How Social Media Platforms Affect Music Consumption

Summary

Are social media platforms compensating musical artists enough for their IP? Although music companies claim social platforms cannibalize sales, the platforms say they give artists much needed exposure. Who is correct? The study examines the impact of TikTok on music consumption and revenue. It highlights what TikTok pays studios and discusses the concerns from Universal Music Group (UMG) regarding inadequate compensation for its artists.

Additionally, it mentions that videos on TikTok function as promotional materials or trailers for full-length productions. The study uses a  difference-in-difference model to analyze the data. It concludes that music labels can sharpen their licensing agreements based on the findings.