TikTok Sets Off To Become Record Labels’ Biggest New Competitor
Record labels have taken a new form and it looks a lot like TikTok. The short-form video-sharing company has plans to increase its share in the marketplace by distributing music for independent emerging artists. Is TikTok The Biggest Competitor?
Music label companies and TikTok have had a pretty rough start and although they’re on good terms amid the multiple revenue-sharing deals, it seems the feud is set to rise again, as the platform wants to expand its dominance in the industry.
The giant labels are aware of TikTok’s power to create chart-topping hits and they wouldn’t miss an opportunity like that to invest their money, especially when they can give potential up-and-coming artists a chance to shine.
But with over one billion users and over 200 million downloads in the US alone, TikTok is slowly paving the way for its expansion, and with the launch of SoundOn, it’s only normal that the traditional record labels feel threatened.
It wasn’t long ago that ByteDance (TikTok's parent company) started up the all-in-one platform for music creators and independent artists, where musicians can hold 100% ownership of their songs and receive 100% of the royalties. All these flexible contractual clauses have made it easier for them to promote their music and reach global audiences.
Now, it appears that ByteDance is also on the hunt for A&R scouts. Rising to the task of offering all the services of the traditional music business; finding, signing, and marketing artists, TikTok with the support of ByteDance has become a full-circle label company.
According to Murray Stassen (MBW), ByteDance is hiring new A&R managers in LA, NY, Miami, and Toronto. The job description requires candidates to “focus on the US music landscape, to sign and develop artists within the independent music community.”
ByteDance is targeting independent artists by marketing itself as the “#1 partner for artist development, promotion, and monetization.” In addition, TikTok has over 100 new music-related job openings in all parts of the world, including Europe (Germany, France, UK), South America (Brazil), South Africa, and Asia (India).
Major music and entertainment businesses like The Orchard (Sony Music Publishing subsidiary) will have no choice but to compete with TikTok’s parent company. The tension is already building up between TikTok and Sony Music, as the latter recently pulled its catalog from the music streaming platform Resso (Owned by ByteDance).
Further new restrictions are being set, as substantial businesses are now asking the fast-rising platform to change its licensing deals on a revenue-share basis. If this gets applied, music industry giants, along with the artists, will get paid every time their music is played in a monetized video on TikTok.
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