Warner Music Group And TikTok Warner Recorded Music and Warner Chappell Music have announced a first-of-its-kind partnership to expand their licensing agreement to include TikTok, TikTok Music, CapCut, and TikTok’s Commercial Music Library.
The deal marks a big step forward for Robert Kyncl, CEO of Warner Music Group at the beginning of the year, to take a bigger stake in TikTok, which many record label executives have claimed. artists, but not nearly at the level of revenue sharing they would like to see.
With TikTok launching its own streaming service, TikTok Music, which has so far only been available in Brazil and Indonesia, is in a position to have some advantage in making TikTok-as-a-service more viable deals to monetize its core app. will clearly rely on the help of record companies to expand its streaming component to the US, UK and other global markets. With this new deal, Kyncl, who knows both sides of the fence and previously served as YouTube’s general manager, seems to be taking advantage of this and has promised plenty of support in return for TikTok.
According to a press release, the multi-year, multi-product agreement will “expand the level of partnership, collaboration and innovation between the two companies.” “It will create new revenue, marketing and insight opportunities for WMG’s artists and songwriters, while deepening engagement with TikTok’s massive audience of passionate music fans.”
The license agreement covers TikTok’s new streaming service, which is enjoying its childhood in foreign markets, as well as TikTok’s sister application for video editing, CapCut.
The deal will allow Warner Music Group to use TikTok’s revenue generation and promotional capabilities as well as work with brand partners. The deal will allow for the joint development of economic models and will provide WMG artists and songwriters with monetization features such as merchandise, ticketing and digital goods.
“We are happy and excited for our next episode with TikTok,” Kyncl said. “Through this expanded and significantly improved partnership for both companies, we can jointly deliver greater value to WMG’s artists, songwriters and TikTok users.”
Shou Chew, TikTok CEO, said: “We are excited to partner with Warner Music Group to create a shared vision of the future where artists, songwriters, music fans and the industry can harness the power of discovery on TikTok platforms . . . ”