TikTok has strengthened its refusal to negotiate with Merlin following its recent conflict with Universal Music. TikTok’s conflict with Merlin could have serious implications for the independent music sector and the platform’s content strategy.
TikTok conflict with Merlin: Implications for independent music
Chris Castle via Music Tech Solutions
Here’s some news. Make sure you are seated. TikTok still has the scars of its encounter with Universal and wants its trading partner to be weak, divided, and bankrupt. So it makes sense that TikTok would go after Merlin in its latest joint deal rejection.
Let’s recall the basic premise behind Merlin, the licensing authority independent labels can choose from at election time. Independent labels collectively have the same market share as major labels. I remember hearing this from Alison Wenham when the Independent Music Association was founded in 1999. Independent labels are stronger when they come together, united and able to claim their fair share alongside the major labels. (It’s unclear why this is lost with the publisher.)
So, assuming TikTok is still in business by the time the dust settles after Mr. Tok gets his ass kicked by Universal, TikTok is definitely not going to endure resistance from independent labels. Kristin Robinson reports in Billboard:
A TikTok spokesperson said: “TikTok wants to bring all the world’s music to our users. We are committed to working with the independent sector as well as major labels and publishers. We know that our community of over 1 billion music fans appreciate the diversity and richness that independent music brings to our platform. We are committed to working directly with them to keep their music on TikTok.”
Founded in 2008, Merlin commands 15% of the global recorded music market and uses its collective market power to engage digital partners on behalf of its members in a similar capacity as large major labels. We are negotiating.
So, just as the MIC coalition wants a lip from GMR, TikTok doesn’t want a lip from an independent that might be on the same footing as a major. One thing TikTok can’t say is that it would be more efficient for it to negotiate with independent companies individually. This is not a question of efficiency, but of ensuring that a near-universal level of spillage does not occur again. And not just to stop it this time, but to stop it forever.
That means crushing the forces of resistance. That option wasn’t available to Tock when he negotiated with Universal, but it is now available to him.
Of course, you know that TikTok is going to hose down independents. Because the first thing they did before discussing a potential deal was to require the label to sign a non-disclosure agreement (definitely non-negotiable). Because nothing speaks transparency like secrecy. And what’s really great is that no one talks about contracts in the music industry, so it’s okay.
Ms Robinson reports:
Billboard obtained an email that TikTok sent to some Merlin members, which stated that the short-form video app “has decided not to renew its licensing agreement with Merlin,” and that TikTok has decided not to renew its licensing agreement with Merlin. It was stated that “direct transactions may be possible.” Agree to sign a non-disclosure agreement (NDA). “The purpose of the NDA is to enable us to discuss license agreements directly with our customers.” The deadline to sign and return the NDA is October 4th. However, a TikTok spokesperson said Merlin labels that wish to remain on TikTok after October 31st can review and sign TikTok’s contract with CapCut at any time before October 25th.
Merlin told members that it was “doing everything we can to re-engage with TikTok…We have already made it clear that we are willing to engage in real negotiations and address any concerns they may have.” .
In reality, the purpose of the NDA is to silence independent labels that are under threat of lawsuits from Mr. Tok and his supporters, including Neil Shen and Sequoia China. TikTok’s pretense of supporting indie music is about as convincing as ivory poachers joining PETA.
Read more: TikTok could block millions of indie artists by late October Alana Bonilla on 10/08/2024 in Indie Music | Permalink | Comments (0)
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