• Wednesday, May 29, 2024
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UMG, TikTok strike new licensing deal

UMG, TikTok strike new licensing deal

Universal Music Group (UMG) and TikTok have struck a new multi-dimensional licensing agreement after both companies fell out in recent months.

According to a joint press release on Thursday, the deal will deliver significant industry-leading benefits for UMG’s global family of artists, songwriters, and labels. It will return UMG’s music to TikTok’s billion-plus global community.

UMG and TikTok stated that they are now working to return music by artists represented by Universal Music Group and songwriters represented by Universal Music Publishing Group to TikTok “in due course.”

This announcement means that all songs, about four million according to MBW, three million recordings, and muted videos containing songs under UMG, will return to the platform and be available for users and content creators on TikTok.

Lucian Grainge, chairman and chief executive officer of Universal Music Group, said, “This new chapter in our relationship with TikTok focuses on the value of music, the primacy of human artistry, and the welfare of the creative community.

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“We look forward to collaborating with the team at TikTok to further the interests of our artists and songwriters and drive innovation in fan engagement while advancing social music monetization.”

Shou Chew, CEO of TikTok, stated, “Music is an integral part of the TikTok ecosystem, and we are pleased to have found a path forward with Universal Music Group.

“We are committed to working together to drive value, discovery, and promotion for all of UMG’s amazing artists and songwriters, and deepen their ability to grow, connect and engage with the TikTok community.”

This announcement ends months of licensing disputes between the two companies. At the end of January 2024, UMG announced that its agreement with TikTok was set to expire on January 31, 2024.

On March 1, UMG’s catalog of over four million songs became unlicensed for use on TikTok, joining UMG’s portfolio of over 3 million recordings, whose license on TikTok expired without renewal on February 1.

As part of the new deal, UMG and TikTok said they would collaborate to identify new monetisation opportunities using TikTok’s e-commerce capabilities. They added that they will also work together to ensure that AI’s development across the music industry will protect human artistry and the economics that flow to artists and songwriters.