Two years ago, we asked TikTok if it was slowly turning into a record label.
this ByteDance’s platform It recently entered the music distribution market with its SoundOn service and is recruiting A&R executives with record label experience.
Today (June 18) MBW can reveal Tik Tok Taking this evolution to the next stage – planning Obtain and invest in music rights.
We know that Tik Tok An internal Music content investment team Headquartered in Los Angeles, New York and San Jose, it focuses on “Collaboration or acquisition opportunities in global music content”.
in other words, Tik Tok Moving in The highly competitive music M&A market.
It’s clear that it’s looking at the world investment bank and private property rights Find the senior executive responsible for the work.
This information is provided by Tik Tok MBW discovered the new job ad today (June 18).
These ads seem to indicate Douyin The new investment team will look to acquire copyrights, as well as invest in music companies.
TikTok is recruiting for first of two positions in Los Angeles, New York and San Jose Music content investment manager.
“The TikTok music content investment team is a newly established team focused on cooperation or acquisition opportunities in the global music content field. The team will work with the TikTok music content strategy team and operations team to evaluate market opportunities, execute cooperation or acquisition projects, and A detailed financial analysis and valuation of music content and related assets that will help shape the future of TikTok’s music business.
Douyin recruitment advertisement
According to the ad, the successful candidate will be asked to “develop and implement an investment strategy Obtain and managing music content”.
Applicants need at least three years of work experience in a reputable company invest bank, management consulting firmor private fair company.
The ad stated that a person hired for the position would be required to “evaluate [TikTok’s] Develop music content acquisition strategies by conducting rigorous industry research, Keep an eye on the ongoing music investment landscapeand provide relevant analysis and insights as well as feasible suggestions to senior management.
TikTok says the successful candidate will “Help shape the future of the TikTok music business”.
The second job ad we found was for a more senior role Music content investment executive.
TikTok is hiring for this position in Los Angeles and San Jose. This person will “develop and implement the Douyin The goal of music content operation”.
They will also be asked to oversee the “preparation of financial valuation models,” according to TikTok’s job ad. target company Within the broader music ecosystem, including market size and growth assessments, financial forecasts and synergy assessments”.
“[The candidate will] Evaluate music content acquisition strategies by conducting rigorous industry research, closely monitoring the current music investment landscape, and providing relevant analysis and insights and actionable recommendations to senior management.
Douyin recruitment advertisement
To fill this role, Tik Tok Looking for individuals with a bachelor’s or master’s degree in finance, economics or a related field, add At least five years of work experience A reputable investment bank, management consultancy or private equity firm.
Strong corporate finance knowledge and valuation modeling skills are also required.
Additional TikTok priority qualifications Music content investment manager The role includes “familiarity with global music content, including artists, repertoire, trends, asset valuations, trend drivers, etc.”
Also required is knowledge of digital music distribution and music industry trends across all genres.
According to the descriptions in the two advertisements, Douyin The new team will work with the platform’s music content strategy team and operations team to “evaluate market opportunities, execute cooperation or acquisition projects, and conduct detailed financial analysis and valuation of music content and related assets, which will help shape TikTok’s music business.” s future”.
What does this news mean for the music rights industry?
Douyin The intent of investing in music content and companies may be met with some concerns by major music rights holders.
One potential strategy behind this move is SoundOn by TikTok Services that distribute independent artists on TikTok and other services.
Tik Tok It’s possible that SoundOn is seeking a larger portion of the music recorded by the artists it helps develop – especially if SoundOn sees these artists becoming hits regularly… and then getting signed to a major label.
For example, Tik Tok Rising indie bands could be offered deals for a share (or full ownership) of their catalog before any majors had a chance, effectively cutting off the pipeline.
Another time Tik Tok Investing in an artist’s music? What would prevent a platform from prioritizing the promotion of its own content?
Clearly, a careful balance needs to be struck here and elsewhere. Douyin Promote music signed by major labels…to avoid the kind of publicity we’ve seen between the two Tik Tok and universal music group earlier this year.
Another possibility: Vintage catalog tracks often go viral Tik Tok – Sometimes it’s not always the most obvious/well-known copyrights that do so.
possible Tik Tok Moving towards an M&A strategy Access to a relatively unpopular back catalog Have its services exploded—or will they?
One last thought: if Tik Tok Does it begin to acquire music rights (or at least long-term licenses of music rights), could it set a precedent for other competing platforms like Google-owned YouTube and Meta-owned Instagram to start thinking about doing the same thing?
Second, we have to point out that tech giants acquiring music tech startups and hiring their teams to help bolster their capabilities is nothing new.
Over the years, we’ve seen companies like Apple (see Shazam) and Spotify (see Sonantic) invest heavily in startups that are then integrated into their own platforms.
Yet the question everyone is asking today is: What kind of company Will TikTok’s new team seek investment?
Between the generative AI craze and TikTok’s own extensive research in the field, could it be planning to acquire an AI-related startup to accelerate its ambitions in this area?global music business
