The Music Industry's Latest Nightmare? Short Form Video Platforms
Kristin Snyder is dot.LA's 2022/23 Editorial Fellow. She previously interned with Tiger Oak Media and led the arts section for UCLA's Daily Bruin.
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Short-form video-sharing platform Triller is set to pay Sony Music Entertainment $4.57 million after reaching a settlement over a breach of agreement lawsuit. The record company had initially sued Triller in 2022 after the company allegedly failed to pay music licensing fees. The agreement comes after Triller was over one year late on contract payments, according to Sony Music.
This isnāt the first time the Los Angeles-based startup has been in hot water with record labels. Universal Music Group sued Triller in January after the company allegedly missed nine months of licensing payments. In September, Triller settled a lawsuit from artists Timbaland and Swizz Beatz after the company did not make payments following its acquisition of their live streaming platform Verzuz. Amidst its legal troubles, the company failed to make good on its promise to go public last year.
Trillerās issues allegedly stem from its inability to actually pay the record labels it is striking deals with. But itās not alone in provoking the music industryās ire. Increasingly, relationships between record labels and short-form video platforms have soured.
Just look at TikTok. Though the company has consistently paid music licensing fees, record labels consider those payments insufficient. Universal Music Group, Sony Music Entertainment and Warner Music Group all wanted a portion of TikTokās significant advertising revenue last year. Some industry insiders hope to move away from relying on viral videos as a marketing strategy. And back in 2020, music publishing companies threatened to sue TikTok over copyright infringement, though the lawsuit did not come to fruition.
These spats havenāt stopped TikTok from becoming a music powerhouse that can both launch new artists into stardom and revive classic songs. The impact of a viral TikTok hit has made the platform a necessary evil for music labelsā marketing efforts. The same, however, cannot be said for Triller, which has fewerĀ users and lessĀ money than TikTok.
For its part, TikTok is trying to prove that it can function without the music provided by the labels. The platform began testing limitations on how many songs a user can upload in February. Last year, TikTok launched its own music platform SoundOn. To that end, some industry insiders worry that TikTok is trying to become a record label itselfāa move that would further strain relationships within the music industry.
Meanwhile, YouTube Shorts finally let creators use up to one minute of licensed music in their videos last year. YouTube, which helped launch new artists like Justin Bieber and Charlie Puth, used to have TikTokās ability to start careers. But as YouTube raked in advertising revenue, labels wanted royalty payments to increase. Some artists, including Paul McCartney and Taylor Swift, signed an open letter to Congress in 2016 that requested action against YouTube for hosting videos that violated copyright laws. Now, rights holders are paid a portion of a videoās ad revenue. Still, some artists, however, have found that YouTubeās royalty payment system is rife with errors.
Which is to say, it appears the music industry is re-living its YouTube war with TikTok and Triller. What remains to be seen is if TikTok manages to build out its own record labelāa move that could seriously threaten the music labels that have already been burned.
- Column: How We're Investing in Entertainment Tech in a Post-COVID World āŗ
- Triller's New CEO on Its Metrics and Music Controversies and the Company's Fight Club Plans āŗ
- Column: The Post-Label Music Industry Is Here. Here's How Artists, Businesses and Investors Can Prosper āŗ
- The EU's Article 17 Is Already Changing the Digital Music Landscape āŗ
Kristin Snyder is dot.LA's 2022/23 Editorial Fellow. She previously interned with Tiger Oak Media and led the arts section for UCLA's Daily Bruin.