TikTok has announced that it has struck a multi-year direct deal with prominent indie artist services and distribution platform UnitedMasters.
One interesting aspect of this story: UnitedMasters is a Merlin member.
The current blanket licensing deal between social media giant TikTok and independent music licensing group Merlin officially expires exactly one week from now, on October 31.
As reported earlier this month, TikTok recently scrapped re-licensing discussions with Merlin, blaming “operational challenges with Merlin in the past where music that is not quality controlled for copyright is delivered”.
Instead of inking a new blanket deal with Merlin, TikTok has instead invited individual Merlin members to negotiate direct licensing deals with its team.
According to the official announcement on Wednesday night (October 23), the “groundbreaking new direct partnership” with UnitedMasters will integrate UnitedMasters‘ entire catalog into TikTok‘s platform and “provide additional commercial opportunities to UnitedMasters artists via TikTok’s Commercial Music Library“.
TikTok notes that UnitedMasters has already helped launch the careers of emerging artists like FloyyMenor, whose hit Gata Only, as we reported in August, has gained over a billion streams and was hailed as TikTok’s No.1 Song of the Summer globally.
“TikTok’s ability to propel a track to success has been demonstrated time and time again, as songs that find popularity on the platform cross over and experience mainstream success on the charts,” said Steve Stoute, Founder and CEO of UnitedMasters.
“Thanks to this partnership, I look forward to watching our artists continue to build their careers on TikTok and beyond.”
The distribution platform says that it works with 2 million-plus independent artists.
In the press release about the deal, TikTok and UnitedMasters said that they “share the vision and understanding that commercial use of music on platforms such as TikTok offers significant revenue and promotional opportunities for artists.”
TikTok claims further that its commercial music library “gives artists unparalleled access to the 70+ million brands on the platform, creating net new revenue and promotional streams for artists”.
Beyond TikTok, the announcement noted that UnitedMasters “creates thousands of sync opportunities for the artists” who use the UnitedMasters platform, securing placements and partnerships across major brands and media companies like Diageo, Bose, Walmart, ESPN, Coca-Cola, IKEA, Dove, and many more.
TikTok recently abandoned re-licensing discussions with Merlin (of which UnitedMasters is a member), citing concerns over content quality control and fraudulent behavior from certain Merlin members.
A TikTok spokesperson earlier told MBW that the platform “had operational challenges with Merlin in the past where music that is not quality controlled for copyright is delivered [to TikTok].”
They added: “It presents a big burden, and doing direct deals allows us to exercise better control and also to forge closer relationships with Merlin members.
“TikTok must be able to control the quality of the content being uploaded to its platform, and to ensure that all content delivered is legitimate.”
As previously mentioned, instead of renewing its blanket agreement, TikTok is now pursuing direct licensing deals with individual Merlin members.
Earlier this month, Ole Obermann, Head of Music Business Development at TikTok, explained that the shift “isn’t about bad blood with Merlin”.
He added: “By doing direct deals, if we detect any kinds of content copyright issues, we can address it directly. It’s that simple.”
Most recently, Obermann said: “We want to make the world’s best music available to our global community of over a billion music fans.”
“WE WANT TO MAKE THE WORLD’S BEST MUSIC AVAILABLE TO OUR GLOBAL COMMUNITY OF OVER A BILLION MUSIC FANS. THAT’S WHY WE ARE SO EXCITED TO BE ENTERING INTO A DIRECT DEAL WITH A PROMINENT INDEPENDENT LABEL LIKE UNITEDMASTERS.”
OLE OBERMANN, TIKTOK
He added: “That’s why we are so excited to be entering into a direct deal with a prominent independent label like UnitedMasters, with its deep, diverse roster of independent artists.
“Together, we’re ready to amplify these voices and bring their music to a global stage, unlocking new opportunities for discovery.”
“TIKTOK RECOGNIZES THE POWER OF MUSIC AND CREATIVITY, WHICH IS WHY WE ARE EXCITED TO FORMALIZE THIS PARTNERSHIP.”
STEVESTOUTE, UNITEDMASTERS
SteveStoute, Founder and CEO of UnitedMasters, added: “Our partnership with TikTok provides UnitedMasters artists unparalleled access to a vast global audience, while TikTok creators and users gain early exposure to some of the most impactful independent music today.
“TikTok recognizes the power of music and creativity, which is why we are excited to formalize this partnership.”
