Universal Music Group and TikTok Reach New Licensing Agreement, Restoring UMG's Music to the Platform

Universal Music Group (UMG) and TikTok have reached a new multi-dimensional licensing agreement that will return UMG's music and artists to the TikTok platform. The deal, announced on May 2, 2024, marks a strategic collaboration between the two organizations, focused on delivering improved remuneration for UMG's songwriters and artists, new promotional and engagement opportunities, and industry-leading protections with respect to generative AI.

The agreement will allow TikTok's billion-plus global community to once again create videos using music from UMG's artists and songwriters. UMG's previous license with TikTok expired at the end of January, leading to the removal of music from superstars like Taylor Swift, BTS, and others. The new deal aims to focus on the value of music, the primacy of human artistry, and the welfare of the creative community.

Why this matters: The agreement between UMG and TikTok has significant implications for the music industry, as it sets a precedent for how music rights holders and social media platforms can collaborate to protect artists' interests in the age of AI-generated content. The deal also highlights the importance of TikTok as a platform for music discovery and promotion, with many artists relying on the app to reach new audiences.

Both companies will work together to realize new monetization opportunities, including using TikTok's e-commerce capabilities, and support UMG's artists across genres and territories globally. TikTok will also invest resources into building artist-centric tools, including integrating ticketing capabilities and improving data and analytics.

The two companies will collaborate to remove unauthorized AI-generated music from the platform and improve artist and songwriter attribution. "We are excited to enter this new era of collaboration with UMG and the entire music industry," said TikTok CEO Shou Chew. "We are proud to partner with UMG and support the music ecosystem."

The agreement comes amid questions over TikTok's long-term future in the United States, with the Biden administration signing legislation that gives TikTok's Chinese owner, ByteDance, 270 days to sell its U.S. assets. Despite this uncertainty, both UMG and TikTok have expressed optimism about the new partnership and its potential to benefit the music industry and creative community.

UMG's CEO, Lucian Grainge, stated that the new partnership will focus on the value of music, human artistry, and the welfare of the creative community. TikTok CEO Shou Chew also expressed commitment to working with UMG to drive value, discovery, and promotion for UMG's artists and songwriters. The agreement aims to strengthen the connection between artists, creators, and fans on the TikTok platform, with UMG's catalog of 4 million songs and 3 million recordings set to be available on TikTok within one to two weeks.

Key Takeaways

• UMG and TikTok reach new licensing agreement to return UMG's music to the platform.
• Deal aims to improve remuneration for UMG's artists, provide new promotion opportunities, and protect against AI-generated content.
• Agreement sets precedent for how music rights holders and social media can collaborate to protect artists' interests.
• Companies to work on new monetization opportunities, artist-centric tools, and removing unauthorized AI-generated music.
• Deal comes amid uncertainty over TikTok's future in the US, but both companies express optimism about the partnership.