TikTok has entered into a direct global licensing deal with a prominent independent India-headquartered record label, Tips Music.
The partnership, announced Monday (November 25), will make over 31,000 Tips-owned songs accessible to TikTok users worldwide, excluding China and India.
MBW understands that Tips’ previous deal with TikTok went through Merlin, the digital rights agency representing independent music companies.
The blanket licensing deal between TikTok and Merlin officially expired on October 31, after TikTok scrapped re-licensing discussions with the org, blaming “operational challenges with Merlin in the past where music that is not quality controlled for copyright is delivered”.
Tips’ direct deal with TikTok means that the company has become the latest in a string of independent music companies to confirm that they’ve struck direct deals with TikTok, including UnitedMasters, a Merlin member, and Ditto Music, in the wake of its split from Merlin.
TikTok and Tips Music said the collaboration responds to the growing global appetite for Indian music.
Kumar Taurani, Managing Director of Tips Music, told MBW in April that India’s streaming market “is on the cusp of a digital boom with unprecedented opportunity”.
Luminate, in its recent Year-End report for 2023, reported that India is positioned to become the world’s biggest streaming market by volume. In 2023, the country ranked second after the US in terms of total on-demand music streams.
Tips said the partnership with TikTok provides TikTok users seamless access to Tips’ music library that features genres from Bollywood classics to regional language hits.
“We have seen an increased consumption of Indian music globally. Several existing TikTok trends hold testament to it. This direct strategic partnership with ByteDance marks an important step in expanding the global footprint and engagement of Tips Music,” Taurani said.
Founded in 1988 by Kumar Taurani and Ramesh Taurani, Tips Music’s portfolio includes soundtracks from films such as Khalnayak, Raja Hindustani, Raaz, and the recent Ponniyin Selvan series. Over the decades, Tips has collaborated with Indian artists including Alka Yagnik, Kumar Sanu, Arijit Singh, and A.R. Rahman.
“This direct strategic partnership with ByteDance marks an important step in expanding the global footprint and engagement of Tips Music.”
Kumar Taurani, Tips Music
“The TikTok platform has a massive audience base and this deal [improves] the discovery of our music. I would like to thank TikTok and our CEO, Mr. Hari Nair, for weaving this direct deal,” Kumar Taurani said.
In the fiscal Q2 ended September 30, Tips Music reported 32% YoY growth in revenue to INR ₹806 million (USD $9.62 million at the average exchange rate for the quarter). For the fiscal first half, revenue grew 36% YoY to INR ₹1.545 billion ($18.44 million).
The TikTok deal marks Tips Music’s latest partnership after the company inked a deal with Warner Music in March, and with Facebook in December 2020.
For TikTok, the deal with Tips Music follows a new deal struck with the International Copyright Enterprise (ICE) about a week ago to continue providing support for songwriters and music creators globally.
Interestingly, India’s government has blocked ByteDance-owned TikTok in Tips’ home market of India since 2020.Music Business Worldwide