Ariana Grande, Adele, and Rihanna are set to return to TikTok soon, joining Taylor Swift after a recent agreement with Universal Music Group (UMG) resolved a dispute that led to UMG pulling its music from the platform.
Under the new licensing deal announced on Wednesday, TikTok’s over 1 billion users will regain access to music by UMG artists within the next one to two weeks. Previously muted videos featuring UMG artists’ music due to copyright violations will also be unmuted.
A Suitable Musical Deal: UMG and TikTok deal gets More Profitable for the Artists
UMG’s Chief Digital Officer, Michael Nash, highlighted the improved commercial and marketing opportunities for UMG artists as a key factor in the new partnership.
While financial details were not disclosed, the deal is expected to provide better compensation for UMG’s songwriters and artists. This includes opportunities for integrated ticketing and e-commerce capabilities on TikTok, as well as a tool allowing users to add music from TikTok videos to their preferred music apps.
TikTok CEO Shou Chew expressed satisfaction with the agreement, stating that it opens up positive prospects for both parties.
Analysts at UBS view the deal favorably for UMG, estimating a potential doubling of revenue from TikTok to €200 million ($214 million), representing about 2% of the company’s total revenue.
The dispute between UMG and TikTok began in February when UMG removed its music from the platform due to disagreements over royalty fees. UMG also raised concerns about TikTok’s use of AI-generated music, which it believed would reduce royalties for human artists.
As part of the new deal, both companies have committed to protecting human artistry and ensuring fair compensation for artists and songwriters. This includes removing unauthorized AI-generated music from TikTok and improving artist attribution.
Last month, Taylor Swift’s music returned to TikTok ahead of her latest album release, although the terms of that agreement were not disclosed.
