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Downtown Music Holdings announced layoffs across the company’s CD Baby, Downtown Music Publishing, Songtrust, and Downtown Music Holdings (DMH) divisions on Wednesday (March 22).
Downtown Music Holdings chief executive Andrew Bergman emailed staff early Wednesday to share the news. Notably, many of the lay offs affect those working in publishing roles. Neither the email, which was obtained by Billboard, nor a company representative would confirm how many jobs were affected.
Bergman also noted in the email that there are also “a number of cost-saving measures… underway” already at Downtown apart from the reduction in team size. The Downtown rep also declined to explain what these measures were.
The email labels this downsizing as “reorganization” that “harmonizes the past several years of strategic investments and divestitures.” As detailed in a recent Billboard profile of the firm, Downtown pivoted from a traditional publishing firm with 145,000 songs in its catalog to selling off all intellectual property in favor of repositioning as a service-focused company instead.
To further bolster their service offerings, in the last few years Downtown acquired CD Baby, FUGA, AdRev, Soundrop and DashGo, and then last September announced the combination many of its B2B services under the name “Downtown Music.” Downtown Music now includes staff from FUGA, Downtown Neighbouring Rights, AdRev and Downtown Music Services artist, label services and publishing administration units.
In October, Billboard reported that Downtown’s CD Baby and Soundrop had laid off 28 employees, citing “economic conditions” and “uncertain times” in a company-wide email from chief people officer Love Whelchel.
“This reorganization harmonizes the past several years of strategic investments and divestitures, better positioning us for the future by aligning our talent, resources, technology and services to meet the evolving needs of the music community while at the same time taking into account this period of economic uncertainty,” said a Downtown rep in a statement.
Read the full email to Downtown Music Holdings’ staff below:
Team,
Today we’re sharing some difficult news with all of you. Downtown’s management team has made the decision to reduce the size of our team in certain areas of the organization, specifically CD Baby, Publishing, Songtrust and DMH. Later this morning, we will be meeting with those employees and informing them that their roles will be impacted.
Along with reducing our team size overall and a number of cost-saving measures we have underway, we hope to be able to offer and place some impacted members of our team in other positions within Downtown that will give them a chance to apply their skills and expertise in new ways.
This reorganization harmonizes the past several years of strategic investments and divestitures, better positioning us for the future by aligning our talent, resources, technology and services to meet the evolving needs of the music community while at the same time taking into account this period of economic uncertainty.
We are committed to continuing to communicate about our plans, our business performance, and the results of these changes and remain accountable to all of you for the improvements and the long-term health and strength of our work at Downtown.
Our management, people, operations, legal and communications teams have made every effort to manage this process with as much thoughtfulness, consideration and empathy as possible. We will be meeting with all of you in the coming days to share more directly, plans for each division and will be ready to answer any questions you may have.
Sincerely,
AB
Additional Reporting by Dan Rys
Self-styled “outsider” label Bad Habit has re-upped its joint venture deal with Atlantic Records as it expands its management activities and prepares an entry into the live music space.
The growing business has signed Bay Area rapper G-Eazy to its management arm, Billboard has learned, joining a Bad Habit roster that includes The Neighbourhood, Bakar and Dora Jar.
Additionally, Bad Habit is helming The Vigil, a two-day event taking place April 4-5 in Los Angeles at Masonic Lodge at Hollywood Forever Cemetery, and featuring headline performances from Jesse of The Neighbourhood (night one) and G-Eazy (night two). The Vigil bill also includes Yeek, EKKSTACY, Goody Grace, Fade Em All, Sam Austins and DJ Quinn.
Bad Habit was co-founded in 2015 by New Zealand-born industry veteran Kirk Harding and Nigerian-American producer and creative director Matthew “Baus” Adesuyan. “Following two back-to-back sold-out shows at the Hollywood Bowl in 2021,” with The Neighbourhood and Burna Boy, notes Adesuyan, “we felt inspired to create a platform for our artists to showcase their live sets and to kick-off festival season. We’ve started this year setting up some amazing projects on our management side with G-Eazy, Jesse, and Bakar, and we want to celebrate what’s to come.”
The Atlantic Records alliance is an extension of an arrangement initially struck in 2018. Soon after, the label’s frontline artist Burna Boy went on a tear.
The Nigeria-born Afrobeats artist (real name Damini Ogulu) is a superstar in the U.K., where he’s set to become the first African artist to headline a stadium concert, with a June 3 date at the 60,000-capacity London Stadium. He’s bagged nine top 40 hits in the U.K., including a No. 1 for 2019’s “Own It,” with Stormzy and Ed Sheeran. His sixth and latest studio album, Love, Damini, peaked at No. 2 on the Official U.K. Chart in July.
