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In September, “Dumb Dumb” — a song by mazie featured in the Netflix teen drama Do Revenge — caught a wave on TikTok, and listenership grew exponentially. Over the course of two weeks, “the record went from doing around 10,000 streams per day to around 1.4 million per day and has sustained since,” says Max Gredinger, who manages the 23-year-old artist. “We saw increases across the rest of her catalog as well, which showed new fans were sticking around to learn more about mazie and her music.”
Artists and executives compare success on TikTok to the lottery — it often seems just that random. But crucially, the payout on a winning ticket doesn’t come from TikTok itself. The financial rewards accrue outside the platform in the form of royalties from streaming surges or a label advance, with seven-figure deals routinely thrown at viral acts in recent years. TikTok, which has built a thriving business based largely on users syncing videos to music, pays “almost nothing,” according to one music distribution executive.
There isn’t a fixed rate for music on TikTok; labels and distributors negotiate licenses individually. But one thing appears constant: “The numbers are horrifying,” says one manager who has had several songs take off on the app and shared his royalty statements with Billboard. A marketer who oversaw the campaign for a single that was used in roughly half a million TikTok videos reports that his artist took home less than $5,000 from the platform, despite the views numbering in the billions. TikTok’s parent company, ByteDance, “doesn’t view music as a value add,” says another senior executive. “They just view music as a cost center they have to limit as much as possible.”
So far, ByteDance has been very successful in doing just that. One indie-label head shared several months of royalty information indicating that 1 million views on TikTok leads to about $8 — actually a better rate than the one exhibited on three other indie labels’ most recent statements that were shared with Billboard. In contrast, managers say that while payouts from YouTube vary, 1 million views will usually earn somewhere between $500 and $2,000.
It’s surely not a coincidence that music industry complaints about the money flowing from TikTok are gaining traction as the major labels are negotiating licenses with ByteDance, which is planning to expand its streaming service, Resso, beyond test markets in Brazil, India and Indonesia. Speaking at a recent industry conference in Singapore, Universal Music Group (UMG) CEO Lucian Grainge warned the music business of a value gap “forming fast in the new iterations of short-form video.”
Adding to that sense of a value gap: As TikTok’s business expands — gaining more users and selling billions of dollars in advertisements — labels and distributors do not participate in that growth.
In a statement, TikTok global head of music Ole Obermann said: “We’re proud of the partnerships we are building with the industry and artists, and we are confident that we are enhancing musical engagement.” He added, “That translates directly to more financial and creative opportunities for music creators.”
Part of the debate over how much artists should earn from TikTok stems from a debate about the nature of the platform itself. TikTok is video-based, and Obermann has pointedly said that it is “not a streaming platform.” He reiterated this in his statement to Billboard: “Our community comes to TikTok to watch videos, not to listen to full-length tracks.”
But the app is already threatening established streaming platforms, which must battle for ear time with TikTok’s additive clips. And some in the music industry dispute Obermann’s claim — they already see a generational shift where “some people have a TikTok playlist and just use it as their music service,” as one indie-label head puts it. “Much of the [music] ‘discovery’ that happens on TikTok is consumption,” Mark Mulligan, managing director for music consultancy MIDiA Research, wrote in a recent blog post.
Sources say that individual labels and distributors have different deals with ByteDance, which negotiates lump-sum upfront payments to use their recordings on TikTok for a set period of time. (Since users can upload their own videos — with the music of their choice — to TikTok, ByteDance has added leverage in these negotiations. If a label doesn’t come to an agreement with the company, it will have to devote a good deal of time and resources to issuing takedowns.) In addition, each label and distributor can make its own decision about how to parcel out those payments to artists.
Many of the sources who spoke for this story are paid by their labels or distributors according to the amount of individual videos uploaded that incorporate their songs. Reports from one indie-label executive showed that acts on his roster earned around $150 from TikTok for roughly 100,000 videos made with their music. A manager who works with several artists who have had successful TikTok songs shared reports for individual tracks: One single brought in around $100 after being used in about 60,000 clips, while another earned $350 from over 80,000 videos.
