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As the showdown continues between Universal Music Group (UMG) and TikTok after the world’s biggest record company pulled content by its artists and songwriters from the video-hosting social media site, it seems as though the ban has created a window of opportunity for independent music acts.
A look at the upper echelon of Billboard‘s TikTok Top 50 chart shows that most of the top 20 entries on the chart are independent recordings, including Dasha’s breakthrough “Austin,” Mitski’s “My Love Mine All Mine,” Djo (a.k.a. actor/musician Joe Keery)’s “End of Beginning,” and even Bobby Caldwell’s 1979 song “What You Won’t Do For Love.” Prior to UMG’s TikTok ban, independent artists, music from independent artists already made up a significant portion of the TikTok 50 chart, which debuted in September 2023, but without UMG artists’ or songwriters’ works on the platform — which by Billboard‘s recent estimates affects more than 60% of the most popular songs in the United States — the pathway to success seems more clear than ever.
However, top independent music executives have a message for artists in the sector: “Not so fast.”
Trending on Billboard
As UMG’s ban drags on, independent music executives are advising artists to look at the bigger picture — and also to use this as an opportunity to look at what rights they do and don’t control.
“I truly hope we don’t do what we so often do in the music industry, which is say, ‘Oh, this is an opportunity for me to get a bit of an advantage,’ and then take the advantage, but ultimately damage the ecosystem,” says Richard James Burgess, president/CEO of the American Association of Independent Music (A2IM). “I think we are sort of at a critically bad state, in terms of the amount of money that’s being paid through [to artists]. That works out fine if you’re an aggregator, distributor or label, and you’ve got enough copyrights. But it’s extremely difficult for the artist to generate enough copyrights to make a living from if someone’s not a household name.”
Burgess continues, “TikTok is an extremely bad actor in terms of the types of deals they do and the structure of their deals. It’s almost like trying to play the lottery — if you get a viral TikTok, it can have an impact on your sales, but how much money does TikTok make from us trying to get that sort of viral spike? They should be paying for the use of music and they’re effectively not paying. I think Universal did a great thing here, and my membership, my board, supports that position.” (A rep for TikTok has declined to comment for this story).
In a 2022 Billboard story, one executive from an independent label noted that artists on his roster earned approximately $150 from TikTok from around 100,000 videos that were made with their music. Meanwhile, in the same report, a marketer who spearheaded a campaign for a music single that was used in approximately half a million TikTok videos noted that his artist earned less than $5,000 from TikTok, though views rose into the billions.
While there are opportunities for increasing numbers of independent artists to gain greater traction on TikTok during the platform’s impasse with UMG, “it’s important for artists to use the opportunity to focus on their own art instead of chasing trending sounds or being the one-millionth person to cover a hit song,” says Jody Whelan of independent record label Oh Boy Records, which was founded in 1981 by the late singer-songwriter John Prine and which now represents music from Prine, Kelsey Waldon and Arlo McKinley, among others. “If you’re lucky enough to go viral on TikTok, you want folks to stick around to hear what you have to say.”
For many contemporary acts, TikTok is a key component of their marketing plans, with labels and managers urging artists to create content in hopes of driving listeners to streaming platforms. A 2023 report, commissioned by TikTok and facilitated by Luminate, noted that 62% of U.S. TikTok users pay for a music streaming service, compared to 43% of all consumers.“TikTok user engagement metrics are strongly associated with streaming volumes,” in the United States, the report stated. “In other words, higher TikTok engagement — whether that’s likes, views or shares — corresponds with elevated streaming volumes.” The report also noted that TikTok users are more engaged with other areas of music-related consumption, claiming that in the United States, 45% of TikTok users purchased music-related merch over a year-long span, compared with 35% of overall music listeners, while 38% of TikTok users attended a live music event during the year, compared to 33% of overall music listeners.
Even with stats like these, Whelan says the TikTok/UMG battle should serve as a cautionary tale to realize how even so-called independent artists can get caught in the ban’s web because of an affiliation with UMG or UMPG. “This should also serve as a reminder to the independent community: You can’t rely on someone else’s platform to reach your audience,” Whelan says. “This month it’s UMG, next month it could be your distributor. The algorithms and priorities of social media companies and the streamers continuously shift. You have to be able to control the means in which you communicate directly with your audience, whether that’s by email or by text (we also still send out postcards to our fans!).”
Stem CEO Milana Lewis agrees, seeing the situation as a “great moment to highlight the difference between independence and autonomy. Artists believe they’re independent when they do a deal with the independent distribution arm of a major label because their deal terms might be more flexible. In reality, they still have very little control over their rights, and this is a great example of how a big corporation is deciding on their behalf whether or not their music is available on a platform and whether or not they are willing to trade off earnings for exposure.”
