Oct 11 | Are new individual TikTok deals fair for labels?

Welcome back to this week’s Indie Insider newsletter, where we’re diving into the week’s hottest music industry stories. We’ve got some big ones for you today.

First up: Apple just pulled the plug on streaming app Musi, and now they’re being sued. Could this be the start of a blow back against tech companies using loopholes to access music?

Then, we’re looking at TikTok 's controversial new licensing deals. Spoiler alert: rights-holders are getting a raw deal.

And finally, Luminate just launched a new ranking system that measures artists by their cultural impact—and yes, the biggest name in music has already locked down the top spot.

Quick shout-out to our sponsor, Habitat Financial, the royalty accounting platform that helps labels streamline payments and manage artist royalties. If you’re a label looking to simplify your accounting, we’ve got you covered.

Let’s get into it!

Grey-area Streaming App Musi De-listed from Apple Store, Sues in Response

A bit of legal drama has erupted between Apple and Musi, the grey-area streaming app that pulls audio from YouTube and allows users to listen to it within its own interface. On September 24th, Apple delisted Musi from its App Store, which triggered a lawsuit from Musi. The app is claiming that Apple breached its contract and failed to act in good faith.

For those unfamiliar with Musi, the platform has managed to skate by without properly licensing music from rightsholders. Essentially, Musi has been benefiting monetarily from copyrighted content uploaded on YouTube, while artists, in turn, get compensated only via YouTube itself. This setup raises significant questions about how copyright laws are adapting—or not—to today’s rapidly evolving music technology landscape.

And this is no small-time app. Musi has been downloaded over 60 million times, showing just how widespread the issue of unauthorized music use can be. Apple likely made the right move here by delisting the app, but the lawsuit leaves the door open for further questions. Will the court ruling address only Musi's conflict with Apple, or will the app’s questionable business model come under fire too? We’ll be keeping a close eye on the outcome.

Details Emerge on Individual TikTok Distribution Deals—Impala Claims Foul Play

A few weeks ago, we reported that TikTok’s licensing negotiations with Merlin had fallen apart. Since then, new details have emerged, and things are looking messy. TikTok, concerned about copyright issues, backed out of collective negotiations with Merlin, leaving rights-holders in a tricky spot. Instead of dealing with Merlin as a collective, rights-holders now have to negotiate directly with TikTok.

And here’s where things get dicey. Without Merlin’s collective bargaining power, TikTok seems to be offering far less favorable terms. Reports are surfacing that these individual deals vary from one rights-holder to another, with no consistent terms across the board. Worse still, the royalty rate being offered is reportedly less than half of what Merlin had previously negotiated.

TikTok’s approach has been described as “take it or leave it,” leaving smaller labels with little room to negotiate. While this may save TikTok money, it also means hundreds of smaller deals for them to manage—a surprising move that could create more administrative headaches down the road.

Impala, the association representing independent labels, has voiced its concerns, stating that TikTok’s move to pay less for music could lead to many smaller labels being excluded from the platform altogether. It’s a troubling development for the music industry, and we hope this tactic doesn’t spread to other DSPs or tech platforms. Keep your eyes on this space—TikTok’s strategy could have ripple effects that shape the future of digital music licensing.

Luminate Launches New Index Ranking Artists by Cultural Impact

Luminate is making news with the announcement of their new Luminate Index, a ranking that evaluates artists not just on their music sales but on their overall cultural impact. This new index takes into account not just commercial performance but also social media activity and consumer surveys to assess an artist's influence on a global scale.

And, of course, it’s no surprise that Taylor Swift currently holds a perfect 100/100 score, dominating the charts and beyond. But what’s truly fascinating about the Luminate Index is that it includes a separate ranking focused entirely on Gen Z attitudes, reflecting how the music industry’s role is evolving.

The launch of this index showcases a significant shift in the role of musicians today. It’s no longer just about the music—artists now engage with their audiences across multiple platforms, from social media to brand collaborations. Musicians have become influencers, brand ambassadors, and trendsetters, and the Luminate Index is a direct reflection of that reality.

As social media continues to play a key role in shaping careers, the definition of what it means to be a successful artist is evolving. Fans want more than just music—they want to connect with artists in multiple facets of life. This new ranking will give us insight into how musicians are adapting to these changes and the impact they’re making across various areas of popular culture.

That's it for this week's newsletter! Be sure to check back for updates on Musi's lawsuit, the evolving landscape of TikTok’s licensing strategy, and the latest cultural influencers reshaping the music industry.