tiktok strikes new licensing agreement with sony music

TikTok revealed this morning a new licensing arrangement with Sony Music Entertainment (SME), ensuring the continuation of Sony Music artists’ songs being available for use by content creators on the platform. TikTok also stated that the two companies will collaborate on initiatives to promote Sony artists.
The specific details of the agreement were not disclosed. However, TikTok’s creative community will now have access to audio selections from Sony Music’s extensive catalog, including current popular songs, recent releases, rising artists, timeless classics, and lesser-known tracks, as TikTok explained in its announcement.
The company also indicated, without providing specifics, that it will work alongside Sony to enhance “TikTok user personalization and creativity” and “create innovative opportunities for fan engagement with SME artists and their music.”
This suggests the companies may collaborate on promotional campaigns that go beyond simply featuring Sony’s music – potentially including hashtag challenges or branded effects designed to improve music discovery and foster connections between fans.
Earlier this year, TikTok had already established temporary licensing agreements with Universal, Sony, and Warner, according to reports. These agreements provided the labels with additional time to finalize the terms of their arrangements with TikTok, preventing music removal from the platform during negotiations.
A Billboard report indicates that TikTok will now remit a “significant increase” in payment to Sony compared to their previous agreement. TikTok has not yet announced similar expanded agreements with other major record labels.
Despite increasing payments to record labels, TikTok possesses considerable negotiating leverage. The video platform has demonstrated a consistent ability to propel songs up the music charts and even launch the careers of emerging artists.
Nielsen reported last year that no other new application had been more effective in promoting songs than TikTok. They cited “Old Town Road” by Lil Nas X, as well as “Sweet But Psycho” by Ava Max and “Slow Dancing in the Dark” by Joji, as examples of TikTok’s impact on music popularity.
Billboard also highlighted today that TikTok contributed to the success of hits from Sony artists such as Doja Cat (“Say So”) and 24kGoldn (“Mood”), and aided Sony in identifying new talent. Columbia Records, for instance, signed several artists who gained prominence on TikTok, including Lil Nas X, Powfu, StaySolidRocky, Jawsh 685, Arizona Zervas, and 24kGoldn, the report stated.
The new agreement with Sony will also encompass artists like Vampire Weekend, Harry Styles, Michael Jackson, and others.
In related news, Spotify today launched a new marketing tool for artists designed to help them capitalize on trends originating on TikTok. This release followed a viral TikTok video that unexpectedly propelled Fleetwood Mac’s classic song “Dreams” back to the top of both Spotify and Apple Music charts.
TikTok also referenced its ability to help artists connect with fans during a time when in-person concerts are limited due to the pandemic.
Sony issued a statement commending TikTok’s ability to facilitate music discovery.
“Short-form video has become a dynamic and important component of the music landscape, contributing to the growth of music and the ways in which fans experience it,” said Dennis Kooker, president, Global Digital Business and U.S. Sales for Sony Music Entertainment. “TikTok is a leader in this area, and we are excited to partner with them to drive music discovery, expand creative opportunities, and support artist careers,” he continued.
TikTok has been expanding its music offerings in recent months, adding music from artists such as Prince, George Michael, and John Lennon prior to the Sony agreement.