Independent artists should be taking this time to examine their relationships with all social media and make sure they are taking full advantage of each platform despite TikTok’s current dominance, says Seth Faber, Stem’s general manager of music distribution and payments. “Time will tell if Universal’s maneuver will lead to a meaningful redistribution of the viral pie. In the meantime, artists should continue to lean into the full landscape of snackable content,” Faber says. “The power of Instagram’s Reels, Spotify’s Clips and YouTube’s Shorts aren’t to be ignored. Diversify those content portfolios.”
For Burgess, UMG vs. TikTok is a repeat of an age-old battle pitting the industry against artists, with artists often coming out on the short end of the stick. “[TikTok] plays this promotional exposure-discovery game. How many times do we get sucked into that?” Burgess asks. “Radio hasn’t paid [artists] for recorded music. MTV didn’t pay. We keep making the same mistakes. Good thing is that Universal is big enough, and especially with the publishing and everything, the tendrils from that go far and wide.”
Burgess further likens the UMG-TikTok battle with the ongoing battle with secondary ticket markets, saying that most of the money is not making its way to artists. “That is the essence of the problem,” he says. “It would be good if people did the right thing here and stood together to get a better deal for everybody.”
Former Treasury Secretary Steven Mnuchin said Thursday that he will put together an investor group to buy TikTok after the House passed a bill that would ban the popular video app in the U.S. if its China-based owner does not sell its stake.
During an interview on CNBC’s “Squawk Box,” Mnuchin, who served under President Donald Trump, said he had spoken “to a bunch of people” about creating an investor group that would purchase the popular social media company. He offered no details about who may be in the group or about TikTok’s possible valuation.
“This should be owned by U.S. businesses,” Mnuchin said. “There’s no way that the Chinese would ever let a U.S. company own something like this in China.”
Trending on Billboard
TikTok did not immediately respond to a request for comment.
The House bill, passed by a vote of 352-65, now goes to the Senate, where its prospects are unclear. Lawmakers in the Senate have indicated that the measure will undergo a thorough review. If it passes in the Senate, President Joe Biden has said he will sign it.
House lawmakers acted on concerns that TikTok’s current ownership structure is a national security threat. Lawmakers from both parties and administration officials have voiced concerns that TikTok’s parent company, ByteDance, could be compelled by Chinese authorities to hand over data on American users, spread pro-Beijing propaganda or suppress topics unfavorable to the Chinese government.
TikTok, for its part, has long denied that it could be used as a tool of Chinese authorities. The company insists it has never shared U.S. user data with the Chinese government and will not do so if asked. To date, the U.S. government also has not provided evidence that shows TikTok shared such information with authorities in China.
The White House had no immediate reaction Thursday to Mnuchin’s potential bid for TikTok.
“We’re still focused on continuing to work, providing some technical support and assistance to Congress, as this bill, which just passed the House, moves on to the Senate,” White House national security spokesman John Kirby said when asked about whether the Mnuchin consortium could assuage the administration’s national security concerns about TikTok.
“There is an ongoing legislative process for that. We obviously want to see the Senate take it up swiftly and we’re focused on making sure we’re providing them the context and information we believe is important so that this bill can actually do and address the national security concerns that we have with respect to TikTok.”
The fight over the platform takes place as U.S.-China relations have shifted into strategic rivalry, especially in areas such as advanced technology and data security, seen as essential to each country’s economic prowess and national security.
If passed and signed into law, the House bill would give ByteDance 180 days to sell the platform to a buyer that satisfies the U.S. government. It would also require the company to give up control of the TikTok algorithm that feeds users videos based off their preferences.
In addition to Mnuchin, some other investors, including “Shark Tank” star Kevin O’Leary, have voiced interest in buying TikTok’s U.S. business. But experts have said it could be challenging for ByteDance to sell the platform to a buyer who could afford it in a few months.
Big tech companies are best positioned to make such a purchase, but they would likely face intense scrutiny from antitrust regulators, which Mnuchin emphasized.
“I don’t think this should be controlled by any of the big U.S. tech companies. I think there could be antitrust issues on that,” he said during the interview. “This should be something that’s independent so we have a real competitor. And users love it, so it shouldn’t be shut down.”
He also said the app would need to be rebuilt in the U.S. with new technology.
In many ways, social media companies have become battlegrounds for partisan disagreements about how to control disinformation while protecting free speech. Mnuchin’s effort to buy TikTok comes as Trump and his allies have long complained about what they see as social media muzzling conservative voices.
Trump himself has voiced opposition to the House bill, saying that a ban on TikTok would help its rival, Facebook, which he continues to lambast over his 2020 election loss. Some other Republicans who oppose the bill say the U.S. should simply tell Americans about the security concerns with TikTok, but let them decide if they want to use the platform.
Meanwhile, some Democrats have expressed concern about singling out one company when other social media platforms also collect vast amounts of data on users. Opponents of the bill also say it would disrupt the lives of content creators who rely on the platform for income and run afoul of the First Amendment, which protects free speech.
