While the eyes of the world are riveted on movies and television for entertainment these days—not to mention the ongoing strikes shutting most of those operations down—there’s still music to consider. Indeed, Warner Music Group (NASDAQ:WMG) signed a new licensing agreement with TikTok, one of the most controversial social media outlets in existence.
Pick the best stocks and maximize your portfolio:
- Discover top-rated stocks from highly ranked analysts with Analyst Top Stocks!
- Easily identify outperforming stocks and invest smarter with Top Smart Score Stocks
The agreement connects TikTok with both Warner Recorded Music and Warner Chappell Music. It allows not only TikTok to put said music to use but also gives TikTok Music, CapCut, and the Commercial Music Library at TikTok access to the full range of titles. Warner went along with the deal hoping to gain better access to TikTok’s growing array of users, and also gives the musicians that are part of Warner the ability to market their craft to that market niche as well. That should, in turn, mean new revenue streams for all involved.
Admittedly, that only means so much right now. TikTok Music is only available in Indonesia and Brazil, and chances are, a lot of those music consumers had access to Warner Music on other venues before TikTok Music got involved. Still, though, Warner was likely happy to make the deal, as TikTok’s comparatively low position in the field would likely make it more willing to cut favorable deals with the studios in question. TikTok Music needs music in order to get anywhere, and it’s going to need to go through the studios to get it.
Analysts are somewhat split on Warner Music Group stock, however, even with this deal in place. Currently, Warner Music Group stock is a Moderate Buy, with six Buy ratings and five Holds. Further, with an average price target of $30.64, Warner Music Group stock offers just 2.54% upside potential.
