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There’s a new turning point for the indie music scene on TikTok. The licensing agreement between TikTok and Merlin, the agency representing a plethora of independent labels, has officially expired.
TikTok is encouraging indie labels to sign direct licensing deals. While these deals aren’t drastically different from the previous Merlin-negotiated terms, there’s a significant twist: TikTok is now paying out royalties based on video views, not creations.
Traditionally, TikTok has emphasized “creations” – the number of videos featuring a song – as a key metric. This shift to a view-based model could have profound implications for artists. While it might benefit songs that go viral, it could potentially disadvantage those with fewer views, even if they’ve inspired countless creative renditions.
Direct deals offer artists greater control over their music’s licensing and the potential for higher revenue. However, they also come with increased administrative burdens and the risk of negotiating less favorable terms. For smaller independent artists, navigating the complex landscape of direct licensing can be a daunting task.