This isn’t the first time a TikTok sale has been in play.
When Mnuchin was Treasury secretary, the Trump administration brokered a deal in 2020 that would have had U.S. corporations Oracle and Walmart take a large stake in TikTok on national security grounds.
The deal would have also made Oracle responsible for hosting all TikTok’s U.S. user data and securing computer systems to ensure national security requirements are satisfied. Microsoft also made a failed bid for TikTok that its CEO, Satya Nadella, later described as the “strangest thing” he had ever worked on.
Instead of congressional action, the 2020 arrangement was in response to a series of executive actions by Trump targeting TikTok.
But the sale never went through for a number of reasons. Trump’s executive orders got held up in court as the 2020 presidential election loomed. China also imposed stricter export controls on its technology providers.
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Source: Anna Moneymaker / Getty / TikTok
Content creators might want to start working on their Instagram Reels skills after the GOP-controlled House of Representatives passed a bill that could end TikTok’s run in the United States.
In a rare act of bipartisanship, the House agreed on a measure calling for TikTok’s owner, the Chinese-owned company ByteDance, to divest the TikTok app or risk a US ban.
The bill passed with an eye-opening 352-65 vote and one member voting present, but it still faces uncertainty when it reaches the Senate.
Per CNBC:
The legislation, dubbed the Protecting Americans from Foreign Adversary Controlled Applications Act, was introduced March 5 by Reps. Mike Gallagher, R-Wis., and Raja Krishnamoorthi, D-Ill., of the House Select Committee on the Chinese Communist Party. Two days later, House members on the Energy and CommerceCommittee voted unanimously to approve the bill, which refers to TikTok as a threat to national security because it is controlled by a foreign adversary.
The bill now heads to the Senate where it faces an uncertain future as senators appear divided about the legislation, and other federal and state-led efforts to ban TikTok have stalled.
TikTok Repsonds To The Bill Passing The Senate
As expected, the folks at TikTok were not happy about the developments.
“This process was secret, and the bill was jammed through for one reason: it’s a ban,” a spokesperson for TikTok said after the vote was passed. “We are hopeful that the Senate will consider the facts, listen to their constituents, and realize the impact on the economy, 7 million small businesses, and the 170 million Americans who use our service.”
President Joe Biden has already expressed that he will sign the bill if it reaches his desk. Ironically, President Biden has an official TikTok account that his administration created in February as part of his re-election campaign.
White House press secretary Karine Jean-Pierre said the administration would provide “technical support” in crafting the bill and noted in a March 6 briefing, “It’s on legal standing, and it’s in a place where it can get out of Congress, then the President would sign it.”
The House claims the bill “does not ban TikTok” and demands ByteDance to divest from TikTok within 6 months” “to remain available in the United States.”
If the bill passes its final hurdle and gets Biden’s signature, Apple, Google, and other internet-hosting companies can no longer support TikTok or any other ByteDance apps.
Donald Trump Thinks He’s Slick
While most lawmakers agree that TikTok threatens the country’s national security, Republican presidential nominee Donald Trump feels otherwise.
In an interview with CNBC, he claims that getting rid of TikTok would only make Facebook and Instagram’s owner Meta more powerful.
“Without TikTok, you can make Facebook bigger, and I consider Facebook to be an enemy of the people,” Trump claims.
His comments are hypocritical because, in 2020, he signed an executive order banning TikTok and WeChat “transactions” and eventually giving his approval of a $10 billion and $30 billion acquisition involving Microsoft that eventually fell through.
The Biden Administration would revoke his executive orders.
Content Creators Are BIG MAD
Content Creators are BIG MAD about the ruling and were present at Capitol Hill to let lawmakers know that this ban will affect their livelihoods.
Social media is also reacting to the news, and can’t believe the only thing lawmakers can agree on is that allowing a company possibly owned by the Chinese communist party company access to your data is bad, while other pressing issues like the minimum wage, “border crisis,” inflation, which is cooling, but still high in some areas due to various reasons, health care remains unsolved.
Remember that the GOP controls the House of Representatives and decides what bills come to the floor.
Just saying.
Anyway, TikTok has even reached out to its followers in anticipation of the bill passing the House.
We shall see if the Senate agrees with the House on the matter; there is no guarantee that this will happen.
You can see more reactions to TikTok’s possible banning below.
2. Howling
3. Fair question. But lets direct this question to the Republicans in the House who think thoughts and prayers are effective gun control measures.
4. They can always bring the content to Instagram Reels
5. Damn, we are doomed.
6. The TikTok debate has been going on since 2020. So we can’t say this accurate.
7. We’re not opposed to Trump being banned.
8. He is singing a different tune, so maybe they already did.
The House on Wednesday passed a bill that would lead to a nationwide ban of the popular video app TikTok if its China-based owner doesn’t sell, as lawmakers acted on concerns that the company’s current ownership structure is a national security threat.