Other sources say they see only TikTok views, rather than video creations, on the royalty reports they receive from their label or distributor — or make the decision to rely on views to calculate TikTok payouts internally. “If you’re paying based on creations, that’s saying it doesn’t matter if a song is heard one time or 1 billion times, and that would really devalue music,” says the indie-label head.
When executives examine TikTok payouts compared with views on platform, the money made seems even more minuscule. “TikTok doesn’t pay out nearly what any other view pays,” says a head of a record company that is distributed by a major. “It’s astronomically lower.”
Some in the industry who value TikTok as a marketing tool note that money flowing to the music industry has improved over time. And several sources compared the current situation to the music industry’s combative early relationship with YouTube.
In Singapore, Grainge warned of “repeating past mistakes,” citing both MTV and YouTube. “We were given a lot of reasons why our artists shouldn’t get paid,” Grainge told attendees. “People said, ‘It’s great promotion,’ ‘Or you can use it as a platform for discovering new artists’ … technology platforms were built on the backs of the artists’ hard work.”
Grainge called on key players to protect music’s “cultural and commercial value.” And the senior executive who believes that ByteDance sees music as a “cost center” expressed a similar sentiment. ByteDance “needs to move to a more rational model that equates more value with what is driving their business,” he says. “Only pressure is going to get them there.”
This story originally appeared in the Nov. 5, 2022, issue of Billboard.
TikTok creators will soon be handed a fresh set of tools to soundtrack their videos and potentially make hit songs when a new in-app platform created by Simon Cowell’s Syco Entertainment company, in partnership with Universal Music Group and Samsung, launches on the platform later this month.
Called StemDrop, the initiative will provide TikTok’s more than 1 billion monthly users with access to music “stems” (the isolated components of a song, such as drum tracks or individual vocal parts) from an exclusive new track composed by hit songwriters Max Martin, Savan Kotecha and Ali Payami entitled “Red Lights,” which creators can then use to record and share their own versions.
The project was conceived by British music mogul Cowell and entertainment executive Tim Van Rongen in partnership with Universal Music imprint Republic Records and Samsung.
“With tens of thousands of songs uploaded every day this idea will give aspiring artists the opportunity to collaborate with some of the most successful songwriters in the world,” said Cowell in a statement announcing the project.
Sir Lucian Grainge, chairman and CEO of Universal Music Group, paid tribute to the “incredible team” Cowell has assembled to launch the platform, “harnessing the scale of TikTok, to leverage the artistry of creators worldwide.”
StemDrop debuts on Oct. 26, when 60 seconds of “Red Lights” will be exclusively released on TikTok, along with individual “stems” from the track which can be accessed through a dedicated micro-site or an in-app StemDrop Mixer, enabling users to play with production effects and create new versions of the song.
A spokesperson for StemDrop tells Billboard that Universal/Republic Records retain ownership of the master recording of “Red Lights”, the publishers own their share and with any future versions, the contribution of any new creator will be added to the royalty split.
It’s not clear if Martin — who co-wrote and produced multiple Billboard Hot 100 No. 1s, including Britney Spears’ “…Baby One More Time,” Taylor Swift’s “Shake It Off” and The Weeknd’s “Blinding Lights” – or “Red Lights” co-writers Kotecha and Payami will be involved with the platform beyond its first phase, which is officially titled “’StemDrop’ – A Song for the World.”
Following its launch, a StemDrop profile on TikTok will share new versions of the track from around the world, curated by the platform, Syco, Republic Records and Universal Music Group. TikTok music curator Ari Elkins, singer-songwriter Astrid S and digital creator Your Boy Moyo will act as global ambassadors for StemDrop and host daily content on the @StemDrop TikTok channel. Syco Entertainment and Republic Records will provide creative direction and drive the StemDrop talent discovery program going forward, according to a press release from TikTok.
“Every day, brilliant, undiscovered artists and songwriters turn to TikTok to share their music and find a global audience,” said Ole Obermann, Global Head of Music at TikTok. “StemDrop will put a spotlight on this talent and act as a springboard to help them build their careers.”
