TikTok has been on a roll lately. The app recently ended up being the second-most downloaded application on the play store in 2019. Now, TikTok has reportedly signed a deal with Merlin. In case you didn’t already know, Merlin is a global agency that represents thousands of independent music labels and hundreds of thousands of artists.
Now, TikTok will be able to use music from all these artists and labels legally. These will be available in all countries where TikTok itself is available to download. This could only mean the user-generated video app is going to get more material for users to make content out of.
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Moreover, TikTok is now capable of expanding its own streaming service – Resso. According to TechCrunch, the deal covers the Resso application too. The deal also covers TikTok’s regular videos and sponsored videos created for marketing.
What could be TikTok’s larger plan?
The app’s parent ByteDance is reportedly gearing up to take on music streaming services. Apps like Spotify, Gaana and JioSaavn are popular streaming services in India right now. The Merlin deal means TikTok could eventually be a strong rival for these names. Moreover, the underdog app would certainly have a few extra features to offer besides just streaming.
“This partnership with TikTok is very significant for us,” said Merlin CEO Jeremy Sirota to TechCrunch. “We are seeing a new generation of music services and a new era of music-related consumption, much of it driven by the global demand for independent music. Merlin members are increasingly using TikTok for their marketing campaigns, and today’s partnership ensures that they and their artists can also build new and incremental revenue streams,” he added.
Besides the progress, monetisation is one sector where TikTok still must improve. Regardless, the app is certainly headed in the direction. The Merlin deal is the first major music deal the app has wrapped up. Perhaps we could see the company sign more deals with Sony Music, Warner Music and Universal Music later on. The company also just opened a new office in Los Angeles, considered the heart of the music industry in the US.