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The bill, passed by a vote of 352-65, now goes to the Senate, where its prospects are unclear.
TikTok, which has more than 150 million American users, is a wholly owned subsidiary of Chinese technology firm ByteDance Ltd.
Trending on Billboard
The lawmakers contend that ByteDance is beholden to the Chinese government, which could demand access to the data of TikTok’s consumers in the U.S. any time it wants. The worry stems from a set of Chinese national security laws that compel organizations to assist with intelligence gathering.
“We have given TikTok a clear choice,” said Rep. Cathy McMorris Rodgers, R-Wash. “Separate from your parent company ByteDance, which is beholden to the CCP (the Chinese Communist Party), and remain operational in the United States, or side with the CCP and face the consequences. The choice is TikTok’s.
House passage of the bill is only the first step. The Senate would also need to pass the measure for it to become law, and lawmakers in that chamber indicated it would undergo a thorough review. Senate Majority Leader Chuck Schumer, D-N.Y., said he’ll have to consult with relevant committee chairs to determine the bill’s path.
President Joe Biden has said if Congress passes the measure, he will sign it.
The House vote is poised to open a new front in the long-running feud between lawmakers and the tech industry. Members of Congress have long been critical of tech platforms and their expansive influence, often clashing with executives over industry practices. But by targeting TikTok, lawmakers are singling out a platform popular with millions of people, many of whom skew younger, just months before an election.
Opposition to the bill was also bipartisan. Some Republicans said the U.S. should warn consumers if there are data privacy and propaganda concerns, while some Democrats voiced concerns about the impact a ban would have on its millions of users in the U.S., many of which are entrepreneurs and business owners.
“The answer to authoritarianism is not more authoritarianism,” said Rep. Tom McClintock, R-Calif. “The answer to CCP-style propaganda is not CCP-style oppression. Let us slow down before we blunder down this very steep and slippery slope.”
Ahead of the House vote, a top national security official in the Biden administration held a closed-door briefing Tuesday with lawmakers to discuss TikTok and the national security implications. Lawmakers are balancing those security concerns against a desire not to limit free speech online.
“What we’ve tried to do here is be very thoughtful and deliberate about the need to force a divestiture of TikTok without granting any authority to the executive branch to regulate content or go after any American company,” said Rep. Mike Gallagher, the bill’s author, as he emerged from the briefing.
TikTok has long denied that it could be used as a tool of the Chinese government. The company has said it has never shared U.S. user data with Chinese authorities and won’t do so if it is asked. To date, the U.S. government also has not provided any evidence that shows TikTok shared such information with Chinese authorities. The platform has about 170 million users in the U.S.
The security briefing seemed to change few minds, instead solidifying the views of both sides.
“We have a national security obligation to prevent America’s most strategic adversary from being so involved in our lives,” said Rep. Nick LaLota, R-N.Y.
But Rep. Robert Garcia, D-Calif., said no information has been shared with him that convinces him TikTok is a national security threat. “My opinion, leaving that briefing, has not changed at all,” he said.
“This idea that we’re going to ban, essentially, entrepreneurs, small business owners, the main way how young people actually communicate with each other is to me insane,” Garcia said.
“Not a single thing that we heard in today’s classified briefing was unique to TikTok. It was things that happen on every single social media platform,” said Rep. Sara Jacobs, D-Calif.
Republican leaders have moved quickly to bring up the bill after its introduction last week. A House committee approved the legislation unanimously, on a 50-vote, even after their offices were inundated with calls from TikTok users demanding they drop the effort. Some offices even shut off their phones because of the onslaught.
Lawmakers in both parties are anxious to confront China on a range of issues. The House formed a special committee to focus on China-related issues. And Schumer directed committee chairs to begin working with Republicans on a bipartisan China competition bill.
Senators are expressing an openness to the bill but suggested they don’t want to rush ahead.
“It is not for me a redeeming quality that you’re moving very fast in technology because the history shows you make a lot of mistakes,” said Sen. Ron Wyden, D-Ore.
In pushing ahead with the legislation, House Republicans are also creating rare daylight between themselves and former President Donald Trump as he seeks another term in the White House.
Trump has voiced opposition to the effort. He said Monday that he still believes TikTok poses a national security risk but is opposed to banning the hugely popular app because doing so would help its rival, Facebook, which he continues to lambast over his 2020 election loss.
As president, Trump attempted to ban TikTok through an executive order that called “the spread in the United States of mobile applications developed and owned by companies in the People’s Republic of China (China)” a threat to “the national security, foreign policy and economy of the United States.” The courts, however, blocked the action after TikTok sued, arguing such actions would violate free speech and due process rights.
