TikTok is building an investment team to acquire music content and companies

Two years ago, we asked if TikTok was slowly turning into a recording company.

I A platform owned by ByteDance recently entered the music distribution market with its SoundOn service, and has been hiring A&R executives with record label experience.

Today (June 18) MBW he can express that TikTok takes this evolution to the next level – with this program acquire and invest in music rights.

We have learned that TikTok build a house Music Content Investment Team based in Los Angeles, New York, and San Jose, which he specializes in “partnerships or opportunities to locate music content on a global scale”.

In other words, TikTok enters into competitive music M&A market.

By telling, it looks at the world of investment banking again private equity to find managers who will lead this case.

This information was revealed by TikTok in the new job adverts spotted by MBW today (June 18).

The ads seem to reflect that TikTok a new group of investors will seek to acquire publishing rights, and invest in music companies.

The first of two roles TikTok is hiring for in Los Angeles, New York and San Jose is an organization. Music Content Investment Manager.

“TikTok’s Music Content Investment Team is a newly formed team focused on partnering or sourcing opportunities in the world-class music space. The team will work with TikTok’s music content strategy team and functional groups to explore market opportunities, develop partnership or acquisition projects, conduct detailed financial analysis and estimates of music content and related assets that can help shape the future of TikTok’s music businesses. “

Tiktok job ad

According to the ad, the successful candidate will be required to “develop and implement investment strategies to gain and manage music content”.

Applicants will need at least three years of experience in a reputable environment investment the bank, Management consulting firmor which is confidential equality it is strong.

The ad states that the person hired for this role will need to “test [TikTok’s] music content acquisition strategy through rigorous industry research, carefully monitoring the state of ongoing music investmentsand presents relevant analysis and insights with actionable recommendations to senior management.”

TikTok says that the winner will win “help shape the future of TikTok’s music businesses”.

The second job ad we saw was for an elderly person Music Content Leads to Investments.

TikTok is hiring for roles in Los Angeles and San Jose. This person will “develop and implement relevant investment strategies TikTok objectives in the performance of musical content”.

According to TikTok’s job ad, they will also be required to look at “revising the revenue model target companies in the broader music ecosystem, including market size and growth assessment, financial projections, and synergies assessment”.

“[The candidate will] Evaluate the music content acquisition strategy by conducting rigorous industry research, closely monitoring the status of ongoing music investments, and presenting relevant analysis and insights with actionable recommendations to senior management.”

Tiktok job ad

To fill this role, TikTok looking for someone with a Bachelor’s or Master’s degree in Finance, Economics, or relevant fields, plus at least five years of experience a a reputable investment bank, management consulting firm, or private equity firm.

Strong knowledge of corporate finance and pricing modeling skills are also required.

Some popular TikTok’s titles Music Content Leads to Investments the role includes “familiarity with global music content, including artists, tracks, trends, inventory ratings, trend drivers, etc.

Knowledge of digital music distribution and music industry trends across genres is also required.

According to the description in both advertisements, TikTok The new team will work with the platform’s music content strategy team and operations teams to “assess market opportunities, develop partnership or acquisition projects, conduct detailed financial analysis and valuation of music content and related assets that can help shape the future of TikTok’s music businesses”.

What does this news mean for the music rights industry?

TikTok the purpose of investing in music content and companies may be viewed as a particular concern by major music rights holders.

A possible strategy behind the move is evolution SoundOn for TikTok service, which distributes indie artists to TikTok and other services.

TikTok may want a bigger slice of the music recorded by the artists SoundOn helps promote – especially if SoundOn sees these artists go viral… and get signed to major record labels.

For example, TikTok it may offer a growing independent act a participation agreement (or full ownership) in the form of a catalog before any elites have a chance, cut through the funnel.

And once TikTok do you invest in artist music? What can prevent a platform from prioritizing the promotion of its content?

Obviously a careful balance will need to be struck when vs. TikTok the promotion of major label-signed music… to avoid the kind of social conflict we’ve seen in the past TikTok again World Music Group earlier this year.

Another possibility: Tracks from the back catalog tend to go further TikTok – and sometimes it’s not the most obvious/popular copyrights that do.

He might TikTok we have moved on to M&A programs to find the uninteresting back catalogue that – or will do in the future – explode its service?

A final thought: If TikTok is starting to acquire music copyrights (or at least long-term licenses of music rights), could it set an example when other competing platforms like Google-owned YouTube and Meta-owned Instagram start thinking about doing the same thing?

Second, we must point out that tech giants acquiring music technology startups and hiring their teams to help develop their skills is nothing new.

Over the years, we’ve seen the likes of Apple (see Shazam) and Spotify (see Sonantic) pour money into startups integrated into their platforms.

However, the question everyone will be asking today is: What kind companies Will the new TikTok team be looking to invest in it?

Between the generative AI boom and TikTok’s extensive research in the gen AI space, could it be planning to acquire AI-related startups to accelerate its ambitions in this field?Music Business Worldwide