On Wednesday (May 1), Universal Music Group and TikTok reached an agreement to bring the label’s music’s return to the social media platform after months of dispute over royalty payments and AI policies.
The companies agreed to pay UMG’s artists and songwriters better, provide new promotional opportunities, and strengthen protections against generative AI.
The new deal will see the music return imminently, and the companies will collaborate on what they call “new monetization opportunities utilizing TikTok’s growing e-commerce capabilities and will work together on campaigns supporting UMG’s artists across genres and territories globally.”
In February, Universal Music Group blocked their music from a platform, resulting in a near-complete blackout. The ban significantly disrupted the careers of many artists, but some, like Taylor Swift, defied it. UMG banned it to protect its interests and protect its artists.
“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,” said Lucian Grainge, chairman and CEO of UMG. “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.”
TikTok CEO Shou Chew expressed the importance of the music for user’s experience on the platform. He adds:
“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.”
ByteDance, TikTok’s parent company, has been ordered to sell the majority of its American business after President Joe Biden signed new legislation. If its lawsuit challenging the new U.S. law on First Amendment grounds fails, TikTok may be outlawed in the U.S. by January 2025
According to financial reports, TikTok generated $16 billion in revenue in the U.S. in 2023, valuing the business at up to $150 billion.