Like many modern artists, Sawyer Hill is constantly scrutinizing the social media platforms that impact music discovery. In January, the 24-year-old singer-songwriter sensed a shift in the digital winds.
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“I used to scroll through TikTok and my whole feed was musicians,” he says. “And then I started noticing all my videos on Instagram were getting distributed at a way greater rate — for the same video, the ratio of likes to views was way higher on Instagram than it was on TikTok.”
This was true despite the fact that Hill was treating Instagram Reels as an afterthought at the time — often just re-posting TikTok clips there, as many artists do. “I wonder what would happen if I really put effort into an Instagram video,” Hill remembers thinking. He started promoting his 2023 single “Look at the Time” – a caustic, grungy rocker delivered in somber baritone – on the platform, and it rose to No. 1 on Spotify’s Viral 50 chart in the U.S. in February.
This sort of breakthrough would be an exciting moment for any musician. Hill’s story has also taken on additional weight at a time when the music industry is casting around for marketing alternatives to the app that’s been ground zero for pop virality for a half-decade now. Some artists are unable to use TikTok to promote their recordings since negotiations between the platform and Universal Music Group fell apart at the end of January.
Trending on Billboard
Historically, YouTube Shorts and Instagram Reels have not been able to match TikTok’s impact on streams, so most artists and marketers have not prioritized them to the same degree. (Even with the success of “Look at the Time,” Instagram users’ passion hasn’t led to the type of streaming explosion enjoyed by TikTok favorites like Djo’s “End of Beginning.”) Some optimistic marketers believe that, in a world where TikTok is no longer an option for many acts, artists will finally be able to figure out effective strategies to use elsewhere. It’s like a point guard being forced to tie his right hand behind his back to build strength dribbling with his left.
“Focusing on one or two platforms instead of three could result in better impact,” says Johnny Cloherty, co-founder of digital marketing company Songfluencer.
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This climate helps explain why, after “Look at the Time” began to take off on Reels, “all these people on the industry side were like, ‘this is unbelievable,’” Hill says.
Virality was far from Hill’s mind when he started playing guitar as a kid in Fayetteville, Arkansas, using an instrument abandoned by his brother. By the time he was a freshman in high school, he was good enough to join a band full of seniors. “Whenever they all graduated, they’re like, ‘We’re playing bars now, so you’re either going to do that with us or hit the road,’” Hill recalls.
The choice was easy: He started playing bars around the age of 15. “I was always hanging out with 30- and 40-year-olds at the bar who were telling me their whole life story,” Hill says.
But he eventually realized there was a ceiling on the local circuit. “We’ve been playing all these bars for years, and it hasn’t really gotten us very far,” Hill remembers feeling. “We want to play for the masses. And the only real way we saw to do that was through social media.”
He started with TikTok, since “all music-related things were extremely TikTok-specific at that point.” It didn’t come to him easily. “I started out feeling what a lot of musicians do: ‘These social media platforms are lame, and it seems so fake,’” he says.
But the imperative to reach a wide audience eventually overruled the cringey moments. “There are people making their careers on these platforms,” Hill says. He wanted to be one of them: “I became borderline obsessed with figuring out these platforms.”
His first popular video was popular for the wrong reasons; users were making fun of his singing. Hill remained calm. “One day you can have thousands of people in your inbox telling you that you’re the worst thing in the world, and then the next day you have thousands of people in your inbox telling you that you’re the best in the world,” he says.
His equanimity was rewarded not long after, when he posted a live performance video of “Look at the Time” that was well received on TikTok. (At the time, he had not recorded the song.) After a few more successful videos, Hill caught the attention of AWAL, a label services company acquired by Sony in 2021, where he signed last year. When he turned his attention to Reels earlier in January, he wanted to push “Look at the Time” again because he already knew it was “super reactive.”
Many artists who benefit from a sudden surge of attention on social media and get record deals then have to go and learn how to perform. For Hill, this is not a problem. “I’m so grateful for having spent my teenage years playing all these bars,” he says. “We’re ready to take advantage of the moment and to go on tour.”
His advice to others hoping to crack the code on Instagram promotion boils down to “try hard” and stay flexible. “They’re pushing musicians like crazy on Instagram for now,” Hill says. “But that can change in one software update.”
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Source: NurPhoto / Getty / TikTok
TikTok’s run in the US over? The social media platform is trying its best to remain on smartphones in the States, but the US Government is working really hard to end its stranglehold on social media content creators.
Spotted on The Verge, TikTok is relying on its users to contact their local congress members as a bill calling for the app’s ban gains support in Congress.
The social media platform sent out a push notification warning users about the ban, claiming the government is trying to strip their constitutional rights from them.
Per The Verge:
TikTok sent users in the US a push notification on Wednesday, warning that “Congress is planning a total ban of TikTok” that would “[strip] 170 million Americans of their Constitutional right to free expression.”
