Artists from Universal Music Group, which include Taylor Swift, Drake, Adele, Bad Bunny and Billie Eilish, will be returning to TikTok as the two parties have struck a new licensing agreement following an approximately three-month long dispute.
The two sides said Thursday that they are “now working expeditiously to return music by artists represented by Universal Music Group and songwriters represented by Universal Music Publishing Group to TikTok in due course.”
UMG said in January that it had not agreed to terms of a new deal with TikTok, and planned to stop licensing content from the artists it represents on the social media platform that is owned by ByteDance, as well as TikTok Music services.
At the time, UMG had been pressing TikTok on three issues: “appropriate compensation for our artists and songwriters, protecting human artists from the harmful effects of AI, and online safety for TikTok’s users.”
TikTok pushed back against the claims by UMG, saying that it had reached ‘artist-first’ agreements with every other label and publisher.
On Thursday the two sides announced that their new agreement would give significant benefits to UMG’s global stable of artists, songwriters and labels and would return their music to TikTok.
“Music is an integral part of the TikTok ecosystem and we are pleased to have found a path forward with Universal Music Group," TikTok CEO Shou Chew said in a statement. "We are committed to working together to drive value, discovery and promotion for all of UMG’s amazing artists and songwriters, and deepen their ability to grow, connect and engage with the TikTok community.”
Part of the new deal includes UMG and TikTok working together to find new monetization opportunities. They will also will work together on campaigns supporting UMG’s artists across genres and territories globally.
In addition, the companies will put their combined efforts toward ensuring that AI development across the music industry will protect human artistry and payments for artists and songwriters. TikTok will also work with UMG to remove unauthorized AI-generated music from the platform, as well as on tools to improve artist and songwriter attribution.
TikTok plans to continue investing in building artist-centric tools that will help UMG artists realize their potential on the platform. Some tools include “Add to Music App”, enhanced data and analytics, and integrated ticketing capabilities.
“We’re gratified to renew our relationship with TikTok predicated on significant advancements in commercial and marketing opportunities as well as protections provided to our industry-leading roster on their platform,” Michael Nash, chief digital officer and executive vice president, Universal Music Group, said in a statement.
While TikTok has settled its dispute with UMG, the future of the platform remains uncertain. Last month President Joe Biden signed legislation requiring TikTok parent ByteDance to sell to a U.S. owner within a year or to shut down. It’s not clear whether that law will survive an expected legal challenge or that ByteDance would agree to sell.
FILE - Taylor Swift performs at the Monumental stadium during her Eras Tour concert in Buenos Aires, Argentina, Nov. 9, 2023. Artists from Universal Music Group, which include Taylor Swift, Drake, Adele, Bad Bunny and Billie Eilish, will be returning to TikTok as the two parties have struck a new licensing agreement following an approximately three-month long dispute. The two sides said Thursday, May 2, 2024, that they are "now working expeditiously to return music by artists represented by Universal Music Group and songwriters represented by Universal Music Publishing Group to TikTok in due course." (AP Photo/Natacha Pisarenko, File)
NEW YORK & TOKYO--(BUSINESS WIRE)--May 16, 2024--
Accenture (NYSE: ACN) has agreed to acquire OPENSTREAM HOLDINGS and its subsidiaries, Open Stream and Neutral, to help clients reinvent their businesses with advanced digital technologies and become truly data-driven. Terms of the transaction were not disclosed.
This press release features multimedia. View the full release here: https://www.businesswire.com/news/home/20240516015051/en/
The acquisition will add approximately 1,000 cloud and other digital experts to Accenture’s cloud and digital engineering and manufacturing teams. They will strengthen Accenture’s capabilities to support clients in system and application modernization and help them adopt cloud, data, AI and IoT technologies. They will also enhance Accenture’s business by bringing a strong client portfolio and automation solutions for the entire product value chain, from procurement and manufacturing processes to logistics and after-sales service.
