Universal Music Group (UMG) has reached an agreement with Hook, a self-described social music app, that lets users remix recordings from participating UMG artists, share those remixes on social media, and build in-app fan communities around the artists.
Deal terms and artist controls
The agreement gives rightsholders control over which features are available. Key elements include:
- Remix recordings from participating UMG artists
- Share remixes on social media
- Build in-app fan communities around those artists
- Rightsholders can switch remixes and sound effects on or off
Remixes and sound effects “can simply be switched on or off” by rightsholders, according to the announcement.
“We believe the biggest consumer use case for music creation isn’t making original songs that compete with artists,” said Gaurav Sharma, Hook’s founder and CEO. “It’s about expressing yourself through the artists and songs you love while participating in the communities and culture they inspire.”
Universal Music Group said: “Rather than building on artists’ work and asking permission later, Hook spent its first years earning licenses and building the rights framework with the industry first.”
Backing and technology
Artificial intelligence is barely mentioned in the announcement or on Hook’s website, but users apply the technology to more than one million existing tracks on the platform. Hook also secured a SoundCloud integration partnership last year.
Hook closed a $10 million Series A in February. Its backers include Waverley Capital, led by former Warner Music head Edgar Bronfman Jr., and Khosla Ventures, whose founder Vinod Khosla was an early investor in OpenAI.
Industry context
The agreement arrives as major music companies pursue different generative AI strategies. Sony Music has filed a lawsuit against Udio, and that litigation may affect the upcoming release of Udio’s licensed product developed with the other major labels and Merlin.
BMG and Warner Music are the only companies licensing Suno, which is also facing a copyright complaint from Round Hill. Universal Music Group is the sole major partner on Spotify‘s upcoming AI remix and cover feature.
Spotify, a digital service provider (DSP), and Universal Music Group announced that collaboration three months ago. During Spotify’s latest earnings call, executives said the feature can launch without a full catalog in place.