The page says that a ban would “damage millions of businesses, destroy the livelihoods of countless creators across the country, and deny artists an audience.” The alert includes a way for users to find their representative and call their office.
The notification comes shortly after the White House expressed support for a bipartisan bill directed at TikTok, which is owned by the Chinese company ByteDance.
The bill — called the Protecting Americans from Foreign Adversary Controlled Applications Act — is in response to the perceived national security risks of TikTok, particularly around how the company collects user data.
The bill would require that TikTok break off from ByteDance or risk being removed from app stores in the US.
The Irony
The White House’s support for the bill is ironic due to President Biden’s presence on the platform under the handle @BidenHQ.
Congress has been trying for years to ban the app, with some states successfully banning the app from government devices, and Montana became the first state to ban it successfully.
A judge put a halt on the ban, which is the subject of numerous court challenges. If the government is successful in passing the ban, the American Civil Liberties Union is already pointing out that it will be a violation of the First Amendment.
TikTok has been having a rough year, with UMG (Universal Music Group) pulling music off the platform after both entities did not extend their licensing agreement.
It sounds like TikTok is in danger. There’s always Instagram Reels. Just saying.
The National Music Publishers’ Association (NMPA) warned some of its members on Tuesday that the organizations’ license with TikTok ends April 30 and it “do[es] not anticipate” to renew, extend or form a new license with the platform, according to a letter obtained by Billboard.
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This means that a lot more music could be removed from TikTok come May, spreading the reach of recent music takedowns far beyond what users have already experienced since Universal Music Group began pulling its recorded music and publishing catalogs off the platform in the last month. The NMPA license is used by a number of independent music publishers, but the organization has previously declined to specify which ones.
“Recently, the press has highlighted concerns around TikTok’s licensing practices, concerns that NMPA has heard directly from many of our members,” says the organization in its letter to members.
Trending on Billboard
If publishers wish to continue to license their works to TikTok, the NMPA’s letter urges publishers using its license to “engage directly with TikTok to negotiate a license beyond April 30.” For those that wish to let the license lapse at the end of April, the NMPA says its attorneys are available to “discuss enforcement options.”
“It is important that all NMPA members understand that without a license in place, TikTok should not be using your musical works on its platform,” the organization wrote.
The NMPA negotiates its TikTok license an optional offering for its membership, allowing them to bypass the strain and cost of negotiating directly with the short-form video app. Though the major music publishers are part of the NMPA’s membership, they do not use the NMPA model license for TikTok and, instead, negotiate their deals directly.
David Israelite, the NMPA’s CEO and president, previously announced that the NMPA license was up for renewal in April, but this is the first time the organization has acknowledged that it will not be pursuing that renewal. “I’m only going to say two things about TikTok,” Israelite said at an Association of Independent Music Publishers’ event in Los Angels on Feb. 1. “The first is I think music is tremendously important to the business model of TikTok, and, secondly, I am just stating the fact that the NMPA model license, which many of you are using, with TikTok expires in April.”
The NMPA is known for its aggressive approach to licensing negotiations with social media sites, streaming services and gaming platforms. On Tuesday, it was announced that a federal judge will allow the NMPA’s multi-million dollar lawsuit against X to go forward, although it tossed some significant elements of the case. The NMPA has also similarly fought back against Twitch, Roblox, and Pandora in recent years.
Read the full letter to NMPA members below:
If you are receiving this Member Alert you are currently participating in a license with TikTok through NMPA’s 2022 model license opt-in.
NMPA is notifying all participants that these two-year licenses are set to expire on April 30, 2024.
Recently, the press has highlighted concerns around TikTok’s licensing practices, concerns that NMPA has heard directly from many of our members.
At this time, we do not anticipate that there will be an option to renew or extend the current NMPA licenses or participate in a new license with TikTok through NMPA.
NMPA members should make their own business determination whether to engage directly with TikTok to negotiate a license beyond April 30, 2024.
It is important that all NMPA members understand that without a license in place, TikTok should not be using your musical works on its platform.
Starting May 1, 2024, any members who are not licensed with TikTok and would like to discuss enforcement options can contact attorneys at NMPA.
If circumstances change prior to the expiration of the current TikTok licenses, NMPA will promptly notify members.
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At the end of February, TikTok took down every song in which Universal Music Publishing Group owns a share, a complicated step in the escalating showdown between the two companies that started a month earlier during the week before the Grammy Awards.
We are now in uncharted territory: Never before has a major label used the “nuclear option” to withdraw both recorded music and publishing rights from a platform — an especially dramatic step because it includes any song in which UMG owns even a small share. (By Billboard‘s estimates, it affects over 60% of the most popular TikTok songs in the U.S.) What most people don’t know is that these negotiations might perhaps also be affected by a Feb. 9 decision from the Munich Regional Court about the German implementation of the 2019 European Union Directive on Copyright in the Digital Single Market — the Urheberrechts-Diensteanbieter-Gesetz (UrhDaG). It will certainly shape future negotiations like this.
