Is UMG’s TikTok Standoff Creating More Opportunities for Independent Artists?

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TiKTok music might benefit indie artists following Universal Music Group's banning the app.

As the showdown continues between Universal Music Group and TikTok after the world’s biggest record company pulled content by its artists and songwriters from the video-hosting social media site, it seems as though the ban has created a window of opportunity for independent music acts.

Burgess continues, “TikTok is an extremely bad actor in terms of the types of deals they do and the structure of their deals. It’s almost like trying to play the lottery — if you get a viral TikTok, it can have an impact on your sales, but how much money does TikTok make from us trying to get that sort of viral spike? They should be paying for the use of music and they’re effectively not paying. I think Universal did a great thing here, and my membership, my board, supports that position.” .

For many contemporary acts, TikTok is a key component of their marketing plans, with labels and managers urging artists to create content in hopes of driving listeners to streaming platforms. A 2023, commissioned by TikTok and facilitated by Luminate, noted that 62% of U.S. TikTok users pay for a music streaming service, compared to 43% of all consumers.“TikTok user engagement metrics are strongly associated with streaming volumes,” in the United States, the report stated.

Independent artists should be taking this time to examine their relationships with all social media and make sure they are taking full advantage of each platform despite TikTok’s current dominance, says, Stem’s general manager of music distribution and payments. “Time will tell if Universal’s maneuver will lead to a meaningful redistribution of the viral pie. In the meantime, artists should continue to lean into the full landscape of snackable content,” Faber says.

 

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