UMG and TikTok have a New Deal, and the War of Words is now a Lovefest

The rancorous public battle UMG and Tikok has ended with a “new multi-dimensional licensing agreement that will deliver significant industry-leading benefits for UMG’s global family of artists, songwriters, and labels and will return their music to TikTok’s billion-plus global community.”

The agreement includes unspecified improvements in remuneration and attribution for UMG’s songwriters and artists, new promotional opportunities, and protections relating to unauthorized generative AI.

The deal also promises new monetization opportunities utilizing TikTok’s growing e-commerce capabilities and improvements to creator tools, including its “Add to Music App,” enhanced data and analytics, and integrated ticketing capabilities.

While UMG artists may have access to some of these tools first, presumably most will eventually open to most or all creators.

“Greed” to “Gratitude”: The War Of Words is now a Lovefest

Just over three months ago, UMG attacked TikTok’s “unwillingness to appropriately compensate artists and songwriters, protect human artists from the harmful effects of AI, and address online safety issues for TikTok’s users.”

Now Sir Lucian Grainge, Chairman and CEO, Universal Music Group says, “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.”

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

For its part, TikTok accused UMG of “greed above the interests of their artists and songwriters” by taking music off a platform with “well over a billion users that serves as a free promotional and discovery vehicle for their talent.”

Yesterday, Shou Chew, CEO of TikTok, 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.”

Ole Obermann, TikTok’s Global Head of Music Business Development, said: “We are delighted to welcome UMG and UMPG back to TikTok. We look forward to working together to forge a path that creates deeper connections between artists, creators, and fans. In particular, we will work together to make sure that AI tools are developed responsibly to enable a new era of musical creativity and fan engagement while protecting human creativity”.

Bruce Houghton is the Founder and Editor of Hypebot, a Senior Advisor at Bandsintown, President of the Skyline Artists Agency, and a Berklee College Of Music professor.