Universal Music Group Signs New Licensing Agreement with TikTok

Screengrab from: Universal Music Group and TikTok Announce New Licensing Agreement - UMG

A joint press release by Universal Music Group and TikTok was released on the 1st of May which revolves around the new licensing agreement between the two parties. According to Music Business Worldwide, immediate and swift efforts are now underway to bring UMG's catalogue of music back onto TikTok's platform. There is no clear timeline as of now, however both corporations aim to “unmute” songs which were previously muted following the severance of their initial agreement. (Read full article here: UNIVERSAL MUSIC AND TIKTOK STRIKE NEW LICENSING DEAL – INCLUDING ‘IMPROVED REMUNERATION’ FOR UMG ARTISTS AND SONGWRITERS ).  Lucian Grange, CEO and Chairperson of UMG goes on to even say during the said press release that “[w]e (UMG) 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.”  

The article further states that this new agreement aims to address three issues called out by Universal Music Group in an “open letter to the artist and songwriter community,” following the expiry and non-renewal of licensing agreement with TikTok dating Jan 31, 2024.  

• appropriate compensation for our artists and songwriters,  

• protecting human artists from the harmful effects of AI  

• online safety for TikTok’s users 

TikTok CEO, Shou Chew also shares his sentiments towards the value of music in their platform saying: “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.”  

Moreover, in a news article published by CNN, UBS analysts forecast that UMG will double its revenue from TikTok's platforms given this new arrangement. (read full article here: It’s not just Taylor Swift. The world’s biggest artists are returning to TikTok) 

The renewal of UMG and TikTok's partnership is large in scale due to UMG's catalogue of ~4 million songs from renowned artists such as Taylor Swift, Arianna Grande, and Adele, to name a few, which will be able on TikTok's platform which has a wide reach as well. This will hopefully bring growth to the music industry and a safer platform to release music.  

About Philippines Recorded Music Rights 

Philippines Recorded Music Rights Inc. (PRM) is a Collective Management Organization (CMO) accredited by Intellectual Property Office of The Philippines (IPOPHL). PRM represents labels (including Universal Music Group) and performers. All performers signed under the record labels are automatically members of PRM. Such is the case for artists such as Zack Tabudlo, Moira Dela Torre, and JK Labajo to name a few. In general, the group's objective is to collect royalties from all establishments using sound recorded music. Collected royalties will then be distributed to all members, giving credit to where credit is due. PRM’s advocacy to centralized in #ProtectingMusicIsOurPassion