The months-long dispute between Universal Music Group and TikTok because of royalty payments and issues over AI is finally ending, as the two have entered a licensing agreement to bring music from the label back to the social media platform.
As per The Hollywood Reporter, the Universal Music Group has now agreed to return music to the platform as the agreement states that it's a “global family of artists, songwriters, and labels and will return their music” to the short video sharing platform. Sir Lucian Grainge, the CEO and chairperson of Universal Music Group, released a statement.
“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 monetization.”
The fiasco between the social media platform and Universal Music Group began in February 2024, and the ban resulted in a total blackout of all music owned by the entity. Because of this, many videos were still there, but the music was removed. During the months-long standoff between the two, UMG also released an open letter accusing the platform of “trying to build a music-based business, without paying fair value for the music.”
The artists under Universal Music Group are Taylor Swift, Bad Bunny, The Weeknd, Alicia Keys, Drake, Ariana Grande, Billie Eilish and many more. The agreement now means that the short video-sharing application users will now be able to make videos featuring songs from these artists.
“Music is an integral part of the TikTok ecosystem”: More details explored as the TikTok CEO issues a statement about the agreement with the Universal Music Group
As Universal Music Group withdrew the music of some famous singers, millions of songs from the application vanished because of the ban imposed by UMG. However, as the rift now seems to be over between the two entities, TikTok and Universal Music Group announced that there will now be “improved remuneration” for the artists.
The Universal Music Group and the Chinese video-sharing application have also joined hands and pledged that the two entities would now work together to “protect human artistry” as the early AI-generated music claims were also a big issue in the ban.
After the agreement was signed between the two entities, TikTok CEO Shou Chew released a statement.
“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.”
As a part of the agreement, UMG and TikTok will also work together to develop new monetization opportunities so that the social media application's potential can be fully used. The agreement also includes features like “Add to Music App” which will benefit artists financially, and also help them in building a broader fan base.
While both entities have agreed upon higher monetization, they have not yet revealed the exact figures. Many social media users are now pouring in their thoughts on the matter, as the music has now made its way back to the short video-sharing application.