TikTok’s former U.S. head of content partnerships, Bryan Thoensen, has joined Spotify to oversee the company’s content strategy and partnerships with individual audio creators, known as the talk creator content and partnerships team.
Thoensen will report up to Max Cutler, who was promoted earlier this year to lead Spotify’s partnerships with creators and now holds the title of vp of talk creator content. In his new role at Spotify, Thoensen will also oversee the team’s business development and acquisitions as part of the audio giant’s larger exclusive podcast strategy.
“Bryan’s knowledge of the creator landscape will be critical as we build out our platform strategy with the goal of becoming a true platform beyond distribution, and reinforce our mission of building trust with creators,” Cutler wrote in a memo to staff.
Prior to joining Spotify, where the executive began meeting with the talk creator content and partnerships team in the past few weeks, Thoensen oversaw TikTok’s relationships with top public figures and managed relationships with brands like the NFL, NBA, Condé Nast and NBC. He was also formerly a svp for original entertainment at Fullscreen and a director of content for Hulu’s original programming following a roughly six-year career at WME.
Thoensen will remain based in Los Angeles.
This article was originally published by The Hollywood Reporter.
In 2018, Nielsen Soundscan’s year-end music industry report confirmed that R&B/hip-hop was the most popular genre in America. Nine of the 10 most consumed songs in the United States were hip-hop/R&B songs, and as streaming became the dominant way to consume music, eight of the 10 most streamed artists were rappers.
That report focused on 2017, but the period between 2015-2018 was a crescendo for the genre. Established artists like Ye, Jay-Z and Lil Wayne still had more in the tank; younger stars like Drake, Kendrick Lamar and Nicki Minaj put their mark on the culture; and rising stars like Pop Smoke, Juice WRLD, XXXTENTACION and Cardi B were already scoring RIAA plaques. Everything was pointing up.
Looking at the hip-hop landscape today, you might get a different feeling. Rap is still enormously popular, but its growth is slowing. Luminate’s mid-year report revealed that R&B/hip-hop still has the largest overall market share of any genre in the United States with 27.6% — but that’s a decline from last year’s 28.4%, even though it widened its lead at the top in terms of overall equivalent album units. The genre’s total on-demand streaming growth is up 6.2% in 2022, but that’s lower than the rate of the market overall, which is up 11.6%.
“I will say, I’m concerned,” says Carl Cherry, Spotify’s creative director and head of urban. Cherry says he’s been alarmed about rap since last year: “2015, 2016, 2017, 2018, those years felt magical. My concern is that the magic is gone.”
There’s a variety of reasons the genre’s future feels precarious. First, rap’s superstars like Drake, Kendrick Lamar and Post Malone are aging into a different chapter of their careers, less invested in chasing hits. This year, Drake dropped the dancefloor detour, Honestly, Nevermind, while Kendrick made the deeply personal Mr. Morale & The Big Steppers and Post Malone released his darkest album yet, Twelve Carat Toothache. The albums debuted with respectable numbers, but slid down the Billboard 200 relatively quickly after — and while each of their previous albums spawned Hot 100-topping smashes (“God’s Plan,” “HUMBLE,” “rockstar”), this time, between the three of them, only Drake’s “Jimmy Cooks” went to No. 1, where it lasted a week. Post told Billboard earlier this year, “I don’t need a No. 1; that doesn’t matter to me no more, and at a point, it did.”
Those artists are carrying even more weight because of rap’s second problem; a number of would-be superstars died young. The late Pop Smoke, Juice WRLD and XXXTENTACION were three of the most important rappers of the past few years, not only because they moved units but because they were stylistic innovators. Their premature passings leave a void at the genre’s center — one that has only widened with the further losses of Nipsey Hussle, Mac Miller, Lil Peep, King Von, Young Dolph and, most recently, PnB Rock.
“Unfortunately, we have those tragedies that don’t let those culture-shifters see out their days and fulfill their purpose for the sub-genre they’re repping,” says Letty Peniche, who hosts Power Mornings on Power 106 in L.A. “We didn’t just lose [XXX, Pop, Juice], it also halted that wave.”
