TikTok agrees new licensing deal with Universal Music Group

TikTok has agreed a new licensing deal with Universal Music Group (UMG).

Under the agreement, both companies will collaborate on exploring monetisation avenues by harnessing the social media giant’s expanding ecommerce functionalities.

Furthermore, the partnership will execute campaigns to bolster Universals’ artists across various genres and geographic regions worldwide.

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The move follows the public dispute between the two companies when Universal Music Group pulled its music from TikTok earlier this year.

Alongside the partnership, TikTok will continue its investment in developing artist-focused tools aimed at empowering Universal’s artists to maximise their presence on the social media app.

These tools, include the ‘add to music app’ feature, enhanced data analytics, and integrated ticketing capabilities.

TikTok CEO Shou Chew 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.”

Universal Music Group, Chairman and CEO, Sir Lucian Grainge, 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 monetisation.”

Meanwhile, UMG and TikTok will also partner to ensure responsible AI development in the music industry, safeguarding human creativity and the economic interests of artists and songwriters.

As a result, the pair will work alongside each other to combat unauthorised AI-generated music on the platform and enhance artist and songwriter attribution tools.

Universal Music Group, Chief Digital Officer and EVP, Michael Nash, concluded: “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.”