Source: CNN
Ariana Grande, Adele and Rihanna will soon be back on TikTok, joining Taylor Swift after a deal with Universal Music Group ended a feud that saw one of the world’s biggest record labels pull its music from the video platform.
The licensing agreement, announced Wednesday, means that within one to two weeks TikTok’s 1 billion-plus users will be able to use music by UMG artists in their videos. All videos featuring Universal artists’ music that had previously been muted because of copyright violations will be unmuted.
Michael Nash, chief digital officer at UMG, said the new relationship was “predicated on significant advancements in commercial and marketing opportunities as well as protections provided to our industry-leading roster on their platform.”
The companies did not disclose any financial details but said the deal would “deliver improved remuneration for UMG’s songwriters and artists,” including through “integrated ticketing capabilities,” TikTok’s “growing e-commerce capabilities,” and a tool that enables users to add music from TikTok videos to their preferred music apps.
“We are pleased to have found a path forward with Universal Music Group,” TikTok CEO Shou Chew said in a joint statement.
“We think this announcement is a clear positive for UMG,” UBS analysts wrote in a note Thursday. They added that under a “conservative assumption” the new deal could double Universal’s revenue from TikTok to €200 million ($214 million), amounting to 2% of the company’s total revenue.
Universal pulled its music off TikTok in February after the two companies failed to reach an agreement on royalty fees for Universal’s artists, who also include Lady Gaga, Coldplay and Justin Bieber. At the time, Universal accused TikTok of “trying to build a music-based business without paying fair value for the music.”
The company also took issue with TikTok’s encouragement of AI-generated recordings, which it said would “massively dilute the royalty pool for human artists.”
Under the terms of the new deal, the companies have committed to “work together to ensure AI development across the music industry will protect human artistry and the economics that flow to those artists and songwriters.”
“TikTok is also committed to working with UMG to remove unauthorized AI-generated music from the platform, as well as (working on) tools to improve artist and songwriter attribution,” the statement added.
Last month, Swift’s music reappeared on TikTok ahead of the release of her latest album, “The Tortured Poets Department,” although the two companies did not disclose under what terms.