As the showdown continues between Universal Music Group (UMG) and TikTok after the world's biggest record label pulled content from its artists and songwriters from the video-hosting social media site, it appears the ban has created a window of opportunity for independent music acts.
A look at its upper echelon Advertising signThe TikTok Top 50 chart shows that most of the top 20 entries on the chart are independent recordings, including Dasha's breakthrough “Austin”, Mitski's “My Love Mine All Mine”, Djo's “End” (aka actor/musician Joe Keery) of Beginning', and even Bobby Caldwell's 1979 song 'What You Won't Do For Love'. Before UMG's TikTok ban, independent artists, music by independent artists was already a significant part of the TikTok 50 chart, which debuted in September 2023, but with no work by UMG artists or songwriters on the platform — which from Advertising signIts recent estimates influence more than 60% of the most popular songs in the United States — the path to success seems clearer than ever.
But top independent music executives have a message for artists in the industry: “Not so fast.”
As the UMG ban drags on, independent music executives are advising artists to look at the bigger picture — and also use it as an opportunity to see what rights they do and don't control.
“I really hope we don't do what we do so often in the music industry, which is say, 'Oh, this is an opportunity for me to have an edge,' and then take advantage, but end up damaging the ecosystem,” he says. Richard James Burgess, president/CEO of the American Association of Independent Music (A2IM). “I think we're in a critical situation in terms of the amount of money being paid through [to artists]. This works well if you are an aggregator, distributor or company and have enough copyright. But it's extremely difficult for an artist to generate enough copyright to make a living if someone isn't famous.”
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 might impact your sales, but how much money is TikTok making from us trying to get that kind of viral spike? They should be paying for the use of the music and basically they are not. I think Universal has done a great thing here, and my membership, my board, supports that position.” (A TikTok spokesperson declined to comment for this story.)
In 2022 Advertising sign In the story, an executive from an independent company noted that artists on its roster earned about $150 from TikTok from about 100,000 videos made of their music. Meanwhile, in the same report, a marketer who spearheaded a campaign for a music single that was used in about half a million TikTok videos noted that his artist earned less than $5,000 from TikTok, even though the views grew into the billions.
While there are opportunities for growing numbers of independent artists to gain more traction on TikTok during the platform's impasse with UMG, “it's important for artists to use the opportunity to focus on their own art rather than chasing trending sounds or it's the one millionth person to cover a hit song,” he says Jody Whelan of the independent label Oh Boy Records, which was founded in 1981 by the late singer-songwriter John Prine and which today represents music by Prine, Kelsey Waldon and Arlo McKinley, among others. “If you're lucky enough to go viral on TikTok, you want people to stick around to hear what you have to say.”
For many contemporary acts, TikTok is a key component of their marketing plans, with labels and managers pushing artists to create content in hopes of driving listeners to streaming platforms. A 2023 report, commissioned by TikTok and facilitated by Luminate, noted that 62% of US TikTok users pay for a music streaming service, compared to 43% of all consumers. United States, the report said. “In other words, higher TikTok engagement — whether it's likes, views or shares — corresponds to increased streaming volumes.” The report also noted that TikTok users are more engaged in other areas of music-related consumption, arguing that in United States, 45% of TikTok users purchased music-related merchandise over a year, compared to 35% of total music listeners, while 38% of TikTok users attended a live music event during the year, compared to 33% of total music listeners.
Even with such statistics, Whelan says the TikTok/UMG battle should serve as a cautionary tale to realize how even so-called independent artists can be caught in the web of banning because of their affiliation with UMG or UMPG. “This should also serve as a reminder to the independent community: You can't rely on someone else's platform to reach your audience,” says Whelan. “This month it's UMG, next month it could be your distributor. The algorithms and priorities of social media companies and streamers are constantly changing. You need to be able to control the means by which you communicate directly with your audience, whether via email or text (we still send postcards to our fans!).
CEO Stem Milana Lewis agrees, seeing the situation as “a great moment to highlight the difference between independence and autonomy. Artists believe they are independent when they make a deal with the independent distribution arm of a major label because the terms of their deal can be more flexible. In reality, they still have very little control over their rights and this is a great example of how a major label decides on their behalf whether or not their music is available on a platform and whether or not they are willing to trade profits for exposure. “
Independent artists should take this time to review their relationships with all social media and make sure they're taking full advantage of each platform despite TikTok's current dominance, he says Seth Faber, Stem's general manager of music distribution and payments. “Time will tell if Universal's maneuver will result in a meaningful redistribution of the viral pie. Meanwhile, artists should continue to lean towards the full landscape of snackable content,” says Faber. “The power of Instagram Reels, Spotify Clips and YouTube Shorts should not be underestimated. Diversify those content portfolios.”
For Burgess, UMG vs. TikTok is a repeat of an age-old battle pitting the industry against artists, with artists often getting the short end of the stick. “[TikTok] plays this exposure-discovery advertising game. How many times do we get stuck on it?' Burgess asks. “Radio hasn't paid [artists] for recorded music. MTV didn't pay. We keep making the same mistakes. The good thing is that Universal is pretty big, and especially with the releases and everything, the propellers from that go a long way.”
Burgess further likens the UMG-TikTok battle to the ongoing battle with secondary ticket markets, saying that most of the money is not going to the artists. “That's the crux of the problem,” he says. “It would be good if people did the right thing here and came together to get a better deal for everyone.”