The case involved the Berlin-based film distributor Nikita Ventures, which operates YouTube channels and, coincidentally, TikTok. And although it wasn’t covered much by English-language press, it shows that negotiating leverage is gradually shifting from platforms to rights holders. “This verdict,” Matthias Lausen, a founding partner of the Lausen law firm, who represented Nikita told me, “shows that there is no safe harbor in Europe anymore for platforms.”
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In the case, Nikita said that it offered to license its content to TikTok in early 2022, at a cost of three euros per thousand views, an amount based on a published rate from GEMA, the German collecting society. (Licensees often seem to pay less than this.) By summer, TikTok had not responded with a counteroffer, and Nikita said that the content it had asked TikTok to block was available until August. TikTok said in court that it was still negotiating, that its filtering system is compliant with the law and that it responded to takedown notices. The court essentially ruled that TikTok didn’t make a best effort to negotiate, though, and held the company liable for infringement, with damages to be determined, plus required it to provide information about how many times the content in question was accessed, as well as its resulting revenue and profit.
Why does this matter? Until now, the U.S. Digital Millennium Copyright Act and laws like it have limited the leverage of rights holders in negotiations. Platforms that make available content uploaded by users have been free to build audiences, and businesses, as long as they have no direct knowledge of infringement and respond promptly to takedown notices filed by copyright holders. This has given platforms what some might call a “Free Ride,” and on a Feb. 28 UMG earnings call chairman and CEO Lucian Grainge said “there must not be free rides for massive global platforms such as TikTok.”
The 2019 European Copyright Directive was intended to address this, and it requires online platforms to make their “best efforts” to license content, as well as block content they haven’t licensed once rights holders have given them the necessary information. But this is the first court decision based on it.
Nothing will change overnight. The scope of this decision is limited, platforms could potentially get around it by better documenting their negotiations with rights holders, and it’s hard to imagine it will have a substantial effect on UMG’s negotiations with TikTok. But it shows that Europe is serious about forcing online platforms to negotiate on an even playing field, which should result in more favorable deals. (Since European countries do not have class-action lawsuits or high statutory damages for copyright infringement, though, this will not lead to a gold rush of litigation.)
Much of that is in the future, and some of these deals will involve platforms that don’t even exist yet. To get a sense of how this might play out, though, imagine a video-based nano-blogging platform that allows schoolchildren to record minute-long covers of pop songs. (I’m making this up, of course, but it’s not the dumbest idea I’ve heard this year.) That platform would have to approach rightsholders about deals early and often, then take serious steps to block the content they ask it to. That means it would have to license content before it got big — not once it’s already too big to fail.
Even now, TikTok needs to make a “best effort” to take down UMG’s publishing catalog. The company took prompt action, so it’s likely to be in the clear there, although it will be interesting to see what happens with recordings that are sped up and slowed down. At a time when songs are sliced and diced by influencers, how elaborate does a best effort have to be? Could we find out in a case that involves this dispute? The odds are against it, but stranger things have happened.
For the past quarter century, rights holders have had a hard time negotiating on an even playing field, which has arguably pushed down the price of content for both online businesses and, through them, for users. That dynamic is changing — slower than rights holders want and faster than platforms prefer — but steadily all the same. It will be hard to measure this, because these big licensing deals by their nature are complicated and intransparent. Finally, though – for good or ill depending on what side you’re
Adele Dazeem is 10 years old!
It’s been a decade since the legendary 2014 moment at the Oscars where John Travolta butchered Idina Menzel’s name before she performed her Frozen hit “Let It Go,” referring to the stage and screen star as “Adele Dazeem.” To celebrate, Menzel took to Instagram to poke fun at the mix-up, and wish her girl Adele the happiest of birthdays.
“Hey, Adele Dazeem! It’s Idina Menzel,” she says in the now-viral clip posted this week. “I just wanted to say happy birthday. Sending you so much love and positive energy.”
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“I hope you have the best, best day,” Menzel added, before hilariously performing a heartfelt rendition of the “Happy Birthday song and signing off.
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After the moment became a meme flooding the Internet in 2014, Travolta issued a statement through is publicist in which he deeply apologized for his mispronunciation. “I’ve been beating myself up all day. Then I thought … what would Idina Menzel say? She’d say, ‘Let it go, let it go!’ Idina is incredibly talented and I am so happy ‘Frozen’ took home two Oscars Sunday night!,” he said at the time.
