As reported by Music Business Worldwide, TikTok has recently announced a significant multi-year agreement with UnitedMasters, a prominent independent artist services and distribution platform. This partnership is noteworthy, especially considering that UnitedMasters is a member of Merlin, indicating that previously, their licensing had been managed through Merlin.
The backdrop to this agreement was the impending expiry of TikTok's blanket licensing deal with Merlin, which was set to conclude on October 31st. Earlier reports revealed that TikTok had opted to terminate re-licensing negotiations with Merlin, citing “operational challenges with Merlin in the past where music that is not quality controlled for copyright is delivered.” Instead of pursuing a new blanket agreement, TikTok has opened its doors for individual Merlin members to negotiate direct licensing agreements.
In an announcement made on the evening of October 23rd, TikTok described this collaboration with UnitedMasters as a “groundbreaking new direct partnership,” one that will facilitate the integration of UnitedMasters’ extensive catalog into TikTok’s platform. This partnership is also set to “provide additional commercial opportunities to UnitedMasters artists via TikTok’s Commercial Music Library.”
The impact of UnitedMasters on emerging talent is significant, with the platform instrumental in launching the careers of artists such as Floyy Menor. His viral hit "Gata Only" has amassed over a billion streams and earned the distinction of being TikTok’s No.1 Song of the Summer globally, as reported earlier this year.
“TikTok’s ability to propel a track to success has been demonstrated time and time again, as songs that find popularity on the platform cross over and experience mainstream success on the charts,” asserted Steve Stoute, Founder and CEO of UnitedMasters. “Thanks to this partnership, I look forward to watching our artists continue to build their careers on TikTok and beyond.”
UnitedMasters claims to work with more than 2 million independent artists, signaling its extensive reach within the music industry. In the joint press release announcing the deal, both TikTok and UnitedMasters emphasized their shared commitment to recognizing the commercial potential of music on platforms like TikTok, which presents substantial revenue and promotional opportunities for artists.
TikTok elaborated that its commercial music library offers artists “unparalleled access to the 70+ million brands on the platform, creating net new revenue and promotional streams for artists.” Additionally, the announcement highlighted that UnitedMasters facilitates numerous sync opportunities for its artists, forging partnerships with major brands and media outlets such as Diageo, Bose, Walmart, ESPN, Coca-Cola, IKEA, Dove, and many more.
The recent pivot away from re-licensing discussions with Merlin (of which United Masters is a member) results from TikTok's concerns regarding content quality control and fraudulent activities involving certain members. Earlier statements from a TikTok spokesperson to MBW emphasized that the platform “had operational challenges with Merlin in the past where music that is not quality controlled for copyright is delivered [to TikTok],” underscoring the urgency for direct dealings.
They further explained, “It presents a big burden, and doing direct deals allows us to exercise better control and also to forge closer relationships with Merlin members. TikTok must be able to control the quality of the content being uploaded to its platform, and to ensure that all content delivered is legitimate.”
Emphasizing the rationale behind this strategic shift, Ole Obermann, Head of Music Business Development at TikTok, clarified earlier this month that this decision “isn’t about bad blood with Merlin.” He stated, “By doing direct deals, if we detect any kinds of content copyright issues, we can address it directly. It’s that simple.”
Most recently, Obermann articulated his vision for the platform: “We want to make the world’s best music available to our global community of over a billion music fans. That’s why we are so excited to be entering into a direct deal with a prominent independent label like UnitedMasters, with its deep, diverse roster of independent artists. Together, we’re ready to amplify these voices and bring their music to a global stage, unlocking new opportunities for discovery.”
In conclusion, Steve Stoute reiterated the partnership's significance, stating, “Our partnership with TikTok provides UnitedMasters artists unparalleled access to a vast global audience, while TikTok creators and users gain early exposure to some of the most impactful independent music today. TikTok recognizes the power of music and creativity, which is why we are excited to formalize this partnership.”
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