TikTok and Universal Music Group have agreed to a new licensing agreement, ending a three-month standoff that blocked the songs of some of pop's biggest stars from the influential social media platform.
In a joint announcement early Thursday, the companies said they had agreed to a “multi-dimensional” new deal that includes “improved compensation” for Universal's artists and songwriters and addresses the label's concerns about the growth of AI. Content generated on the app.
In a statement accompanying the announcement, TikTok CEO Shou Chu said music is an “integral part of the TikTok ecosystem.” Lucien Grainge, chief executive officer of Universal, the world's largest music company, whose portfolio includes artists such as Taylor Swift, Ariana Grande, Billie Eilish, Drake and U2, called the deal “a new chapter in our relationship with TikTok.” “We are focused on the following.'' About the value of music, the primacy of human artistry, and the welfare of creative communities. ”
In an internal email to Universal employees, a copy of which was seen by The New York Times, Grainge said that under the new contract, “artists and songwriters will be compensated more than under the previous TikTok deal.” Stated.
The agreement ends a dispute with the music industry's biggest and most controversial technology platform in years. Both companies have publicly criticized each other, and artists from all walks of life have complained that their careers will be affected by the loss of music from TikTok, which has become an important promotional platform and boasts more than 170 million users in the United States. I was worried that it would be damaged. alone.
But the deal also comes amid growing uncertainty for TikTok, as the app could be banned or sold in the U.S. due to national security concerns over the app's owner, China's ByteDance. It was held in President Biden signed a bill last month that would allow TikTok to continue operating in the United States if it is sold within nine months, but the company is expected to challenge the law in court.
Universal began withdrawing permission to use music from TikTok on February 1, following an impasse in negotiations to renew a previous licensing agreement. At the time, Universal said TikTok “attempted to bully us into accepting a transaction that was worth less than our previous transaction, was significantly less than fair market value, and did not reflect exponential growth.” .
Millions of videos including Universal Music (including many artists' own official music videos) were muted on the platform. TikTok said Universal “put its own desires ahead of the interests of artists and songwriters” by taking down the song.
TikTok and Universal have not commented on the negotiations since then. But three weeks ago, Swift, the biggest and most influential artist on Universal's roster, broke ties with the label and returned her music to TikTok ahead of the release of her latest album. The debate seemed to have changed.
Her move may have weakened Universal's influence. However, since the ban went into effect, fans have noticed that songs by many other Universal artists, including Grande and Camila Cabello, have come back in double-speed or slowed-down versions that may have been uploaded to the platform by fans. I noticed that.
TikTok and Universal did not provide specific financial terms of the deal in their announcements. A statement from the companies said they will work together to “enable new monetization opportunities” through e-commerce, with TikTok “investing significant resources” in building tools such as data analytics and ticketing.
The companies added that they are “working quickly” to bring Universal's music back to the platform. It may take several days or weeks.