Then there’s rap’s third problem: There aren’t as many hot prospects among rap’s rookie class.
“The last couple of years, we’re not seeing as many new stars emerge,” says Cherry. “[From 2015-2018], there were just a lot of guys we would see seemingly come out of nowhere and become huge stars and put up numbers that would rival people that have been established. We’re not really seeing that right now.”
It’s not like we haven’t seen breakout rappers in 2022 — artists like GloRilla, SleazyWorld Go and Yeat are talented and may have bright futures ahead of them. But with the exception of Yeat, their success is tied to hit singles and they haven’t established their bonafides via full-length projects. While they’ve performed impressively for newcomers, they haven’t put up near the superstar-type numbers Cherry refers to.
Meanwhile, some of rap’s most promising upstarts have seen their fortunes turn quickly. DaBaby’s 2020 album, Blame It On Baby, moved 124,000 album-equivalent units in its first week; after a couple of underperforming projects rehashing the same formula, 2022’s Baby On Baby 2 moved a mere 17,000 in its first week. Megan Thee Stallion won the Grammy for best new artist, but her Traumazine album did lower first-week numbers than her debut and it hasn’t spawned a hit close to “Savage.” Roddy Ricch scored the last major pre-pandemic No. 1 hit with “The Box,” but his last single as a lead artist, “Stop Breathing,” has yet to hit the Hot 100. One of 2022’s bright spots was watching Gunna ascend from Young Thug protégé to standalone star as his “Pushing P” became the kind of cultural meme rap routinely produces, yet his achievement was overshadowed when he and Thug were arrested on a RICO charge that may land them both in prison for years.
Some of this might have been inevitable. In many ways, the rap audience was primed for the shift to streaming, resulting in the genre over-indexing in its early years. “The movement of mixtapes out of the free music world of LiveMixtapes, DatPiff and blogs into monetized, proper releases was really key,” says Signal Records founder and CEO Jeff Vaughn, about the 2015-2018 period. “You had this segment of music consumption that had always flown under the radar, but now it was trackable, and there was money being made.”
As the pendulum swings the other way, the playing field is beginning to even out — as country, rock, pop and Latin catch up to hip-hop’s streaming advantage. At the same time, many artists from those genres — including this year’s most dominant artist, Bad Bunny — are now undeniably influenced by hip-hop, but their wins don’t count towards hip-hop’s market share.
Upheaval has become the norm in all genres over the past two years. The biggest factor was the COVID-19 pandemic, which put a pause on the entire music industry and hindered the momentum of countless careers. But there’s also the rise of TikTok, which has had a seismic effect on marketing — turning songs into viral sensations seemingly overnight and creating all sorts of breakout hits, but few lasting careers.
“What I’m seeing is, people stick around for the piece of the song that they like,” explains Peniche. “They don’t want to hear the rest of whatever song TikTok put in their mind. You don’t even know if you’re going to like the full song or even the artist. You fall in love with the snippet — but after that, what happens?”
Peniche adds that things like TikTok have aided in radio’s changing role in music, from breaking hits to simply reminding people of their favorites. While TikTok has helped fuel 2020s rap hits like BRS Kash’s “Throat Baby” and Popp Hunna’s “Adderall (Corvette Corvette),” as well as more crossover-ready breakthroughs like Doja Cat’s “Say So” and Jack Harlow’s “What’s Poppin,” it may already be seeing diminishing returns.
“There’s these songs that gain traction on TikTok but they don’t go all the way,” says Cherry. “They’ll have a lot of streams on Spotify, they’ll be added to big playlists maybe, but they don’t go the distance.”
Cherry also points out how TikTok has also helped keep older music, like J. Cole’s “No Role Modelz,” consistently successful. “The reality of the market is now, you’re not just competing with other new music, you’re competing with the best music period from past or present,” adds Vaughn. “In the meantime, you’re gonna have a lot of first week sales in the 10-30,000 range. Until something changes, that’s just probably the new reality of the business.”
