TikTok, the immensely popular social video platform, has managed to put at least one major controversy behind it, despite being in the midst of a countdown that could result in its ban in the US. A new multi-dimensional licensing deal has been worked on by video sharing app TikTok and music company Universal Music Group (UMG). To assist UMG’s artists and songwriters in realizing their full creative and financial potential, the licensing agreement leverages TikTok’s global community.
Drake, Adele, Bad Bunny, Billie Eilish, and other Universal Music Group artists will be making a comeback to TikTok as a result of a renewed licensing agreement reached between the two parties after a roughly three-month-long dispute. Under the terms of the agreement, both companies will collaborate to create new revenue streams by leveraging TikTok’s expanding eCommerce capabilities and will work together on global campaigns that support UMG artists in all genres and geographies. The new agreement, according to the companies, will increase songwriters’ and artists’ compensation at Universal Music Group, whose music is featured in the app’s videos. After an agreement was reached, UMG artists should expect their music to be released again in a week or two. The muted videos will become unmuted.
The specifics of how Taylor Swift’s songs returned to TikTok last month are unknown, but her recently released album “The Tortured Poets Department,” which peaked at No. 1 on the Billboard 200 chart, is one of her strongest albums. The company that owns ByteDance, TikTok, stated that it is dedicated to taking down any illegal music produced by AI from its platform.
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Additionally, TikTok will keep spending money developing tools for artists that will enable UMG musicians to reach their full potential on the platform. The ‘add to music app‘ feature, improved data and analytics, and integrated ticketing capabilities are some examples of these tools that will help artists monetarily and enable them to grow their fan bases by leveraging TikTok’s community and scale.
Three issues were being pressed by UMG on TikTok at the time: “appropriate compensation for our artists and songwriters, protecting human artists from the harmful effects of AI, and online safety for TikTok’s users.” In response to UMG’s allegations, TikTok asserted that it had “artist-first” agreements with all other labels and publishers.
To provide better compensation for UMG’s songwriters and artists as well as opportunities for promotional engagement for their recordings and songs, UMG and TikTok will leverage the technology, marketing, and promotional capabilities of the platform for artists. Additionally, TikTok will offer the best generative AI protections in the market. The parties declared that their new deal would return music to TikTok and provide major advantages to UMG’s global stable of musicians, songwriters, and labels.
Shou Chew, CEO of TikTok, said,
“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.”
Sir Lucian Grainge, Chairman and CEO, Universal Music Group, added,
“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.”
Ole Obermann, TikTok’s Global Head of Music Business Development, commented
“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. In particular, 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”.
Michael Nash, Chief Digital Officer and EVP, Universal Music Group stated,
“Developing transformational partnerships with important innovators is critical to UMG’s commitment to promoting an environment in which artists and songwriters prosper. We’re gratified to renew our relationship with TikTok predicated on significant advancements in commercial and marketing opportunities as well as protections provided to our industry-leading roster on their platform. With the constantly evolving ways that social interaction, fan engagement, music discovery and artistic ingenuity converge on TikTok, we see great potential in our collaboration going forward.”
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