In 2022, Menzel poked fun at the situation once more, taking part in a TikTok challenge. The challenge, cued to the Ting Tings’ 2008 hit “That’s Not My Name,” finds Menzel cycling through video clips from her most famous movie roles. Opening with a shot of Idina’s face and the words, “My name is Idina… but they call me,” the clip then pivots to quick-cuts of her role as Elphaba in Wicked, Maureen in Rent, Shelby Corcoran (“Rachel’s Mom” in Glee), Nancy in Enchanted, Elsa in Frozen, Vivian in the Camila Cabello Cinderella reboot and Dinah from Adam Sandler’s Uncut Gems. To wrap up, a shot of Travolta from that fateful night with just a series of question marks filling the screen
Watch Mendel’s birthday wishes to Adele Dazeem below.
https://www.tiktok.com/@idinamenzel/video/7341960740435266862
The breakdown in licensing talks between Universal Music Group (UMG) and TikTok affects far more than Universal recording artists and songwriters.
Every now and then, a music company pulls its recorded music catalog, publishing catalog or both from a digital service provider after licensing talks break down — Warner Music Group did this with YouTube in 2008, for example. It happened again starting Feb. 1 when UMG started pulling its recordings from TikTok after the two companies couldn’t come to an agreement on a new licensing deal.
The licensing breakdown first affected artists signed to UMG record labels. Take the Q4 Hot 100, a list of the top 100 tracks in the fourth quarter. UMG’s various record labels — including Republic Records and Interscope Records — released 41 of the 100 tracks, among them Taylor Swift’s “Cruel Summer,” Doja Cat’s “Paint the Town Red” and Brenda Lee’s “Rockin’ Around the Christmas Tree.”
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On Tuesday (Feb. 27), TikTok began removing compositions part-owned by Universal Music Publishing Group (UMPG). On the publishing side, UMG has an interest in 40 of the Q4 2023 Hot 100 tracks, such as SZA’s “Snooze” (a track released by Sony’s RCA Records), Jack Harlow’s “Lovin on Me” (a track released by Warner Music Group’s Atlantic Records) and Usher’s “Good Good” (a track released by gamma, an indie newcomer).
Since every recording involves two copyrights — one for the master recording, one for the composition — the damage of UMG’s decision to pull its repertoire from TikTok is larger yet. Counting both recorded music and music publishing, UMG has an ownership interest in 61 of the Q4 2023 Hot 100 tracks. Twenty of those 61 tracks have a UMG publishing interest but were not released by a UMG-owned record label. Another 20 of those tracks have a UMG publishing interest and were released by a UMG record label. UMG does not have a publishing interest in the remaining 21 of those tracks that were released by a UMG record label.
That’s far larger than UMG’s market share in either recorded music or publishing. UMG had a 39.4% share of U.S. recorded music by distribution in 2023 (a 29.4% share by ownership) and a 15.8% publisher’s market share of the Hot 100 in the fourth quarter of 2023.
Ownership interest, not market share, gets to the true impact of the UMG-TikTok impasse. Today’s popular songs have multiple co-writers, each of whom might have a different music publisher. When a track includes a sample or interpolation of another composition, those works’ songwriters get credits on the new work, too. The 41 tracks on the Hot 100 in which UMG has a publishing interest have an average of 5.5 songwriters. Eight of those 41 tracks had 8 or more co-writers; four of them had 10 or more co-writers. Of the 41 tracks with UMG ownership interest, only Irving Berlin’s 83-year-old “White Christmas” was written by one person.
The more songwriters who are on a single track, the higher the odds that any one music publisher can remove a track during a licensing dispute. An example of this complexity is “What It Is (Block Boy)” by Doechii featuring Kodak Black, released by UMG-owned Capitol Records (the track entered the Hot 100 in May thanks to success on TikTok). The recording includes a sample of TLC’s 1999 hit “No Scrubs” and interpolates a hook from “Some Cut” by Lil Scrappy and Trillville, which reached No. 15 on the Hot 100 in 2005. “What It Is (Block Boy)” has 16 co-writers, including the 4 co-writers of “No Scrubs” and 6 co-writers of “Some Cut.”
A wide swatch of the music publishing business is represented in “What It Is (Block Boy).” The Music Licensing Collective’s public database lists 7 different publishers attached to the composition: UMPG, Sony/ATV, Warner Chappell Music, Disney, BMG, Concord and Reservoir Media. UMPG’s 3% collection share is the smallest of the seven publishers.
To be sure, the Hot 100 from the fourth quarter of 2023 isn’t a perfect reflection of what is currently most popular — or would be popular if not for the licensing impasse — at TikTok. The TikTok Billboard 50 shows the platform’s most popular music is a mix of Hot 100 staples (“Lovin On Me”) and indie music that otherwise wouldn’t be seen on a Billboard chart (Aphex Twin’s “QKThr”).
This headline-grabbing development isn’t a story of one music company against one tech company; labels and publishers that renewed their licensing deals with TikTok have unwillingly joined UMG’s battle with the platform. UMG’s inability to reach a deal with TikTok impacts every major label group and likely touches every music publisher of note.