Career highlights include a Grammy Award for 2020’s Twice as Tall (best global music album), a headline show at New York’s Madison Square Garden in April, and sold-out dates at London’s Wembley Arena in November 2019 and at The O2 Arena in August 2021.
“Julie [Greenwald], Craig [Kallman], and the entire Atlantic team have been incredible partners in helping us bring artists to global stages,” comments Harding. “We greatly admire their shared passion for nurturing amazing talent and developing new voices. We look forward to continuing to grow our label roster with Atlantic”.
Nick Lachey will avoid any charges in connection with a paparazzi run-in last March in which the 98 Degrees singer confronted a photographer after she took a picture of him. People magazine reported that Lachey, 49, has been ordered to attend anger management classes and Alcoholics Anonymous meetings as part of a prefiling diversion program, citing a spokesperson for the Los Angeles County District Attorney’s Office.
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“Mr. Lachey has not been charged with misdemeanor assault and battery. Instead he is participating in LADA’s Prefiling Diversion program,” the LA DA’s office said in a statement. “As part of these conditions he must participate in anger management classes and attend Alcoholics Anonymous meetings. Successful completion of the Prefiling Diversion Program will result in no criminal charges being filed.”
At press time a spokesperson for Lachey had not returned Billboard‘s request for comment. According to reports at the time, Lachey reached into the photog’s car in March 2022 and attempted to grab her phone after he noticed her taking his picture. Writing on Twitter shortly after, Lachey said he’s been “harassed” while walking back to his hotel after dinner with wife Vanessa Lachey and their friend.
“Last night, after enjoying a great dinner with my wife and our dear friend, the paparazzi harassed us as we walked back to our hotel,” he wrote. “I clearly overreacted. I’ve been in this game long enough to know that their antics are sadly part of the deal. Stupid of me. Done.”
In a follow-up tweet, Lachey denied getting violent. “However, for TMZ or anyone else to say that I was violent or that I ‘got physical’ with someone is reckless and absolutely false.” TMZ posted video of the alleged incident at the time, in which Lachey walks toward the car and confronts a woman inside, asking, “is paparazzi still a thing?,” before appearing to reach into the car to take her phone and then turning around, sticking out his tongue and walking away.
Accounting and consulting firm Armanino is adding two veteran music industry organizations to its portfolio, beginning April 1: music business management company Blue Sky Group and rights and royalty auditing firm Royalty Compliance Organization. Terms of the deals were not disclosed.
Blue Sky Group, led by Harlan Hallet and Steven McMillan, and Royalty Compliance Organization, led by Wayne Coleman and Darla Crain, will give Armanino a pair of eight-person staffs steeped in business management experience, royalty compliance, valuation services and litigation support. Hallet began his career as a staff accountant at a business management firm in 1975. His Hallet and Associates was founded in 2004 and folded into Blue Sky Group in 2014. Coleman’s experience in music audits started in 1971 working with country legend Johnny Cash.
“I found Cash some cash,” says Coleman. “He paid me some cash. I thought this was a good business to be in.”
Armanino, one of the 20 largest accounting firm in the U.S., specializes in tax, audit and business management and has more than 2,000 employees in offices around the country. With the two acquisitions, Armanino has about 150 people in its business management group in New York and Los Angeles in addition to Nashville-based Blue Sky Group and St. Louis-based Royalty Compliance Organization, says Craig Manzino, partner, business management at Armanino.
To Manzino, the two new additions better situates Armanino for a music industry where artists can increasingly remain independent but need teams to navigate a complex business. “That idea of breaking away from the majors and doing things on your own as an artist requires a bigger team behind you,” he says. “For us to be able to fulfill that circle of needs around an artist was really important.”
Nashville was a desired location for expansion, according to Manzino. When Hallet moved to Nashville more than two decades ago, “it was just country music,” he says. Today, the genres have expanded beyond country music and many companies have expanded their back-office functions to Nashville from more costly markets. That led Blue Sky Group to get “an array of personnel here dealing with entertainment,” says Harlan, but it’s also made it harder for a smaller firm to lure employees. He believes that partnering with Armanino will help Blue Sky Group attract talent in the hot job market.
“If we think larger in terms of the entertainment industry, these people are becoming brands,” says Manzino. “They’re getting into fashion, not-for-profits, social impact, liquor brands, private donations. To be able to serve people at this level, you can’t be a one-trick pony. You need to provide a full suite of services.”
