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Navigate the Future Blog

by Dave Van Dyke, President
Bridge Ratings Media Research

How TikTok is Disrupting the Music Industry

Dave Van Dyke August 8, 2024

TikTok has rapidly become a powerhouse in the music industry, and its influence continues to grow. our work with the radio and record industries tracking user consumption of music has yielded valuable insights about how TikTok is shaking up the music business and its multifaceted impact on consumers

The Digital Revolution in Music Discovery

The digital age has revolutionized how we discover, consume, and share music. Social media platforms have shifted the power of music discovery from major labels and traditional media to users and artists themselves. Among these platforms, TikTok stands out as the most disruptive force.

TikTok’s Positive Impact on the Music Industry

1. Amplifying Artist Discovery

TikTok’s algorithm is designed to surface new and trending content, giving unsigned and lesser-known artists a chance to shine. With a good, viral-worthy song, any artist can gain popularity quickly.

2. Viral Success Stories

The platform’s vast user base and rapid trend adoption mean that songs can become overnight sensations. Early examples include Lil Nas X’s “Old Town Road,” Doja Cat’s “Say So,” and Megan Thee Stallion’s “Savage,” all of which skyrocketed to fame through TikTok.

3. Major Labels Chasing Viral Artists

Major labels are now actively seeking out viral TikTok artists to sign, giving independent artists significant leverage in negotiations.

4. Reshaping Music and Artists

Both artists and labels are rethinking their music to fit TikTok’s viral trends. This often involves creating songs with catchy hooks, memorable lyrics, or danceable beats. While some artists see this as compromising their artistic integrity, others embrace the challenge.

5. Lucrative Licensing Agreements

TikTok pays royalties to artists and labels for the use of their music. Although it takes a high volume of videos to generate substantial income, this system has increased revenue for many artists.

6. Promoting Remixing and Collaboration

TikTok encourages users to remix songs and create split-screen duets with artists, boosting song popularity in unexpected ways. RAYE’s “Escapism” is a prime example, reaching No.1 on the UK charts after being remixed and sped up by users.

The Negative Side of TikTok’s Disruption

1. Over-Reliance on TikTok

Some of the industry’s biggest artists have expressed frustration with the pressure to create viral content. Halsey, FKA Twigs, and Charli XCX are among those who have spoken out about the demands from labels and managers.

2. Attention Span Issues

The short-form nature of TikTok has contributed to shorter attention spans among users, sidelining more lyrically and sonically complex music. This shift is seen by some as a decline in musical artistry.

3. Impact on Artist Revenue

While TikTok can be lucrative, it also presents challenges. Copyright infringement is a significant issue, and many artists go viral without seeing a corresponding increase in revenue. The royalties system often requires millions of video appearances to be financially viable.

TikTok User Trends

To understand TikTok’s impact, it’s essential to look at some key user trends:

  • Massive User Base: TikTok has 1.56 billion monthly active users globally as of 2024.

  • High Engagement: US adult users spend an average of 53.8 minutes per day on TikTok .

  • Demographic Reach: 52% of TikTok users are men, while 48% are women1. Additionally, 1 in 4 TikTok users are under 20 years old.

  • Regional Popularity: The United States has the highest number of TikTok users, with 170 million monthly active users.

  • TikTok has undeniably transformed the music industry, and its influence shows no signs of waning. While it offers exciting opportunities for artists, it also presents challenges that need to be navigated carefully. The future will reveal whether TikTok can provide sustainable revenue for artists while maintaining the integrity of their music.

Dave Van Dyke, dvd@bridgeratings.com

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How On-line Playlisting Can Save Music Radio

For music programmers who have been utilizing on-demand streaming data to properly align their on-air music with true music consumption, here's some news: Playlisting has become the dominant way most music fans listen.

At Bridge Ratings we have been tracking music consumption through on-demand streaming services for over four years. We now share this data with our music radio clients seeking to properly align their on-air song exposure to their listeners' actual consumption.

In a typical year we process and analyze hundreds of millions of streams from across the U.S. and, more specifically, by market and station.

Over the past three years we have undertaken an analysis of music streaming consumption and learned almost immediately in the fall of 2015 that playlisting plays a significant role in the way the average person consumes music through on-demand streaming platforms.

Playlist is a term to describe a list of video or audio files that can be played back on a media player sequentially or in random order. In its most general form, an audioplaylist is simply a list of songs, but sometimes a loop.

What We've Learned

[More...]

Read the full article in the Navigate the Future Blog.

For further information or advisement contact Dave Van Dyke:  dvd@bridgeratings.com  |  (323) 696-0967

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