The first direct deal between TikTok and independent distributors has been announced, following split from Merlin.

UnitedMasters has become the first independent distributor to announce a direct deal with TikTok, following the platform’s decision not to renew its licensing agreement with Merlin. Their joint announcement, titled “UnitedMasters and TikTok Celebrate Independent Music Together,” highlighted the deal as a step forward “Through Direct Deal.” However, this move has raised concerns among independent artists and labels who worry that terms negotiated individually may not offer the same benefits as those previously secured under Merlin’s collective representation.

Previously, Merlin’s collective agreement meant that independent artists and labels could benefit from unified representation, giving them a stronger bargaining position in negotiations with platforms like TikTok. With Merlin steering the ship, independents enjoyed protections and, ideally, fair terms that individual agreements might struggle to match. Now, as TikTok shifts away from collective licensing, the question arises: are direct deals beneficial for artists? The general consensus so far has been “not so much”.

The exact terms of the UnitedMasters deal have not been disclosed, leaving us to speculate if artists will still receive the benefits they had under Merlin’s representation. Industry insiders suggest that these direct deals could lack the collective support and advantages previously afforded by Merlin, potentially impacting royalty rates and access to promotional opportunities on TikTok.

TikTok’s Commercial Music Library is part of the package, but without transparency, it’s hard to say if the new deal matches the level of support once guaranteed through Merlin. Early leaked details of renewal terms suggested indies were being backed into a corner, forced to accept a significant pay cut or be booted off the platform.

As the end date for TikTok and Merlin’s previous deal draws closer (October 31st), the independent music community is bracing for possible fragmentation. There is great concern that without Merlin, independent distributors and labels will be left to fend for themselves, which could make it challenging to secure favourable terms. Many independents hope that TikTok will return to the negotiating table with Merlin, which could restore collective bargaining power for independent artists. However, the UnitedMasters deal suggests TikTok has no intention of opening up talks with Merlin again.