The ongoing battle between TikTok and Merlin, the global rights agency representing independent music labels, has shaken the music industry. TikTok has accused some of Merlin’s members of streaming fraud, specifically altering songs to claim royalties under false pretenses. Many suspicious tracks were flagged, sparking concerns about the integrity of Merlin’s member companies.
TikTok’s Strategic Move: Breaking Up Collective Power
However, beyond the fraud allegations, TikTok’s actions seem to have another motive: weakening Merlin’s collective bargaining power. Merlin represents a significant share of independent music, and TikTok’s refusal to negotiate with the group pushes individual labels and distributors into separate deals, giving TikTok more control.
Internal Tensions Emerge
Merlin’s membership has evolved since its founding, now including a wide range of companies, from premium indie labels to DIY platforms like DistroKid. This diversity has created internal tensions, with some companies more focused on short-term revenue than artistic value.
The UMG Influence: A Catalyst for TikTok’s Exit
TikTok’s recent deal with Universal Music Group (UMG), where it committed to protecting against AI-generated and manipulated content, may have also influenced its decision to end negotiations with Merlin.
The Future of Independent Music
This conflict highlights the ethical and economic tensions in the modern music industry. TikTok’s push for control and Merlin’s internal challenges are shaping the future of independent music licensing and royalties, raising questions about the sustainability of collective bargaining in a rapidly changing digital landscape.
It will become increasingly challenging for artists and labels to remain independent. In this case, the only solution is to come together, working towards a common goal: to grow the careers of independent artists, ensuring that they continue to have a voice in the future. With our plans, we always strive to support artists because we understand that the market needs professionals and quality. If you, too, want to be part of our team, reach out to us now!