Universal Music, TikTok strike global licensing deal

In November, the Chinese-owned TikTok signed agreements with Sony Music and Warner Music Group. The latest announcement comes after UMG unexpectedly removed its catalogue from TikTok arch-rival Triller last week. UMG said Triller “shamefully withheld payments owed to our artists” and refused to negotiate new licensing terms.

The new deal will cover recorded music from artists signed to UMG labels and songwriters at Universal Music Publishing Group (UMPG). It seeks to give TikTok users more opportunities to create content through music.

Artists and songwriters will get paid when their music is used in clips and other collaborative initiatives such as digital marketing. The two companies said they would explore new features going forward.

“We are excited to enter this new era with UMG and UMPG to continue supporting artists and songwriters, by working together to help reach music fans on TikTok,” TikTok global head of music Ole Obermann said.

“Our platform has been a driver in creating chart hits, and licensing the world’s biggest catalogue of tracks will continue to inspire our community. In turn, we are proud to partner with UMG and UMPG to be a source to help new talent emerge and to reintroduce legacy acts to a new audience.”

UMG executive vice-president of digital strategy Michael Nash said: “UMG and TikTok will now work more closely than ever to promote ambitious experimentation, innovation and collaboration – with the shared objective of developing new music experiences and features.

“Driving new and deeper connections with fans, this agreement delivers equitable compensation to our recording artists and songwriters, as well as a commitment to develop industry-leading tools, A&R insights and models necessary to advance their careers.”

TikTok has emerged as a music hitmaking force in recent years, with users’ clips breaking new and old songs, most notably Roddy Ricch’s ‘The Box’ and Fleetwood Mac’s ‘Dreams’. More than 70 artists who got a big break on TikTok have gone on to sign deals with major labels in the past 12 months, according the company’s first US Music report published in December. The platform says more than 176 songs topped 1 billion video views as TikTok sounds last year.

TikTok inked a host of deals with labels last year, including UnitedMasters, Merlin, Believe and ICE, among others.

Meanwhile, Triller hit back at UMG saying that the short-form video app does not need UMG to run its business. “Triller does not need a deal with UMG to continue operating as it has been since the relevant artists are already shareholders or partners on Triller, and thus can authorise their usage directly. Triller has no use for a licensing deal with UMG,” a Triller spokesperson said.