Hey everyone,

TikTok has emerged as a significant platform for music discovery, but it's been sparking notable discussions in the music industry recently. From negotiations with labels to improve artist compensation, to Universal's decision to remove its songs, and the US government's threat to ban the app unless it sells its American operations by January 2025, TikTok is under mounting pressure.

In this newsletter, alongside these developments, I'm sharing a review of the latest album by NxWorries, the duo of Anderson .Paak and Knxwledge, which is definitely worth checking out.

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📱 TikTok under pressure

Essential for music discovery

When TikTok started booming in 2018, the music industry quickly saw it as a game-changer. Unsigned artists like Lil Nas X suddenly became Billboard contenders thanks to the app alone. By 2020, when Fleetwood Mac's "Dreams" went viral, it was clear TikTok was reshaping music consumption, proving that even old tracks could find new life with the right exposure.

This has been confirmed over the last four years. Some established superstars used it to create new songs such as Drake or Doja Cat and a recent report from TikTok shows how the app fuels music discovery, especially for the younger generations.

🏫 Under government scrutiny…

In a context where the US has been increasingly scrutinizing foreign tech companies, particularly those with ties to China, over data privacy and national security risks, TikTok is seen as a threat by the United States. In May 2024, Biden signed a law mandating TikTok's Chinese parent company, ByteDance, to sell its stake in the app or face a ban in the US. The law gives ByteDance a 270-day deadline to divest, with a possible 90-day extension. This move follows concerns from both Republicans and Democrats that TikTok could be used by the Chinese government to access sensitive US data and potentially spy on Americans, despite TikTok's assurances that US user data is stored securely in the US and Singapore​.

Even before that announcement, it faced similar sanctions under Trump’s administration. It has also been forbidden to download the TikTok app for state government employees in 34 American states but also in Europe, as the European Commission banned it for its employees.

👩‍⚖️ And in a battle with Universal Music

Earlier this year, UMG (Universal Music Group) pulled its music from TikTok, citing concerns over insufficient compensation for artists and the potential misuse of AI to clone artists and their work without fair compensation. This led to a blackout of UMG's music on the platform, significantly affecting many artists who rely on TikTok for promotion and engagement​​.

After months of negotiation, the two companies reached a new licensing agreement. This deal includes improved remuneration for UMG's songwriters and artists, enhanced protections regarding the use of AI, and new promotional and engagement opportunities on TikTok. UMG's music is now back to the platform, allowing users to once again create videos with artists signed to Universal.

📉 TikTok effect isn’t the same

Next to these concerns, TikTok’s relationship with the music industry was never sustainable and it might not be the gold mine the music industry hoped for.

• There aren’t as many newcomer artists that have hits that make it outside of TikTok, now it’s mainly the big stars like Billie Eilish having the biggest songs on the platform. The upside of this might be for artists as we might be done with labels putting a lot of pressure on artists to make content on TikTok to promote their music.

• A report showed that a large portion of music in the app isn’t the same version as the studio versions with sped-up versions or remixes. Several studies showed that a TikTok trend doesn’t generate as many listens on streaming platforms than before. A TikTok trend can most of the time just remain a TikTok trend and not generate such a big increase in music sales.

To counter these risks, TikTok is diversifying. It's forming an investment team to acquire music content and companies, aiming to reshape its music business and influence the broader market. Additionally, ByteDance, TikTok’s parent company, is investing $2.1 billion in Malaysia to develop an AI Hub.

These recent investments indicate a shift for the company. Despite TikTok being a major music discovery source, the music industry has never seen the social media platform as an ally. While the future is hard to predict, these developments suggest that TikTok is evolving, and new elements might significantly change its role in the music industry.

💿️ NxWorries - Why Lawd?

NxWorries (Anderson .Paak & Knxwledge) are back with a new album! After teasing us with “Where I Go” featuring H.E.R. in 2022, we’ve finally got a full project a year and a half later.

The album is a blend of soulful, funk and R&B vibes, showcasing Anderson .Paak's smooth style. After his highly successful collaboration album with Bruno Mars, Anderson .Paak keeps it simple, embracing Knxwledge’s amazing Rap / R&B beats. The guest features fit perfectly, with standout appearances from Thundercat, Snoop Dogg, October London and Earl Sweatshirt.

Favorite song: MoveOn

If you want to discover more new music, I’ve also curated the playlist featuring my favourite tracks released in the past few months 😉 

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Have a nice weekend!