IMPALA Stands With UMG On TikTok 'Value Gap' And Highlights 'Stupid Consequences' With Stream Changes

The Independent Music Labels Association (IMPALA) has released a statement detailing its position on TikTok and proposed changes to payment models for streaming music and how this will affect its members. Founded in 2000, the advocacy group has 6,000 members drawn from Europe's small music businesses.

As for TikTok, the agency says it is aligned with Universal Music Group and its decision to let its license with TikTok expire due to low compensation and concerns about artificial intelligence. “IMPALA supports UMG's stance on TikTok regarding the proper appreciation of music,” says the president of the organization's streaming group and CEO of Everlasting Records and Popstock Distribuciones, Mark Kitcat. “The independent community has taken a similar approach at various points over the years with other services, from MTV to Apple to YouTube. We also reject arguments that equate the use of music on TikTok with promotion.”

IMPALA's stance on TikTok's lack of policing of AI-generated content is also similar to what UMG addressed in its letter to artists and writers when it announced its plan to leave the platform. “Services need permission to use music, including audio and artificial intelligence adaptations. The new AI framework in Europe is also helping to set human-centric drivers in this regard,” he says Helen Smithexecutive director of IMPALA.

IMPALA also notes that it is concerned about how some streaming services – including Spotify, Deezer and Apple – are changing their payment models to artists and labels. “Adjustments can be made [by Deezer, Spotify and Apple] to avoid harm,” the organization says. IMPALA is asking for a better seat at the table for smaller music companies. “Any changes in the way revenue is distributed [should] be properly assessed by the services in terms of the impact they create across the market… We also call on the streaming services to consult and discuss this with their independent licensing partners before a decision is made.”

Critics of Deezer and Spotify's new royalty payment models say adding a cap on a minimum number of streams an artist must reach before they qualify for payment is unfair to smaller artists and the companies that represent them. Also, streaming companies are already considering or adding penalties for music companies that facilitate music involved in stream manipulation and fraud. For distributors serving a large scale of DIY talent, this could have a huge impact on their businesses,

To overcome these problems, a number of distributors have come together to form the Music Fights Fraud coalition, including TuneCore, Distrokid and CD Baby, to find best practices to combat bad actors signing up on their platforms and create a common database to share information about the scammers each service catches. IMPALA says it supports Music Fights Fraud and that tackling fraud is a “priority” for the organization and its members.

President of IMPALA and Head of the Balkan Association RUNDA, Dario Drastat, adds: “IMPALA supports collective reform that is sustainable and leads to diversity. We are looking for urgent solutions to address manipulation and revenue decline. We also need to ensure that proposals are fair for everyone and we hope that Merlin's recent deal with Deezer will contribute to this goal. It is the only way to create a sustainable ecosystem. We believe, for example, that there are simple solutions to problems with linkable thresholds, and we will continue our constructive discussions with the services to explore options. Finding the answers will ensure that services are able to develop further opportunities in key markets and genres, as well as in multiple languages.”

Helen Smith says, “IMPALA's work is vital to Europe's music economy. Independents account for over 80% of new releases and jobs in the industries, providing stable and exciting opportunities for artists, fans and music workers across Europe. This was also confirmed at the IMPALA AGM last year, including the elimination of value differences and the development of the digital market in all regions with great talent, huge audiences and untapped digital potential, such as in Central and Eastern Europe. “