Generation Z is driving the industry, he says, and smaller firms “aren’t able to offer a lot of the things that this generation wants.” That includes musicians and athletes setting up private foundations to give money to the school districts in their home towns or creating a private foundation for a non-profit. “Being a B Corp” — a certification for a business that meets standards on performance, accountability and transparency on factors ranging from employee benefits to charitable giving — “I think we’re really appealing to our staff and our clients.”
UTA has officially set up shop in Atlanta.
Along with its partner company KLUTCH Sports Group, the agency opened its new Atlanta bureau Wednesday (March 22) to extend its ability to discover and serve artists, athletes, musicians and brands in the region. Steve Cohen, Rob Gibbs and Arthur Lewis will serve as co-heads of the new office.
“Atlanta is an entertainment and cultural hub, and planting our flag here gives us the ability to support clients with investments and opportunities across the city’s growing creative ecosystem,” said Cohen and Gibbs in a joint statement.
UTA will offer representation in Atlanta across its multitude of divisions, including music, sports, film, television, digital talent, marketing, gaming, fine arts and more. This includes advising top global brands based in the Southeast on a range of growth initiatives, including ways to partner with the creative community.
“Atlanta is a vibrant city for music, sports and arts, and there is a ripe opportunity to create another center of gravity for film and television,” said UTA CEO Jeremy Zimmer in a statement. “We are excited to bring our full range of services to the community of talented artists, athletes, musicians and creators who call the Southeast their home.”
The new office is located at 1401 Peachtree Street in Midtown Atlanta and occupies nearly 20,000 square feet across three floors. It was designed by the firm Hastings Architecture, which also designed UTA’s office in Nashville.
The Atlanta bureau will additionally feature a fine art gallery called The UTA Artist Space to showcase programming from the Atlanta art community and across UTA’s global fine arts roster. The inaugural show will feature Atlanta-based artist and musician Lonnie Holley in the first exhibition of his work in the city in over 10 years. Entitled “The Eyes Were Always on Us,” the exhibition will feature sculptures constructed from found materials in the tradition of African-American sculpture. The gallery is open to the public Tuesday through Friday from 10 a.m. to 5 p.m. and Saturday from 11 a.m. to 4 p.m.
UTA also boasts offices in Beverly Hills, Nashville, New York, Chicago and London.
LONDON — An eighth consecutive year of growth is undoubtedly great news for the music business — especially for anyone who worked in the industry during the near-decade of decline brought on by rampant piracy and falling CD sales. But this year’s IFPI “Global Music Report” also demonstrates a slowing rate of growth across all formats and in nearly all established markets.
Here are five takeaways from this year’s report:
Growth Slows Down
Total recorded music revenues climbed to $26.2 billion, up 9% in 2022, which, although impressive, is half of 2021’s growth, when revenues were up 18.5%. Paid-for streaming subscription revenue rose 10.3% to $12.7 billion in 2022, compared with a 21.9% year-on-year jump in 2021.
Total streaming (including paid subscription and advertising-supported) was up 11.5% to $17.5 billion, versus a rise of 24% the prior year.
Physical format revenue climbed 4%, compared to 16% in 2021, while music sales in the world’s three biggest markets — the United States, Japan and United Kingdom — all grew by around 5% last year, compared with double-digit gains for the U.S. and U.K. in 2021 (+22.6% and +13.2% respectively) and a rise of 9.3% in Japan.
IFPI attributed the slowing to 2021’s exceptional growth, which it said was partly fueled by a post-pandemic bounce back in music consumption, and execs at a London launch event Tuesday said they were confident the market was not about to plateau.
“I do think there are pockets of established markets where there is an opportunity to grow,” said Simon Robson, head of Warner Music Group’s international recorded music operations outside the U.S. and the U.K. He cited France as a major music market where streaming subscription penetration rates remain under 20%. “The challenge for today is how we better monetize other forms of music consumption,” he added, noting that “it would help if music subscription pricing could reflect the realities of inflation, which, as we’ve seen with video streaming services, have been putting up their prices quite significantly.”
When Robots Take Over
The future role that artificial intelligence (AI) will play in the record business was raised several times at the London launch event, with executives keen to highlight the technology’s potential for commercial growth, as well as some of the risks and challenges it brings. Some executives saw potential benefits in using AI to better analyze and understand fan engagement trends and artist discovery (something which platforms and music companies are already doing) and optimizing technical aspects of music production, including immersive sound.
