The document outlines the evolution of the music industry from the 1940s to the present, highlighting the shift from reliance on physical formats and record labels to self-marketing and streaming via platforms like TikTok and Spotify. It details how independent artists now utilize social media for promotion, with TikTok becoming a crucial platform for virality and recording label attention. Additionally, it discusses the financial aspects of streaming royalties and how record labels are adapting their strategies in response to the changing landscape.

1. Read here

2. The Music Industry Now VS. Then
Then (1940s-1999)
● Physical music formats: Vinyl, 8-track,
Cassettes, and CD’s
● Hiring concert promoters, publicists, and
agents
● Radio popularity
● MTV
● Record labels more essential because you
couldn't self record as easily, very
expensive without a label. Also helped with
marketing
● Outbound Music Marketing (billboard ads,
Newspapers, radio)
Now (2000-Present)
● Social Media platforms to self market
(TikTok, Instagram, Facebook, Youtube,
etc.)
● Streaming (Spotify, Apple Music, Amazon
Music, Youtube Music, SoundCloud)
● Record Labels not essential, artists can
self record at home and publish music to
streaming platforms through Distrokid, CD
Baby, Tunecore, etc.

3. What’s a Record Label?
● Record Labels find and sign music artists
● Offer a band or an artist a sum of money to help them fund recording costs,
distributing and marketing their music
● In return, the artists must recoup back all of the costs spent on them until the
money is paid back, the label will still take a percentage of all profits
● Major Labels: Warner Brothers, Universal Music Group, Sony Music
● Independent Labels: Epitaph Records, Sub Pop, Island Records

4. Social Media Music Marketing
Today, Social Media replaces hiring somebody to market your music. Independent
artists rely on Tiktok, Youtube, and Instagram for this.
Ever since the pandemic, record labels have shifted their A&R and marketing
department to inbound approaches
A music artist going viral on Tiktok of a video of them singing, playing an
instrument, or their song going viral will most likely attract a record labels talent
radar
Having TikTok is a now a musician’s essential, even for major already signed
artists

5. Artists are rising to fame from TikTok
● Ashnikko, Lil Nas X and Loren Gray all rose to fame from their music
going viral on TikTok
● The popular “ABCDEFU” hit from Gayle went viral. An angsty nursery
rhyme
● Labels are scouting for viral talent on TikTok rather than in person
● This is an example of an inbound marketing approach

6. Halsey speaks out
The American singer-songwriter Halsey, posts a viral
TikTok of her writing in text boxes stating her record label
won’t let her release a song unless if she fakes a viral
moment on TikTok. “Everything is marketing.”
Watch Here
A follow up video posted 1 hour later is of her talking with
a man about her TikTok marketing strategy with a text box
and title saying, "I wish I was kidding lol."

7. Record Labels are asking TikTok for more money
● TikTok serves as another streaming platform combined with social media
● TikTok pays Artists 100% of royalties for the first year, then 90% the years after
● TikTok pays artists 3 cents per video made using your music.
● Major labels are asking for more royalties from Tiktok
● TikTok made $4 billion in profits last year
● Songs on TikTok are getting millions to billions of views
● According to a source from Bloomberg, an Industry executive says record labels
want two to ten times the amount of royalties they are being paid by TikTok

8. How streams are broken down to pay artists and labels

9. How streams are broken down to pay artists and labels
● Streaming platforms only pay artists $0.00069-$0.019 per stream
● The recorded music is broken down as 80% record labels take 64% artist take
16%
● Performance and mechanical royalties are 10% each
The amount of money an artist would make for 1,000,000 streams as a
signed artist from spotify would be
$.00437 x 1,000,000 = $4,370
$4,370 x 16% = $699.20
~$700 only for 1 million streams. Labels now want bigger pieces of the pie
from artists paid by TikTok’s generous 3 cent royalties.

10. References
Halsey. (2022). TikTok. Retrieved November 26, 2022, from https://www.tiktok.com/t/ZTRCMPGev/.
Day, Melody, and Amy DeYoung. “Musicians Who Started Their Careers on TikTok - Net Influencer.” Net Influencer, 1 Mar.
2022, www.netinfluencer.com/musicians-who-started-their-careers-on-tiktok.
Scarlett, Liz. “Machine Gun Kelly Recruits Sophie Lloyd as New Live Guitarist.”
https://www.loudersound.com/news/machine-gun-kelly-recruits-sophie-lloyd-as-new-live-guitarist, 24 May 2022.
Venkat, Mia. “TikTok Has Changed Music — and the Industry Is Hustling to Catch Up.” npr.org, 22 May 2022,
www.npr.org/2022/05/22/1080632810/tiktok-music-industry-gayle-abcdefu-sia-tai-verdes-celine-dion.
Times https://www.washingtontimes.com, The Washington, and Brad Matthews. “Record Labels Want More Money From
TikTok for Rights to Their Music.” The Washington Times, 9 Nov. 2022,
www.washingtontimes.com/news/2022/nov/9/record-labels-want-more-money-tiktok-rights-music.
Peoples, Glenn. “Who Gets Paid for a Stream?” Billboard, 24 Feb. 2022,
www.billboard.com/pro/music-streaming-royalty-payments-explained-song-profits.
“How Much Do Music Streaming Services Pay Musicians.” MusidDigi.com,
musicdigi.com/post/how-much-do-music-streaming-services-pay-musicians. Accessed 26 Nov. 2022.
Solomon, Aron, et al. “How Does TikTok Calculate Music Royalties? – InsideSources.” How Does TikTok Calculate Music
Royalties? – InsideSources, 28 Apr. 2022, insidesources.com/how-does-tiktok-calculate-music-royalties.
“TikTok Now Lets Musicians Make Actual Money From Going Viral.” Protocol, 9 Mar. 2022,
www.protocol.com/bulletins/tiktok-soundon-viral-music-royalties.