In an interesting change of events Universal Music Group has agreed to a licensing deal with TikTok.
This agreement has allowed UMG artists’ music catalogs back on the popular platform for creatives, TikTok, which has a billion plus users worldwide. Some of the artists under the UMG umbrella include Lady Gaga, Drake, Taylor Swift, Bad Bunny and Kendrick Lamar.
In February, the music behemoth removed their music from the app, causing a disruption for artists under the conglomerate who use TikTok to expand their exposure worldwide. The removal of the music also affected creatives and influencers as their videos remained, but the complementary sound was removed from their mobile video posts.
The UMG press release states, “ UMG and TikTok will deliver improved remuneration for UMG’s songwriters and artists, new promotional and engagement opportunities for their recordings and songs and industry-leading protections with respect to generative AI.
Sir Lucian Grainge, Chairman and CEO, Universal Music Group, added in the press release : “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. 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.”
And Ole Obermann, TikTok’s Global Head of Music Business Development, said: “We are delighted to welcome UMG and UMPG back to TikTok. We look forward to working together to forge a path that creates deeper connections between artists, creators, and fans. We will work together to make sure that AI tools are developed responsibly to enable a new era of musical creativity and fan engagement while protecting human creativity.”
While the specific financial terms of the licensing deal have not been revealed, when the previous contract expired with TikTok, the two entertainment companies could not come to terms over royalty payments.
One thing is for certain, creatives worldwide are excited to have some of their favorite artists’ music back on the most used and downloaded app globally and hopefully artists are getting a more equitable share of royalties for their music.
It is estimated that 20 to 30 percent of the music played on TikTok is from UMG artists.
Written By David Lopez
