TikTok may block millions of independent artists by late October

TikTok may block millions of independent artists in late October after walking away from negotiations with indie trade group Merlin.

Merlin represents about 15% of the global music market. It’s contract with TikTok on behalf of 30,000 indie distributors and labels including DistroKid CD Baby, Secretly and Beggars expires on October 31st.

Much like UMG’s dispute with TikTok earlier this year, Merlin claims that TikTok “does not want to pay a fair rate for the music that powers their platform.” They also site concerns that TikTok does not do enough to fight streaming manipulation and fraud.

Merlin was formed to present a united negotiating front for indies with DSPs, social media and any platform licensing music. Individual label or distributor licenses with TikTok would undermine that strength.

“This past Wednesday, with no warning, TikTok walked away before negotiations even began,” according to Merlin. “They informed us that (1) they do not want to renew our deal, which expires on October 31st, and (2) they intend to license some of our members directly.”

TikTok confirmed their intention to bypass Merlin: “We know that our community of over a billion music fans value the diversity and richness that independent music brings to our platform,” TikTok said in a statement. “We are committed to entering into direct deals with Merlin members in order to keep their music on TikTok.”

UMG eventually signed a new deal with TikTok, but not before all its music had been off the platform for more than a month. It’s unclear if Merlin’s diverse membership will all show they same resolve.

Bruce Houghton is the Founder and Editor of Hypebot, a Senior Advisor at Bandsintown, President of the Skyline Artists Agency, and a Berklee College Of Music professor.