Warner Music and TikTok Ink Major Licensing Agreement
Written by djfrosty on July 18, 2023
Warner Music Group and TikTok struck a multi-year licensing deal allowing creators on the short-form video app to use WMG music on Tuesday, marking the first publicly announced deal between a major music company since the popular social media platform since licensing renegotiations began about 18 months ago.
The companies said in a joint statement that the multi-platform agreement licenses the full repertoire of Warner Recorded Music and Warner Chappell Music to TikTok, TikTok Music, CapCut, and TikTok’s Commercial Music Library.
It is the first sizeable deal struck since WMG’s Chief Executive Officer Robert Kyncl took over in January, and it marks the cooling of what has at times been tough negotiations between TikTok and the music industry establishment.
Kyncl and TikTok’s chief execurtive Shou Chew said the agreement would benefit artists.
“We are very excited to partner with Warner Music Group to create a shared vision for the future in which artists, songwriters, music fans and the industry can all benefit from the power of discovery on TikTok platforms,” Chew said.
While terms of the deal were not disclosed, Kyncl described the deal as an “expanded and significantly improved partnership for both companies. We can jointly deliver greater value to WMG’s artists and songwriters and TikTok’s users.”
TikTok has been engaged in ongoing negotiations for roughly the last year over remuneration to the 100-plus rights holders through whom it must license music played on its app. Billboard reported that TikTok had struck short-term licensing deals in 2020 with most major music companies–shorter than the 18-24-month licenses common between the music and tech industries–to use 30-second clips of songs.
But negotiations to reach more permanent agreements had been fraught, with the music industry pushing for greater incentives for rights holders and TikTok exploring what music was really worth on its platform.
Kyncl’s WMG being the first to announce it struck an agreement with TikTok comes after he signaled a friendlier tone during comments he made at a banking conference in March. Kyncl expressed empathy for executives at TikTok at the Morgan Stanley conference, who he said are at “a company that’s kind of embattled today with lots of different institutions around the world.”
“That’s all I look for, fair setup on both sides and to grow a business together,” Kyncl said in March.