TikTok and Universal Music Group (UMG) announced a new licensing agreement on Thursday, ending a protracted dispute that had resulted in the removal of popular music from the social media platform.
The joint statement emphasized “improved remuneration” for artists and songwriters under UMG, addressing concerns about AI-generated content on TikTok.
Universal Chairman Sir Lucian Grainge heralded the agreement as a “new chapter in our relationship,” poised to “drive innovation in fan engagement while advancing social music monetization.” He highlighted the deal’s focus on valuing music, prioritizing human artistry, and supporting the creative community.
TikTok CEO Shou Chew echoed Grainge’s sentiments, expressing the company’s commitment to working with UMG to enhance value, discovery, and promotion for its artists and songwriters. Chew underscored the aim to deepen artists’ connections and engagement with the TikTok community.
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The deal concludes a contentious negotiation period where both industry giants publicly clashed while seeking leverage. Earlier this year, UMG, home to artists like Taylor Swift, Drake, and Billie Eilish, demanded the removal of its music from TikTok, sparking concern over the lost marketing potential the platform offers. Millions of videos featuring UMG artists were muted as a result.
With the agreement, UMG’s music will return to TikTok. This resolution comes amidst uncertainty for TikTok, as a new U.S. law requires the company to divest from its Chinese parent company ByteDance or face a ban in the American market, where it boasts 170 million users.
