TikTok and Universal recently announced a new licensing agreement that will bring popular music back to the social media platform after a months-long dispute. The deal includes improved compensation for artists and songwriters under the Universal Music Group umbrella, as well as addressing concerns about AI-generated content on TikTok. This agreement aims to drive innovation in fan engagement and social music monetization, emphasizing the value of music, human artistry, and the welfare of the creative community.
Universal chairman Sir Lucian Grainge stated that this agreement marks a new chapter in their relationship and will benefit UMG’s artists and songwriters by enhancing their ability to connect and engage with the TikTok community. TikTok’s CEO Shou Chew also expressed a commitment to working together to promote UMG’s talents and deepen their relationship with the platform’s users. This deal comes after a breakdown in negotiations earlier this year, leading to music from all Universal artists being removed from TikTok.
While the return of Universal’s music to TikTok is a positive development, the platform faces uncertainty due to a new US law that requires it to divest from its Chinese parent company ByteDance or risk being shut out of the American market. With 170 million users in the US alone, TikTok’s future hinges on navigating these challenges. The financial terms of the agreement between Universal and TikTok have not been disclosed, but the companies are working to expedite the return of music by artists and songwriters under the Universal Music Group umbrella.
One notable artist who has already returned some of her music to TikTok is Taylor Swift, who owns her own master recordings and songwriting rights, though they are administered by Universal’s publishing arm. The joint statement released by Universal and TikTok indicates that they are working quickly to restore music by UMG artists and songwriters to the platform. Overall, this new licensing agreement signifies a significant step towards resolving the dispute between TikTok and Universal, ensuring that users can once again enjoy the music of popular artists on the platform.
