TikTok announced a new partnership with Warner Music. Under the deal, TikTok will gain license to Warner's full music library for use on the app, TikTok Music, CapCut, and in TikTok's Commercial Music Library, in varying form.
TikTok has been negotiating with major music labels for months, amid ongoing dispute over the value of music usage for the app. Warner, Universal, and Sony have been pushing for TikTok to share more of its ad revenue with them, and increase the royalties that it pays for their music rights, which has left negotiations at a standstill for some time.
But now, TikTok has just done that, at least with Warner, which will only solidify its place as the key promotional partner for Warner artists.
As the company puts it:
"As part of the deal, Warner Music Group and TikTok will discover new ways to leverage TikTok's revenue generation and promotional capabilities, as well as a treasure trove of insights.". Besides this, artists and songwriters will also have new ways of working with TikTok's vibrant brand partners, as well as new fandom development and monetization features, like merchandise, ticketing, and digital goods and services, and many other opportunities. Further, the deal will add, together with additional and alternative economic models.
TikTok is now the go-to platform for music promotion, with several labels now looking specifically to angle their artists' tracks in line with evolving trends on TikTok. Some have gone as far as to change the name of tracks in line with usage on TikTok, and as that app drives billions in record sales through viral trends, it makes sense for labels to be paying attention and trying to work with such shifts.
Now, through this deal, Warner will have more capacity to do just that, which will also secure the future usage of Warner music for users and brands alike. TikTok has been experimenting with removing commercial tracks entirely, as part of its negotiations with labels, but now, with this deal, that may no longer be a necessary pathway for the app to consider.
It's a big deal, with a range of implications. And with Warner on board at the party, you can expect the other major labels will soon follow.
TikTok will announce additional developments flowing from this new arrangement in the months ahead.