On the flip side, execs issued a stark warning about human artistry being devalued at the expense of technology. AI developers, they said, could fail to respect the rights of creators by using artist recordings to generate new content without authorization – a threat that Michael Nash, executive vp, chief digital officer at Universal Music Group, said he placed “at the top” of industry issues that need to be addressed. “We need to work very hard to define new models so that we can enable generative AI without looking away from what is essentially going to be wholesale hijacking of the intellectual property of the entire creative community,” wrote Nash in IFPI’s “Global Music Report” document.
Streaming May Dominate, But Physical Is Far From Dead
Having enjoyed a post-pandemic renaissance in 2021 — when sales of CDs increased for the first time this millennium and overall physical sales grew 16.1% — physical format revenue continued to be surprisingly resilient last year, rising 4% to $4.6 billion. It was the second consecutive year of growth for the format, once considered dead. Almost half (49.8%) of those global revenues came from Asia, where the humble CD remains a popular music purchase, particularly in South Korea and Japan, the region’s largest music market and world’s second biggest behind the U.S.
Vinyl revenues’ upward trajectory also continued, rising 17.1% over 2021, and while global CD sales slipped 0.4% year-on-year (IFPI didn’t provide financial values for CD or vinyl income), physical revenues still accounted for 17.5% of the overall recorded music market last year. That’s just under what ad-supported streams generate for labels and rights holders (representing 18.7% of global sales) and more than the combined haul from sync, performance rights and digital downloads.
All Eyes Turn Towards Africa
Sub-Saharan Africa overtook the Middle East and North Africa as the fastest growing region in 2022, with music sales rising almost 35% year-over-year, reports IFPI. Driving that growth was South Africa’s thriving music industry, Africa’s biggest market, which climbed by more than 31% last year, compared to modest 2.4% growth in 2021.
Nevertheless, the challenge of converting users of ad-based music services to paid subscription remains a considerable one, said Temi Adeniji, president of Warner Music Africa, with South Africa having around 4 million paid subscribers out of a population of nearly 50 million people. Adeniji said the burgeoning global popularity of Amapiano, a genre which originated in South Africa, was already producing crossover hits in markets like Nigeria. She predicts “an infusion of Amapiano elements” into other international music scenes over the next few years to further drive the region’s development as a key music territory.
China Climbs to Become a Top-Five Music Power
For years, music executives have talked up China — the world’s most populous country, home to 1.4 billion people, according to China’s National Bureau of Statistics – as a huge music market in waiting. In 2022, that potential was finally realized with China usurping France (a long-time mainstay in the upper echelons of the world music market rankings) as the fifth-biggest music market worldwide with revenues of $1.2 billion, up 28.4% year-on-year, according to IFPI. That’s on the back of 30% growth in 2021, when China was the world’s sixth-biggest music market.
The dominance of local streaming services QQ Music, Kugou Music, Kuwo Music, which are all owned by China-based Tencent Music Entertainment (TME, which publishes Billboard China), means that Western and international acts rarely feature on China’s many of domestic charts, which includes some run by China’s state-owned broadcaster. But the popularity of domestic pop stars like Jay Chou, Yisa Yu, Mao Buyi, Zhou Shen and Jackson Wang is now rapidly driving subscription take up in a country rife with piracy on a decade ago. TME’s most recent company filings report 85.3 million paying music users as of the third quarter of 2022.
Everydaydreamer, a purpose-driven creative studio specializing in music video/content commissioning and creative direction/production, is launching a new workshop series specifically for women and non-binary people of color, the company tells Billboard.
Dubbed SheMadeIt, the music video and content director workshop aims to “challenge the status quo in this field” and “make the entertainment industry a more equitable space,” according to a press release. The workshop series will offer intensive experiential opportunities, educational seminars and networking for underrepresented voices to gain access to mentorship and work opportunities. SheMadeIt is launching the series in partnership with Kids of Immigrants, Above Ground, Nowhere, Merman and Youth Mentoring Connection.
“There is a real need for new entry points for underserved and underrepresented talents to be showcased in the directorial and content space,” said Everydaydreamer and SheMadeIt founder Shadeh Smith in a statement. “We have gathered some of the most experienced, talented and respected creative professionals in this field, all with the collective commitment to cultivate new, burgeoning talent. Ultimately, we are dedicated to re-shaping the entertainment industry to be a space of equity, inclusion, and representation for all artists, especially those who aren’t given adequate access to the resources and platforms they need to thrive.”
