TikTok’s decision to boycott Merlin and pursue direct deals with Merlin’s member labels is a troubling move that undermines labels’ rights to choose how they license their music. While TikTok is positioning this change as a way to combat streaming fraud, it’s clear that the real motive is to reduce the bargaining power of independent labels and use that leverage to keep prices down.
Over the past 16 years, Merlin has built strong partnerships with over 40 digital services around the world. These partners recognize the value that Merlin brings: efficiency, scale, and deep understanding of the independent music community. TikTok’s move to sideline Merlin is not to protect itself from wrongdoing, but to undermine independent labels’ ability to achieve competitive conditions, not just now but in the long term. The end result of refusing to negotiate with Merlin over the music that earns TikTok billions of dollars will be damaging to artists’ ability to make a living from their art.
This tactic is not new. This reflects the music industry’s historic struggles with terrestrial radio and partners such as MTV. Both made huge profits from the use of recorded music while refusing to pay artists in the name of “promotional value” or “exposure.” Sales of artist CDs and LPs. In this largely digital economy, streams are sales, and it’s widely reported that TikTok pays rights holders far less than other services for comparable use of their music.
Richard James Burgess, A2IM President and CEO
Independent labels choose Merlin to license their rights because of our expertise, experience and track record in conducting these types of transactions. This ensures a level of remuneration that is competitive with larger companies and protects independent businesses from unfair exploitation. TikTok’s decision to bypass Merlin and require direct transactions is an attack on the freedom of small and medium-sized businesses to determine their own business strategies. The fact that TikTok is giving Merlin members days to accept TikTok’s terms or lose access to its massive platform is an unfair exercise of its market power.
We believe this apparent divide-and-conquer strategy is aimed at leveraging the perceived dependence of independent artists on the TikTok platform to keep payments to independent artists low. It’s not about addressing fraud or improving the digital music ecosystem. In fact, the number of licensing agreements TikTok will need to enter into will increase exponentially, and losing Merlin as a partner in the fight against fraudulent content could lead to even more fraud. Merlin simplifies licensing and makes it easier for the platform to access a diverse range of independent music. Fragmenting this system harms artists and fans and limits the scope of music available on TikTok.
At the heart of this issue is respecting the rights of independent labels to decide how their music is licensed. TikTok’s actions do not reflect Merlin’s problems. It reflects TikTok’s lack of respect for the value of music. All other major platforms have responsible agreements with Merlin that balance service needs with optimized compensation for artists. TikTok’s rejection sets a dangerous precedent for recording artists and their labels.
TikTok must stop degrading and belittling the independent music community. This can be achieved by labels working with their chosen rights management authority to establish a fair and transparent licensing system that benefits all stakeholders in the music ecosystem. Independent labels have the right to choose representatives to negotiate contracts that truly reflect the value of their artists’ creative contributions. Anything less is a disservice to artists and fans, and undermines the very fabric of music culture.
Dr. Richard James Burgess is an acclaimed musician, singer, songwriter, record producer, composer, author, manager, marketer, inventor, and current member of the American Association for Independent Music (A2IM) Chairman and CEO of
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