TikTok and Universal Music Group Strike New Licensing Deal

After months without music from Universal Music Group (UMG) on its platform, TikTok has finally reached a new licensing agreement with the major record label. While the terms of the deal were not disclosed, it is being hailed as a strategic partnership that will benefit both companies going forward.

When UMG pulled its catalog in February after negotiations on renewing their deal stalled, it left a major hole in the content available to TikTok's users. UMG represents some of the biggest names in music, including Taylor Swift, Billie Eilish, Drake, and The Weeknd. Without access to these hit songs, it impacted what videos could be set to music on the platform. Creators were no longer able to utilize popular UMG tracks in their videos, removing a major creative tool.

The return of UMG's catalog is a big win for TikTok. Music plays a central role in how users engage with content on the app. Being able to access the full array of top 40 hits and back catalog songs will keep people entertained and spending more time on the platform. It also opens up new creative possibilities, as videos can once again feature the most popular tracks at any given time.

From UMG's perspective, partnering with TikTok provides a massive promotional opportunity. The app has proven extremely effective at exposing new songs and launching breakout artists. According to a recent report, 75% of TikTok users discover new music while on the platform.

This word-of-mouth, viral style of promotion has been directly responsible for the success of hits like Lil Nas X's "Old Town Road." Artists and their teams have access to detailed "SMM panel" analytics showing what content and hashtags resonate most, allowing them to better engage fans and go viral.

Beyond promotion, the new deal also enables monetization opportunities through TikTok's growing e-commerce functions. The agreement will see the two companies work together on new ways for UMG artists to profit from their popularity on the app. This includes ticket sales for live performances as well as merchandise available to purchase directly within TikTok. Artists will receive an improved revenue share from these transactions compared to the previous terms.

For labels and artists, partnering with major social platforms like TikTok has become essential to reaching massive new audiences. The app's unparalleled promotional power was a big factor in bringing UMG back into the fold with a mutually beneficial agreement. Both companies stand to significantly increase their businesses thanks to this reestablished licensing deal and new strategic partnership.

Looking to maximize exposure for your music or brand on TikTok? Great SMM offers professional SMM services including in-depth analysis of metrics through their specialized "SMM panel." Our expert consultants have extensive experience leveraging viral hashtags and developing engaging content strategies to attract new fans and supercharge growth on TikTok. Visit our website to learn more.