Courtesy Photo
The first SheMadeIt workshop will take place in Los Angeles from April 28-30 and feature industry panels, practical assignments and access to long-term opportunities for 10 participants(applications will be available here starting Friday, March 24). Additional series are set to take place in London and New York, with details to be announced soon.
Panelists and mentors confirmed for the Los Angeles workshop include Kehlani (artist), Diallo Marvel (global creative director, Beats), Alex Thurmond (creative director), Alli Maxwell (executive producer, Somesuch Productions), Devon Libran (senior vp, Republic Records) Laura Tunstall (managing partner, Nowhere), Daniel Buezo (CEO, Kids of Immigrants), David Ali (CEO, Above Ground and artist manager), Ana Julfayan (executive producer), Kevin Kloeker (vp of creative & content development, Capitol Records), Kira Carstensen (managing partner, Merman), Dani Edgren (creative producer), Anna Heinrich (executive producer, Obsidian), Zsuzsa Cook (artist manager), Karine Benzaria (producer/writer), Emmanuelle Cuny (senior vp/head of visual creative & production, Motown Records), Byron Atienza (creative director) and Monica Kran (talent partnerships).
Full entry requirements and applications are available at www.everydaydreamer.co/shemadeit.
John Sebastian‘s songwriter interest in The Lovin’ Spoonful catalog has been acquired by AMR Songs, a music asset investment firm and music company that’s been quietly scooping up rights for the last two years. AMR also purchased all rights from Sebastian’s solo catalog, as well as the master recording catalog of reggae band Soja, among other investments.
Terms of the deals were not disclosed.
AMR is led by former Billboard editorial director Tamara Coniff, the firm’s founder and CEO, and private equity veteran Steve Reinstadtler, who is CFO. According to sources, the firm has raised $100 million from institutional investors. In addition to acquiring all forms of music royalties, AMR will also sign developing songwriters and work closely with established writers.
The Sebastian deal includes the writer share of his Lovin’ Spoonful catalog, including “Summer in the City,” “Do You Believe in Magic,” “Daydream,” “Younger Girl,” “You Didn’t Have to Be So Nice,” “Did You Ever Have to Make Up Your Mind?” and “Nashville Cats.” It also encompasses the publishing and writer share from his solo career, including the song “Welcome Back,” as well as artist royalties from his band and solo work.
“AMR’s involvement in my catalog, and specifically the enthusiasm I’m feeling from Tamara Conniff about this material, will ensure that my songs will keep singing for a good long time,” Sebastian said in a statement.
Conniff has more than 20 years of experience in music publishing. She began by managing the interests of her late father, band leader Ray Conniff, and has also held executive positions in music publishing, including as executive vp of Roc Nation Music Publishing and COO of Artist Publishing Group. Reinstadtler’s prior experience includes serving as co-head of TD Capital and as a partner in SR Capital Advisors.
“I’m ecstatic to announce the launch of AMR Songs and fully realize our vision of building a truly creative home for our artists and writers — not just acquiring rights, but proactively nurturing and marketing catalogs, signing and developing artists with frontline operations,” Conniff said in a statement. “We’ve established a stellar film and TV sync licensing team, label distribution and digital marketing support to uniquely foster new opportunities and revenue growth for our roster and catalogs.”
AMR’s team also includes Lydia Yerrick, vp of business affairs and administration, and Justin Mandel, manager of social media and royalty analysis, as well various consultants. Additional staff will be announced soon, the company said.
The AMR catalog, which numbers 1,500 songs and growing, is administered by Warner Chappell Music.
AMR’s investment in Soja’s catalog spans from the band’s inception through 2020 and covers music publishing, artist royalties and various master recordings, including the albums Born In Babylon, Strength to Survive and Amid the Noise and Haste.
“We’re passionate about the music and incredibly proud to represent and take care of these amazing works, ensuring they are exposed to new audiences for generations to come,” Conniff adds in a statement.
Other investments include the writer share of funk guitarist Ronald “Kat” Spearman’s song catalog, including Jade’s “Don’t Walk Away”; John Boylan’s producer share, which includes the first Boston album; and the publishing rights of Taylor Philips — namely Luke Combs‘ “Hurricane” and Kane Brown’s “Homesick.”
Beyond that, AMR has signed a global music publishing deal with producer and writer Erik Janson. It is also launching its own label, AMR Songs, and has signed Australian artist EJ Worland to both a recording and publishing deal.
