Tiktok inks licensing deal as it gears up for music streaming launch
Tiktok has secured a licensing deal with a major music rights agency, marking a key step forward in the social media firm’s plans to launch a new rival to Spotify.
The Chinese video app today said it has entered into a multi-territory partnership with Merlin, which represents tens of thousands of independent record labels.
The agreement will give Tiktok access to roughly 15 per cent of the global recorded music market, including hits from artists such as Major Lazer and Sampa The Great.
It represents a crucial step forward for Tiktok owner Bytedance as it plots the rollout of a new music streaming service to take on the likes of Spotify and Apple Music.
Bytedance has been testing a new app dubbed Resso in India ahead of a wider launch, according to media reports.
The firm is yet to announce licensing deals with Universal, Sony and Warner, which together dominate the market. However, a source close to Tiktok said that other deals are already in place.
“We are seeing a new generation of music services and a new era of music-related consumption, much of it driven by the global demand for independent music,” said Jeremy Sirota, chief executive of Merlin.
“Merlin members are increasingly using Tiktok for their marketing campaigns, and today’s partnership ensures that they and their artists can also build new and incremental revenue streams.”
Tiktok, which was originally named Musically, has become wildly popular with young people and has racked up over 1bn users over the last three years.
However, the social media firm has also come under fire amid concerns about harmful content on its platform, cybersecurity flaws and potential censorship by Beijing.