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TikTok strikes landmark deal with Merlin to license music from independent labels: Tough times ahead for Spotify?

Editorial team by Editorial team
January 24, 2020
in News, Lifestyle
TikTok strikes landmark deal with Merlin to license music from independent labels: Tough times ahead for Spotify?
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ByteDance, the company behind popular TikTok, is apparently planning to launch its music streaming service to compete against the likes of Spotify, Apple Music, Google Music, and more.  

Dealing with big guns! 

The company expects to introduce the new app as early in a handful of places, mostly in an economically-backward country where paid music service has yet to garner a broader audience. Last year, reports were floating around saying hat Bytedance is trying to get licensing deals from Universal Music, Sony Music, and Warner Music.

Merlin and TikTok join hands

In the latest development, Merlin, the digital licensing hub for the world’s independent music sector, has entered into a multi-territory partnership with TikTok. Notably, the deal is effective immediately and represents a significant music partnership. However, the financial terms of the agreement were not disclosed.

Jeremy Sirota, CEO, Merlin, said:

“This partnership with TikTok is very significant for us. We see a new generation of music services and a new era of music-related consumption, much of it driven by the global demand for independent music.”

Represents 100’s of members from 60 countries!

It means the world’s leading independent music repertoire will be licensed for use on TikTok, wherever the platform is available across the globe. 

For the uninitiated, London-headquartered Merlin represents hundreds of members from more than 60 countries, including thousands of independent record labels, artist management companies, and distributors from virtually every country around the world. 

Sirota added:

“Merlin members are increasingly using TikTok for their marketing campaigns, and today’s partnership ensures that they and their artists can also build new and incremental revenue streams.”

Licensed over 25 key digital services

Merlin’s membership commands over 15% of the global recorded music market and includes repertoire from the world’s most influential and successful artists. 

With offices in New York and Tokyo, Merlin has licensed over 25 key digital services, including Alibaba, Boomplay, Deezer, Facebook/Instagram, JioSaavn, NetEase, Pandora, SoundCloud, Spotify, Tencent, and YouTube Music.

Uses TikTok for marketing campaigns!

TikTok, one of the world’s most downloaded apps in 2019, encourages creative expression through short-form video and has been used extensively by Merlin members. 

Ole Obermann, Global Head of Music, said:

“Independent artists and labels are such a crucial part of music creation and consumption on TikTok. We’re excited to partner with Merlin to bring their family of labels to the TikTok community.

These include Cosmo Sheldrake (AWAL), Dirty Heads (Better Noise), Falco Punch & Scooter (Kontor New Media), Los Palmeras (Leader Entertainment), Major Lazer (mtheory), Official HIGE DANdism (Pony Canyon), Reik & Haze (Cinq Recordings), Sampa The Great (Ninja Tune), Tokyo’s Revenge (Foundation Media) and Valentino Khan (Mad Decent).

Inspire and enrich people’s lives!

Through the TikTok platform, the company aims to inspire and enrich people’s lives by offering a home for creative expression and an experience that is genuine, joyful, and positive. TikTok has global offices, including Los Angeles, New York, London, Paris, Berlin, Dubai, Mumbai, Singapore, Jakarta, Seoul, and Tokyo. 

Main image credits: XanderSt/Shutterstock

Stay tuned to Silicon Canals for more European technology news

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