Universal Music Group and TikTok have resolved their months-long standoff over royalty payments and artificial intelligence policies with a new agreement. The deal includes improved compensation for UMG’s artists and songwriters, promotional opportunities, and enhanced protections regarding generative AI. Lucian Grainge, UMG’s chairman and CEO, expressed excitement about collaborating with TikTok to further the interests of their artists and drive innovation in fan engagement and social music monetization. TikTok’s CEO, Shou Chew, emphasized the importance of music in the platform’s ecosystem and their commitment to promoting UMG’s artists to the TikTok community.
The ban on UMG’s music, which began in February, resulted in a nearly complete blackout of the label’s music on TikTok, with videos still visible but no music audible. Despite the ban, some artists broke the ban either officially or unofficially, causing disruption in their careers. TikTok has been a crucial platform for music discovery and promotion over the past five years, leading music companies to encourage their artists to become more active on the platform. However, the ban by UMG prevented their artists from utilizing TikTok’s reach, affecting their ability to connect with fans and grow their audience.
The decision to lift the ban on UMG’s music on TikTok comes at a critical time for the platform, as it faces challenges stemming from U.S. legislation that could potentially ban the app unless its Chinese parent company divests its ownership stake. TikTok has announced plans to challenge the new U.S. law on First Amendment grounds, but if unsuccessful, the app could be outlawed in the U.S. by January 2025. Given this larger struggle facing TikTok and the mixed support for UMG’s ban, both companies likely decided to settle their differences and move forward in a collaborative manner.
UMG’s concerns regarding copyright infringement and content adjacency issues on TikTok were outlined in a letter to artists issued in January. The company expressed frustration with TikTok’s handling of infringing content and the process for removing problematic material, describing it as inefficient and cumbersome. UMG’s decision to ban its music from TikTok was driven by a desire to protect their artists and songwriters and uphold the value of music commercially and creatively. However, the ban had limited impact on TikTok, aside from some negative publicity, and both parties ultimately reached an agreement to bring UMG’s music back to the platform.
The new agreement between UMG and TikTok will not only benefit UMG’s artists and songwriters but also open up new monetization opportunities using TikTok’s e-commerce capabilities and support campaigns for UMG’s artists across genres and territories globally. The collaboration aims to drive value, discovery, and promotion for UMG’s roster of talent, allowing them to deepen their connection with the TikTok community. Both UMG and TikTok are looking forward to leveraging their partnership to innovate in fan engagement and social music monetization, creating a win-win situation for all parties involved.
