TikTok and Universal Music strike new licensing deal

2 May 2024

Taylor Swift on The Eras Tour in 2023. Image: Paolo Villanueva/Flickr (CC BY 2.0 DEED)

Earlier this year, the world’s biggest music company called out TikTok for not fairly compensating its artists and using ‘intimidating’ tactics in deal renewal talks.

TikTok and Universal Music Group have announced a new licensing agreement that will see music from many famous and rising music artists back on the app.

The new deal, described by both parties as a “multidimensional” licensing agreement, seeks to deliver better remuneration for Universal Music artists and songwriters – which includes Taylor Swift, The Weeknd and Billie Eilish – and offer them “new promotional and engagement opportunities”.

It will also provide artists with “industry-leading” protections with respect to generative AI, which poses significant intellectual property and copyright infringement threats to the music industry.

Relations between Universal Music – the biggest music company in the world – and TikTok began to sour after the former published a castigating open letter against the platform in January, accusing it of trying to build a music-based business without paying “fair value” for the music and for sponsoring the “replacement” of artists by AI.

The group went so far as to call out TikTok for “intimidation” and “bullying” in deal renewal talks. By the end of February, TikTok began removing songs published by Universal Music artists as the disagreement intensified.

Now, TikTok CEO Shou Chew says he is pleased the two parties have “found a path forward”.

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

As part of the agreement, TikTok and Universal Music will work together to utilise the app’s growing e-commerce capabilities to realise new monetising opportunities for artists globally.

TikTok – which has more than a billion users – will also continue to invest in tools that help promote artists on the app, including through options to add their songs to music apps, enhanced data and analytics, and integrated ticketing capabilities.

The companies claim that the deal will ensure that AI development in the music industry protects “human artistry”. TikTok said it is committed to removing unauthorised AI-generated music on the platform.

Lucian Grainge, CEO and chair of Universal Music, said that the new licensing agreement marks a “new chapter” in its relationship with TikTok that will focus 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 monetisation,” he said.

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Taylor Swift on The Eras Tour in 2023. Image: Paolo Villanueva/Flickr (CC BY 2.0 DEED)

Vish Gain was a journalist with Silicon Republic

editorial@siliconrepublic.com