REPORT: Record Labels Want “Hundreds of Millions” from TikTok App

tiktok

The big three labels — Universal Music, Sony Music and Warner Music — have reportedly demanded more money for songs played within TikTok, one of the hottest new apps. Also, its Chinese counterpart Douyin.

According to reports, TikTok and Douyin are two of the fastest growing apps out there. They both focus a great deal on music, as many users tend to upload dancing and lip-synching videos set to popular music. To take the music away would be a massive hit (the bad kind) for the apps to say the least.

However, the deals between ByteDance Ltd. and the labels are coming up on their expiration date. Inside sources say they have failed to progress negotiations since last year. Following the success of ByteDance Ltd’s assets, the company is valued at $75 billion and the labels want money — “hundreds of millions of dollars in guaranteed money.”

TikTok’s head of global development Todd Schefflin has since responded, saying it shouldn’t be treated like a music streaming service — simply because it isn’t one.

“TikTok is for short video creation and viewing, and is simply not a product for pure music consumption that requires a label’s entire collection,” he said. The platform provides an exciting way for content to trend and break through to wider audiences.”

“TikTok’s music team partners with many great labels every day around the world forming long-term relationships, rather than just relying on transactional deals for a catalog of full songs,” he added.

Source: Bloomberg

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