This is becoming a running story.
MBW reported yesterday (October 24) that UnitedMasters, one of the largest distribution and services platforms for indie artists, had signed a new direct licensing deal with TikTok.
That deal, say sources, will supersede UM’s previous TikTok licensing agreement, which went through Merlin.
Now another major global indie distribution platform has confirmed that it has inked a fresh direct deal with TikTok: Ditto Music.
To date, UK-born Ditto’s distribution business has represented over a million registered artists.
Acts who pushed their music through the company in the early stages of their careers include Ed Sheeran, Stormzy, Myles Smith, and Sam Smith.
Established acts currently distributing their music through Ditto include Chance The Rapper, Russ Millions, and Darkoo.
Like UnitedMasters, Ditto previously licensed TikTok through Merlin.
Lee Parsons, CEO and co-founder of Ditto, confirmed to MBW today (October 25) that his team has struck a new direct agreement with TikTok after sources tipped us off on the deal.
Parsons said: “We’re happy to confirm we have a new direct agreement with TikTok, which includes elements covering CapCut, the main TikTok platform, and TikTok’s Commercial Music Library. As a result of this agreement, we have secured improved commercial opportunities for our artists.”
Added Parsons: “We’d like to publicly thank Merlin for their hard work and expertise to date. We remain a member of Merlin.”
TikTok recently walked away from negotiations over potentially re-upping Merlin’s deal, blaming “operational challenges with Merlin in the past where music that is not quality controlled for copyright is delivered”.
As a result of that move, labels and distributors who previously licensed TikTok through Merlin – and wish to continue monetizing their music on the platform – now have to strike direct agreements with the ByteDance service.
Merlin’s blanket deal with TikTok expires next week (October 31).
In the wake of the two parties’ re-licensing talks ending, Merlin has flung its own accusations at TikTok, suggesting that ByteDance is trying to “[fragment] the Merlin membership, in order, we believe, to minimize their payout.”
Ditto Music is best known for its indie artist distribution offering, which enables acts to keep 100% of their royalties in exchange for an annual fee.
The company also runs artist management and music publishing operations, in addition to ‘label’-type services including promotion and sync.
Merlin represents over 30,000 copyright holders releasing music through approximately 500 labels/distributors.
As MBW reported last week, Merlin’s Eire-registered company collected GBP £998.4 million (USD $1.24bn) on behalf of its members in 2022.
Over 98% of that figure is understood to have been distributed to Merlin members.
However, Merlin’s own admin costs have been increasing in recent years.
In 2022, those admin costs amounted to GBP £8.95 million (USD $11.1m), around double the size of the org’s equivalent costs in 2020.
Earlier this month, Ole Obermann, Head of Music Business Development at TikTok, told MBW that his company’s decision to exit re-licensing discussions with Merlin “isn’t about bad blood with Merlin”.
He added: “By doing direct deals, if we detect any kinds of content copyright issues, we can address it directly. It’s that simple.”
MBW understands that some large Merlin members including EMPIRE and Beggars Group already have direct licensing agreements in place with TikTok.Music Business Worldwide