These days, YouTube and TikTok celebrities are competing for attention with musicians, while today’s influencers may also be discouraging tomorrow’s would-be musicians. “People can get rich from their bedrooms now,” says Peniche. “People can get rich off of Twitch playing games. Like, ‘Why would I be out here hustling or going on the road for scraps if I can do something at home and get rich off of TikTok videos?’ ”
Vaughn thinks the problem goes beyond TikTok, though: “Is there more competition for people’s time now than there was five years ago? Yes. Are major [labels’] market share and influence declining relative to their ability to move the market? Yes. Is there more money, focus, attention and people in the hip-hop space now than five years ago? Yes. So all those things combined make it a very different landscape.”
The pandemic also upset the release schedule and forced concert cancellations. Cherry recalled a moment in 2021 when he asked two party promoters what was ringing off in the clubs. They struggled to come up with an answer besides Drake’s “Way 2 Sexy.” “What point in hip-hop history have we had a shortage of club bangers?” asked Cherry. “Never.”
Despite all these worries, there have been bright spots this year. Future is enjoying his biggest commercial year yet, with his I Never Liked You album posting the best solo first-week numbers of his career and “WAIT FOR U” becoming his first Hot 100 No. 1 as a lead artist. Lil Baby, Jack Harlow and Moneybagg Yo continue to be proven hitmakers. Rod Wave, Polo G and YoungBoy Never Broke Again are cult artists with huge followings. Doja Cat, Lil Nas X and The Kid LAROI toe the line of rap and pop, but have put up big numbers with their albums and scored massive crossover hits on the Hot 100.
“Overall, I’m still incredibly bullish on the art form,” says Vaughn. “It’s been here for 50 years, I don’t think it’s going anywhere.”
Ultimately, as Luminate’s mid-year report notes, hip-hop is still No. 1. But culture can’t afford to be creatively stagnant. To stay fresh, it needs to find a spark.
“I’m always worried about where it’s heading,” says Cherry. “But music is cyclical. I don’t think we’ll ever live in a world where hip-hop isn’t the most influential type of music and culture. That’ll never happen. Hip-hop will always be in this position where it just helps shape [culture] and makes everything move.”
TikTok’s growing role in popular culture has caused countless songs to be resurrected over the past few years – including some recognizable rock from over a decade ago. While many of the app’s Gen Z users have been exposed to 2000s mainstays like Paramore and Arctic Monkeys thanks to recent releases, several tracks that were released years ago, and were classics to millennials, have found a new life on TikTok.
Some of these songs have soundtracked iconic television and film scenes, and now find themselves being discovered by a new audience; they’ve also inspired listeners already familiar with their charms to reminisce on simpler times, get up and dance. While some of these artists have taken breaks to embark on solo careers or focus on their mental health, their music lives on and encourages fans, new and old, to keep engaging.
Here are 10 rock songs from the mid-00’s that TikTok has revived.
Nessa Barrett is gearing up to release her debut album, Young Forever, on Friday (Oct. 14), and the 20-year-old singer sat down with Billboard‘s Rania Aniftos to discuss the upcoming album, as well as her new single, “Tired of California.”
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The singer, who got her start on TikTok, revealed that she got “tired of California” right after she moved to the sunny state. “Living in LA and California itself was a dream of mine since I was little. When I was 17, I ran away and moved across the country to be in LA, and it has given me so many opportunities and I love it so much,” she explained. “But, I feel like a lot of people in the industry can relate, we just feel trapped here.”
On her healing while writing such an emotionally charged album, she shared that she’s big on hypnotherapy and inner child work. “I feel like working with yourself and getting very deep and learning how to have compassion for the person that’s inside of you — because we forget that and neglect ourselves in a way — I feel like it’s very important.”
Barrett also shared her thoughts on those who have large social media platforms that are sometimes not taken seriously when trying to take the jump into full-blown musical artist, and then feel confined. “Everyone online isn’t fully the person that they are on social media. So when people start to branch out and do new things or follow a dream of theirs, it’s kind of confusing for people and it’s hard for them to accept,” she said. “Just because you have an audience and a big platform, it doesn’t mean you don’t grow and change like anyone else. That’s part of life.”
Watch Billboard‘s full interview with Nessa Barrett above.