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Inside TikTok’s Money Squeeze on Independent Labels: ‘This Is a Classic Divide-and-Conquer Situation’
TikTok says it is ending its licensing agreement with indie-label trade group Merlin because of 'fraud,' but sources say 'it's purely about money.'
Apparently with no advance notice, TikTok announced that it is ending its deal with Merlin — the 500-plus member nonprofit independent-label trade group that was created to place indies on more-equal footing with the majors — and instead will negotiate with each label individually. (In some cases, that may be possible: In a different but related situation, the National Music Publishers Association ended its blanket agreement with TikTok earlier this year, leaving its members with the option to negotiate their own deals. TikTok sources also maintain that even though the company has laid off dozens of staffers — including members of its music team — without backfilling positions, it will do a better job of policing fraud on its platform than it could in partnership with Merlin.
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