TikTok and Universal Music Group have reached “a new multi-dimensional licencing agreement.”
The agreement “will deliver significant industry-leading benefits for UMG’s global family of artists, songwriters, and labels and will return their money,” according to a joint press release released on Thursday.
The step is being taken at a crucial juncture for the business, as TikTok is increasingly at risk of being blocked in important countries, such as the United States.
Music from UMG’s catalogue, which includes some of the greatest names in contemporary music including Taylor Swift, Billie Eilish, and Ariana Grande, can now again be used by users of TikTok to create music videos.
The reason behind this is that a new content licencing arrangement has finally brought a truce between the social media platform and Universal Music Group (UMG) following months of battle. On the other hand, the corporations withheld the deal’s financial parameters.
Sir Lucian Grainge, Chairman and CEO, of Universal Music Group, said: “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.”
Newsng understands that in one or two weeks, the catalogue will be made available for use in video creation. This implies that previously muted UMG music videos will no longer be muted after the catalogue becomes available.
Shou Chew, CEO of TikTok, added: “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.”