Open Stream, with a team of 600 professionals, provides consulting and systems integration services, and advanced technologies, including cloud, AI, IoT and cybersecurity, for logistics and retail industries. The firm also offers low-code development platforms for production management, inventory management, logistics and accounting systems used by more than 2,800 companies, and solutions for smart factories. Open Stream became part of OPENSTREAM HOLDINGS in 2020.
Neutral and its 400 professionals specialize in system integration in the automotive and the manufacturing industries. The firm has built strong credentials in manufacturing management, 3D computer-aided design and computer-aided engineering solutions for the manufacturing industry, system integration of electronic medical records for medical institutions, system integration for local governments, and AI-powered forecasting, root cause analysis and predictive maintenance tools. Neutral joined OPENSTREAM HOLDINGS in 2021.
“With OPENSTREAM HOLDINGS, we can better help our clients reinvent their businesses and become truly data-driven,” said Atsushi Egawa who leads Accenture’s business in Japan. “The cloud and digital expertise that OPENSTREAM HOLDINGS, Open Stream and Neutral possess aligns perfectly with Accenture’s broad capabilities and deep experience in cloud, data and AI. Open Stream’s and Neutral’s talent, solutions and client relationships with manufacturing and logistics companies will also strengthen our Industry X service. Our shared culture and strategy of embracing change will allow us to help Japanese companies scale faster and achieve value quicker.”
“Under our group vision of 'continuously challenging the norm', OPENSTREAM HOLDINGS has been attuned to changes in society and the market, contributing to the creation of a future society enabled by advanced digital technologies,” said Kazuhiko Yoshihara, Representative Director & President of OPENSTREAM HOLDINGS. “Recognizing the accelerated pace of digital reinvention, we aim to be a constant presence that galvanizes the industry by walking together with our clients. Accenture is a company that has realized similar ideals across industries and borders. By joining together, we can further leverage the achievements and experiences we have built in a wide range of fields and contribute to the creation of a better future society.”
By acquiring OPENSTREAM HOLDINGS and its subsidiaries, Accenture continues to invest in its technology and digital engineering and manufacturing capabilities in Japan. In April, the company acquired CLIMB, a technology services provider for system integration, IT infrastructure management and operations, primarily in the Gunma Prefecture. In January, Accenture established a joint venture with MUJIN to bring AI and robotics to the manufacturing and logistics industries. In 2022, it added Trancom ITS ’ digital engineering and operational technology capabilities to its Industry X business. In 2021, it acquired DI Square ’s consulting capabilities for product lifecycle management (PLM) and application lifecycle management (ALM) systems integration.
Completion of the acquisition is subject to customary closing conditions.
About Accenture
Accenture is a leading global professional services company that helps the world’s leading businesses, governments and other organizations build their digital core, optimize their operations, accelerate revenue growth and enhance citizen services—creating tangible value at speed and scale. We are a talent- and innovation-led company with approximately 742,000 people serving clients in more than 120 countries. Technology is at the core of change today, and we are one of the world’s leaders in helping drive that change, with strong ecosystem relationships. We combine our strength in technology and leadership in cloud, data and AI with unmatched industry experience, functional expertise and global delivery capability. We are uniquely able to deliver tangible outcomes because of our broad range of services, solutions and assets across Strategy & Consulting, Technology, Operations, Industry X and Song. These capabilities, together with our culture of shared success and commitment to creating 360° value, enable us to help our clients reinvent and build trusted, lasting relationships. We measure our success by the 360° value we create for our clients, each other, our shareholders, partners and communities. Visit us at www.accenture.com.
