Warner Music Group Corp.
The deal licenses the repertoire of Warner Recorded Music and Warner Chappell Music to TikTok, TikTok Music, CapCut, and TikTok's Commercial Music Library.
"Through this expanded and significantly improved partnership for both companies, we can jointly deliver greater value to WMG's artists and songwriters and TikTok's users," Robert Kyncl, CEO, WMG said.
The pact will create new revenue avenues, marketing, and insights opportunities for artists and songwriters.
In addition, artists and songwriters will have access to new ways of working with TikTok's vibrant brand partners and new fandom development and monetization features, like merchandise, ticketing, and digital goods and services, among other opportunities.
The companies also have agreed to a licensing deal for TikTok Music. This premium subscription streaming service was recently launched in Indonesia and Brazil, with plans for further growth in other markets.
"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," said Shou Chew, CEO of TikTok.
Price Action: WMG shares are trading higher by 0.86% to $29.77 on the last check Tuesday.
