Universal Music Group and TikTok have unveiled a new multi-year licensing deal to cover royalties for big-name artists and creators like Yungblud, Drake and Lady Gaga.
The latest agreement builds on a 2024 partnership to ensure creative and commercial opportunities for UMG artists and songwriters through expanded marketing and advertising campaigns that include TikTok. The deal came on the heels of the two companies’ months-long and very public standoff over fees paid by TikTok to UMG artists, with the music giant eventually pulling the music from its artist roster and accusing the video social media giant of “trying to build a business based on music, without paying fair value for the music.”
UMG and TikTok struck a more collegial tone on Friday as the music label’s artists, songwriters and creatives will continue to reach out to the social media platform’s global audience for work opportunities.
“The new deal also expands TikTok and UMG’s pioneering commitment to protecting AI (artificial intelligence) that enhances human artistry and ensures platform economics flow effectively to artists and songwriters. TikTok and UMG will work together to remove unauthorized music created by AI,” the companies said in a statement.
UMG and Spotify on Thursday unveiled an agreement for a new feature that allows premium subscribers to make AI-generated covers and remixes of their favorite songs from participating artists and creators. UMG and Spotify are touting the landmark AI and interactive features deal as a new revenue driver for music creators as they benefit from streams generated by fan-made content. UMG has previously struck AI deals with companies such as AI-powered music generator Udio, Splice, and Nvidia.
UMG’s new agreement with TikTok will also see the two companies delve into fan engagement experiences and artist development initiatives, to highlight emerging artists from around the world. “We are proud of the pioneering work we have done with TikTok to create broad benefits for our artists and songwriters,” Michael Nash, executive vice president and chief digital officer at UMG, said in a statement. “With this new agreement, we look forward to driving new and innovative experiences for fans, while further improving social media monetization, and protecting and amplifying human artistry.”
Music has played an increasing role on the TikTok platform, and the social media player has expressed its commitment to growing artists and songwriters by engaging with its global community.
Tracy Gardner, Global Head of Music Business Development at TikTok, added in a statement: “We’re excited to take our partnership with UMG to the next level, building on the strong foundation we’ve already created together for artists, songwriters and fans. TikTok is a unique platform where music discovery, culture and audiences intersect, and this agreement will help create more opportunities for artists and songwriters to engage audiences, grow their communities and achieve professional success on a global scale.”