Forward-Looking Statements
Except for the historical information and discussions contained herein, statements in this news release may constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Words such as “may,” “will,” “should,” “likely,” “anticipates,” “aspires,” “expects,” “intends,” “plans,” “projects,” “believes,” “estimates,” “positioned,” “outlook,” “goal,” “target” and similar expressions are used to identify these forward-looking statements. These statements are not guarantees of future performance nor promises that goals or targets will be met, and involve a number of risks, uncertainties and other factors that are difficult to predict and could cause actual results to differ materially from those expressed or implied. These risks include, without limitation, risks that: Accenture and OPENSTREAM HOLDINGS will not be able to close the transaction in the time period anticipated, or at all, which is dependent on the parties’ ability to satisfy certain closing conditions; the transaction might not achieve the anticipated benefits for Accenture; Accenture’s results of operations have been, and may in the future be, adversely affected by volatile, negative or uncertain economic and political conditions and the effects of these conditions on the company’s clients’ businesses and levels of business activity; Accenture’s business depends on generating and maintaining client demand for the company’s services and solutions including through the adaptation and expansion of its services and solutions in response to ongoing changes in technology and offerings, and a significant reduction in such demand or an inability to respond to the evolving technological environment could materially affect the company’s results of operations; if Accenture is unable to match people and their skills with client demand around the world and attract and retain professionals with strong leadership skills, the company’s business, the utilization rate of the company’s professionals and the company’s results of operations may be materially adversely affected; Accenture faces legal, reputational and financial risks from any failure to protect client and/or company data from security incidents or cyberattacks; the markets in which Accenture operates are highly competitive, and Accenture might not be able to compete effectively; Accenture’s ability to attract and retain business and employees may depend on its reputation in the marketplace; Accenture’s environmental, social and governance (ESG) commitments and disclosures may expose it to reputational risks and legal liability; if Accenture does not successfully manage and develop its relationships with key ecosystem partners or fails to anticipate and establish new alliances in new technologies, the company’s results of operations could be adversely affected; Accenture’s profitability could materially suffer if the company is unable to obtain favorable pricing for its services and solutions, if the company is unable to remain competitive, if its cost-management strategies are unsuccessful or if it experiences delivery inefficiencies or fail to satisfy certain agreed-upon targets or specific service levels; changes in Accenture’s level of taxes, as well as audits, investigations and tax proceedings, or changes in tax laws or in their interpretation or enforcement, could have a material adverse effect on the company’s effective tax rate, results of operations, cash flows and financial condition; Accenture’s results of operations could be materially adversely affected by fluctuations in foreign currency exchange rates; changes to accounting standards or in the estimates and assumptions Accenture makes in connection with the preparation of its consolidated financial statements could adversely affect its financial results; as a result of Accenture’s geographically diverse operations and strategy to continue to grow in key markets around the world, the company is more susceptible to certain risks; if Accenture is unable to manage the organizational challenges associated with its size, the company might be unable to achieve its business objectives; Accenture might not be successful at acquiring, investing in or integrating businesses, entering into joint ventures or divesting businesses; Accenture’s business could be materially adversely affected if the company incurs legal liability; Accenture’s global operations expose the company to numerous and sometimes conflicting legal and regulatory requirements; Accenture’s work with government clients exposes the company to additional risks inherent in the government contracting environment; if Accenture is unable to protect or enforce its intellectual property rights or if Accenture’s services or solutions infringe upon the intellectual property rights of others or the company loses its ability to utilize the intellectual property of others, its business could be adversely affected; Accenture may be subject to criticism and negative publicity related to its incorporation in Ireland; as well as the risks, uncertainties and other factors discussed under the “Risk Factors” heading in Accenture plc’s most recent Annual Report on Form 10-K and other documents filed with or furnished to the Securities and Exchange Commission. Statements in this news release speak only as of the date they were made, and Accenture undertakes no duty to update any forward-looking statements made in this news release or to conform such statements to actual results or changes in Accenture’s expectations.
Accenture has agreed to acquire OPENSTREAM HOLDINGS and its subsidiaries, Open Stream and Neutral, to help clients reinvent their businesses with advanced digital technologies and become truly data-driven. (Graphic: Business Wire)
