Dec 13th | Calvin's TikTok Countdown

Hey everybody!

I hope you’re well. In this week’s newsletter we’re explaining what you need to know about the impending TikTok sales deadline, helping songwriters navigate the MLC’s DURP tool, and dishing on some important but sad news out of Downtown Music Holdings and CD Baby.

But first—some housekeeping. This will likely be the last newsletter before Jan of 2025 where will pick back up on our normal cycle. I hope everybody can use the holiday to rest, recharge, and catch up on reading in topics other than music industry scoops.

As per usual, or sponsor is Habitat Financial. Habitat is the simplest royalty accounting software on the market with more options for customization than its leading competitors. If you need to pay rights-holders, check out www.habitat.financial, and get back to what’s important—the music.

Alright onto the news.

🚨 TikTok Shutdown Looming in January 2025

A federal appeals court just upheld the U.S. government’s “divest or ban” policy, clearing the way for TikTok to face a shutdown in the U.S. on January 19, 2025, unless a last-minute intervention by the Supreme Court occurs.

The court’s reasoning? Protecting free speech in the U.S. from potential foreign adversaries and citing strong evidence that TikTok is allegedly used by China for espionage. This sets up a high-stakes ultimatum:

• TikTok must sell its U.S. operations or shut down entirely.
• TikTok remains adamant—they won’t sell and are banking on the Supreme Court to step in.

Meanwhile, President-Elect Trump has hinted at intervening to block the shutdown, though how this would happen remains unclear.

What does this mean for creators? It’s a stark reminder that platforms we rely on for distribution can vanish overnight (RIP MySpace).

• Now’s the time to diversify! Build your presence on Instagram, YouTube, or other platforms.
• Talk directly to your TikTok audience about the looming ban and guide them to follow you elsewhere or even better—direct them to your website where you can control and collect valuable fan data.

💼 Layoffs at CD Baby Fuel Downtown Sale Speculation

Downtown Music Holdings has confirmed layoffs at CD Baby, primarily affecting its Creator Services team. The move is part of an effort to consolidate CD Baby and bring it closer to Downtown’s other holdings.

Here’s the industry context:

• Layoffs aren’t unique to CD Baby. Companies like Distrokid, Warner, and Universal have made cuts over the past year.
• Downtown currently operates three distribution platforms (CD Baby, DashGo, and FUGA), which some view as redundant.

The Rumor Mill: There’s speculation Downtown may be gearing up to sell CD Baby, with likely buyers ranging from private equity firms to major music companies (hopefully not Spotify). This would mark a significant shift in the indie distribution space.

💰 MLC’s DURP Program Matches 100+ Indie Distributors

The Mechanical Licensing Collective (MLC) just hit a milestone: Over 100 independent distributors are now signed up for its DURP (Distributor Unmatched Royalties Portal) program. This initiative has already paid out millions in previously unmatched mechanical royalties to songwriters.

Why this matters:

• Before DURP, it was notoriously difficult to locate and collect unmatched royalties.
• The MLC says 70% of historical unmatched records have now been resolved.

Indie Artists, Take Note: If you’re a songwriter and haven’t registered with the MLC, you could be leaving royalties on the table. Check out DURP to see if you’re owed a payout!

2025 was another big year for the music industry—whether it’s platforms facing shutdowns, companies making strategic cuts, or royalty systems becoming more efficient. Stay ahead of the curve with Indie Insider.

Until next year!

Calvin