This week, various players in the music industry made numerous decisions. From social media to major labels and government decisions, let’s take a look at what’s happening this week.
#1. TikTok shuts down its music platform
TikTok has announced the end of its music streaming service, TikTok Music, worldwide on November 28, 2024. Launched in five regions, including Indonesia, Brazil, Australia, Singapore, and Mexico, the platform was initially seen as a potential competitor to Spotify. However, TikTok is now shifting its focus to its "Add to Music App" feature, which allows users to add tracks discovered on TikTok to playlists on partner streaming services such as Spotify, Apple Music, and Amazon.
According to Ole Obermann, TikTok's Global Head of Music Business Development, this strategy aims to boost music listening on these partner platforms while maximizing value for artists and the music industry. This decision marks a strategic pivot for TikTok, which now prioritizes partnerships with established services rather than directly competing in the music streaming market.
#2. The reasons behind massive layoffs at Atlantic Music Group
Atlantic Music Group (AMG), a subsidiary of Warner Music Group, has announced a new leadership team following significant layoffs, marking a "new era" focused on cultural impact and creative expertise. Starting October 1, Elliot Grainge will assume the role of CEO, succeeding Julie Greenwald after two decades in the position. This restructuring aims to strengthen the creative and marketing teams at Atlantic Records, 300 Entertainment, and 10K Projects.
AMG remains committed to supporting artists while expanding their influence through the agility and creativity of its new leadership. Key appointments include Lanre Gaba as President of Atlantic’s Hip-Hop, R&B, and Global Music division, and Rayna Bass and Selim Bouab as co-presidents of 300 Entertainment. The reorganization is expected to drive bold innovations in artist development and promotion across the group's labels.
#3. Emerging artists are still struggling to get ahead
The resurgence of legendary artists like Oasis and ABBA has reached new heights, fueled by nostalgia and their enduring popularity. However, this dominance leaves little room for emerging artists, who struggle to sell tickets and organize tours without a well-established catalog of hits.
Oasis's reunion tour celebrating the 30th anniversary of *Definitely Maybe* led to a surge in music sales and online streams, but it also sparked criticism due to ticketing issues and dynamic pricing. Meanwhile, biopics and concert films featuring artists like Taylor Swift and Ed Sheeran continue to generate millions, further solidifying the grip of nostalgic artists on the market.
With the closure of numerous concert venues, up-and-coming artists like English Teacher are facing increasing challenges. They must consistently release new material to stay relevant, while established veterans thrive on decades-old hits. This situation highlights the growing divide between seasoned artists and today's emerging talent.
#4. The rise of social media in music distribution
The strategy for music releases has evolved, with artists increasingly choosing to unveil their songs on social video platforms like TikTok and Instagram Reels before they hit traditional streaming services. While this trend serves as an effective marketing tool, it risks confining music culture within social media, creating a bottleneck for streaming platforms. For example, Kendrick Lamar exemplified this shift by launching his latest single directly on Instagram Reels, where it garnered over 3 million likes without being available on streaming platforms. This move highlights a growing trend among artists to prioritize social media for music distribution, although it may impact long-term revenue and engagement.
Emerging artists are also following suit, turning to social media to build their careers. According to MIDiA, 25% of music creators now upload directly to user-generated content platforms without going through distributors. Many artists are likely to continue releasing their music on both social media and streaming platforms. However, the ephemeral nature of success on social media presents challenges, as songs may only achieve temporary popularity without the deeper engagement that streaming can provide.
#5. Australian staThe te of Victoria will invest $3 Million in music industry
the The Australian state of Victoria has unveiled a new financial support package for the music industry, focusing on strengthening concerts and festivals with a $3 million (approximately $2.7 million USD). This initiative includes the “10,000 Gigs: The Victorian Gig Fund,” which will provide funding for 144 venues across the state to host paid performances by local artists, offering essential support to venues and giving emerging artists the chance to perform live.
Additionally, $1 million in Music Works grants will support 92 music projects involving 600 music industry professionals, allowing both emerging and established artists to advance their careers. The funding will also extend to 22 festivals, each eligible for grants of up to A$50,000, with specific programs aimed at assisting artists and creative workers from culturally and linguistically diverse communities.