Conniff notes that AMR is “agnostic about which rights we will buy” going forward, adding that the company has an eye on niche genres because each has its own ecosystem and brand of dedicated fans. “Reggae, rock, Christian and jazz fans are not fickle,” she says.
Live Nation has acquired a majority interest in Clockenflap, the Hong Kong-based event organizer behind the flagship Clockenflap festival.
Financial terms weren’t disclosed in the arrangement, announced just days after Clockenflap Music and Arts Festival made a triumphant return to the city, following a four-year hiatus.
Held from March 3-5 at Hong Kong’s Central Harbourfront Event Space, the 2023 fest featured performances from Arctic Monkeys, Balming Tiger, Bombay Bicycle Club, The Cardigans, Wu-Tang Clan and more.
Organizers posted the “sold out” sign prior to the most recent edition, which boasted a 30,000 per-day capacity, before announcing a second 2023 fest would be held Dec. 1-3.
Founded in 2008, Clockenflap is one of Asia’s highest-profile festival brands, and certainly HK’s premier contemporary music event.
According to a statement issued Wednesday (March 22), the Clockenflap team will continue to curate, manage and produce its festivals and events, though now with access to LN’s festival portfolio and resources.
“The Live Nation team share our vision for Clockenflap being one of the best city festivals in the world,” says Justin Sweeting, co-founder and music director of Clockenflap, “and with Live Nation’s support and resources, I’m excited for the future of the festival.”
By teaming up with LN, adds Mike Hill, co-founder and managing director of Clockenflap, “we can continue to grow the festival and expand our event activities in Hong Kong and regionally.”
Clockenflap also produces concerts in HK under the brand Clockenflap Presents, including recent sold-out shows for Cigarettes After Sex and Honne.
“Partnering with Clockenflap further demonstrates that Live Nation is committed to bringing world-class festivals and live entertainment experiences to Hong Kong fans,” explains Roger Field, Melbourne-based president of Live Nation Asia Pacific.
Through LN’s global network, Field continues, “we will enhance and grow the Clockenflap brand and deliver new and exciting live opportunities to the region.”
HK’s live music scene is said to be blooming, in part due to the scrapping of hotel quarantine restrictions for international visitors and a cooling in tensions between pro-Democracy protestors and the Chinese police forces, which led to the cancelation of the 2019 event.
TikTok CEO Shou Zi Chew posted an urgent video on the app on Tuesday (March 21) that aimed to demonstrate how ingrained TikTok is in the lives of more than 150 million Americans at a time when the app is under threat of being banned (again).
Chew is set to testify before the House Committee on Energy and Commerce on Thursday. His appearance comes as politicians and regulators repeatedly express concern that TikTok and its Chinese parent company, ByteDance, will turn user data over to the Chinese government. (TikTok has repeatedly denied these allegations.) Earlier this month, TikTok said the U.S. government had asked Bytedance to sell the app or face a ban, according to The Wall Street Journal.
Chew’s video started out celebratory and seemed couched in terms straight out of U.S. political debates, emphasizing the app’s reach and its potential economic impact. “I’m super excited to announce that more than 150 million Americans are on TikTok,” Chew said. The app had previously touted 100 million U.S. users in 2020. (It has over 1 billion active users globally.)
“That’s almost half the U.S. coming to TikTok to connect, to create, to share, to learn, or just to have some fun,” Chew continued. “This includes 5 million businesses that use TikTok to reach their customers. And the majority of these are small and medium businesses.”
@tiktok Our CEO, Shou Chew, shares a special message on behalf of the entire TikTok team to thank our community of 150 million Americans ahead of his congressional hearing later this week. ♬ original sound – TikTok
But this triumphant tone quickly gave way to a warning. “Some politicians have started talking about banning TikTok,” Chew added. “This could take TikTok away from all 150 million of you.” He called this a “pivotal moment” for the app and asked users to leave comments noting “what they love about TikTok” so he could pass those on during his meetings in Washington, D.C.
The U.S. government’s scrutiny of TikTok is not new; President Trump threatened to ban the app back in 2020. (India did ban the app that year.) TikTok has been in lengthy talks with the Committee on Foreign Investment in the United States to try to come up with a solution that allays fears about the way it handles users’ data, but these negotiations appear to have made little headway. The U.S. government recently banned TikTok from all federal devices.
TikTok spokespeople have described the threat of a larger ban as “little more than political theater.”
“If protecting national security is the objective, divestment doesn’t solve the problem,” a spokeswoman for TikTok told The Associated Press earlier this month. “A change in ownership would not impose any new restrictions on data flows or access.”