Universal ends dispute with TikTok, turns to Spotify
Having ended its dispute with TikTok, the world’s largest music publishing and distribution label, Universal Music Group (UMG) says it is now looking to expand its strategic relationship with Spotify, the world’s leading music streaming platform, in a bid to increase royalty income for its artistes.
Signs of improving relations between TikTok and UMG emerged in April this year after the label accused the social media app of “bullying” amid a stalemate over payments.
The two companies ended up trading accusations, with UMG claiming that TikTok wanted to pay a “fraction” of what other social media sites charge for access to its vast music catalogue. On its part, TikTok accused UMG of ‘greed’ and ‘false narrative and rhetoric’.
Although TikTok boasts more than a billion users, the label says it accounts for less than one per cent of Universal’s total revenue.
When the row broke out, UMG pulled its catalogue from TikTok, meaning users couldn’t access songs from a number of high-profile stars including The Weeknd, Taylor Swift and Kenya’s all-time most streamed artiste on Spotify, Drake, who is represented by UMG.
However, this week the two companies reached a new, improved licensing agreement that will see the recording artistes and songwriters earn more from TikTok royalties than they did under the previous deal.
Welcoming the new deal with TikTok, UMG chairman and CEO Lucian Grainge insisted that human artistry must be respected.
“It’s another significant step we’ve taken to lead the industry’s evolution into a future where human artistry must be respected,” Grainge told analysts in response to questions.
With the TikTok dispute now over, Grainge said Universal will now look to expand its relationship with Spotify, one of its biggest royalty generators.
“Spotify has been an incredibly good partner in everything we’re trying to do to grow the whole pie to grow the business,” Grainge told analysts in response to questions.
Taylor Swift is Universal’s most valuable asset at the moment, with her records doing well. Her latest album, The Tortured Poets Department, has shattered record sales.
In 2023, Swift was Spotify’s top earner, raking in more than $130m in royalties after topping the platform’s most-streamed artist list at the end of the year.