Three major music artists, Ariana Grande, Adele, and Rihanna, are set to make a comeback on TikTok following a recent agreement between the social media platform and Universal Music Group (UMG). This deal comes after a dispute that led UMG to remove its music from TikTok, affecting over 1 billion users.
The licensing agreement, announced on Wednesday, will allow TikTok users to incorporate music by UMG artists into their videos within the next one to two weeks. Previously muted videos featuring Universal artists' music due to copyright violations will now be unmuted.
Michael Nash, UMG's chief digital officer, highlighted that the new partnership will bring about significant advancements in commercial and marketing opportunities, as well as enhanced protections for UMG's roster of artists on the platform.
While financial details were not disclosed, the deal aims to provide improved compensation for UMG's songwriters and artists. This will be facilitated through integrated ticketing capabilities, TikTok's expanding e-commerce features, and a tool enabling users to add music from TikTok videos to their preferred music apps.
TikTok CEO Shou Chew expressed satisfaction with the agreement, emphasizing the positive outcome for UMG. Analysts at UBS projected that the deal could potentially double Universal's revenue from TikTok to €200 million, constituting 2% of the company's total revenue.
Universal had removed its music from TikTok in February due to disagreements over royalty fees for its artists, which include big names like Lady Gaga, Coldplay, and Justin Bieber. The company had accused TikTok of undervaluing music and expressed concerns about AI-generated recordings impacting artists' royalties.
Under the new deal, both parties have committed to collaborating on AI development in the music industry to safeguard human artistry and ensure fair compensation for artists and songwriters. TikTok has also pledged to eliminate unauthorized AI-generated music from the platform and enhance artist and songwriter attribution.
Recently, Taylor Swift's music reappeared on TikTok ahead of her latest album release, although specific terms of the agreement were not disclosed by the companies.
