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TikTok fires again at suggestion it’s hurting paid-for music streaming progress in France: ‘There is no such thing as a proof to counsel that TikTok is diverting music followers away from subscription streaming providers.’ – Music Enterprise Worldwide Acquire US

TikTok has refuted solutions by France’s recorded music physique SNEP that short-form video providers ‘divert’ music followers from subscription streaming providers.

Final week, SNEP, the recorded music business physique in France, reported its H1 income numbers for the world’s sixth-largest recorded music market.

SNEP, which reported that France generated recorded music revenues of €397 million within the first half of 2023, with the market rising 9.4% YoY, urged in its report that short-form video platforms “stop the … subscription mannequin from growing”.

Inside its H1 report, SNEP famous that with earnings of €232 million, subscription streaming was the market’s greatest income generator in H1 2023, accounting for 59% of complete revenues  (versus 58% in H1 2022 and 56% in H1 2021).

SNEP additional opined, nevertheless, that subscription streaming’s 10% YoY progress within the French market “stays too sluggish… in comparison with the huge adoption of [subscription streaming] in different main historic markets for recorded music”.

SNEP then turned its consideration to ad-supported platforms – particularly short-form video providers like TikTok.

As you possibly can see within the chart under, promoting cash from ‘free’ streaming and video platforms mixed accounted for 18% of complete recorded music revenues in France in H1 2023 (with 9% generated by ad-funded video platforms and 9% generated by ad-funded audio platforms).

In a press release issued final week, SNEP Common Supervisor Alexandre Lasch claimed that “the market share of those advertising-based segments mannequin demonstrates the issue of growing a strong subscription market and hampers worth creation” in France.



Later in its report, SNEP acknowledged [translated] that “the French market is characterised by the… larger [market] weight than elsewhere of ad-supported streaming providers, whether or not audio or video”.

It added: “These are the segments that make the smallest contribution to artists’ and producers’ remuneration, whereas capturing – particularly for video providers like TikTok – a most variety of customers and music listening time.”

“[Short-form video services] stop the virtuous subscription mannequin from growing, by diverting, from [subscription services] a public that’s strongly dedicated to music, however which finally settles for excerpts lasting a couple of seconds with out discovering and listening to the tracks of their entirety through paid streaming providers.”

SNEP H1 2023 report

SNEP cited an IFPI Music Client Examine from 2022 that confirmed “music is on the coronary heart of 64% of movies consumed” through short-form video functions.

The commerce physique added that, as short-form providers like TikTok unfold “quickly the world over” lots of their attraction is predicated “on the music that floods the content material they broadcast”.

In line with SNEP, short-form video providers like TikTok “thus stop the virtuous subscription mannequin from growing, by diverting from [subscription services] a public that’s strongly dedicated to music, however which finally settles for excerpts lasting a couple of seconds with out discovering and listening to the tracks of their entirety through paid streaming providers.”


Responding to the suggestion that short-form streaming providers, together with TikTok, divert customers from paid-for streaming within the French market, Ole Obermann, TikTok’s World Head of Music Enterprise Growth has categorically denied that that is the case.

In a press release issued to MBW, Obermann stated: “There is no such thing as a proof to counsel that TikTok is diverting music followers away from subscription streaming providers.”

Ole Obermann, ByteDance
Credit score: ByteDance

“Removed from being a menace to streaming subscription uptake, TikTok is an important a part of the music ecosystem, the place discovery on TikTok results in larger consumption and worth technology, each on- and off-platform.”

Ole Obermann, TikTok

Obermann added: “Quite the opposite, TikTok is the world’s main platform for music discovery and promotion, the place each day thousands and thousands of individuals uncover each new and catalogue tracks, which they then take pleasure in as full size tracks on DSPs – as clearly evidenced by the correlation between a monitor’s early success on TikTok and its subsequent success on streaming providers.

“Removed from being a menace to streaming subscription uptake, TikTok is an important a part of the music ecosystem, the place discovery on TikTok results in larger consumption and worth technology, each on- and off-platform.

“And, with the purpose of creating the consumer journey from discovery on TikTok to full-track streaming even simpler, we’re at the moment trialling a product which is able to assist customers stream music found on TikTok immediately on their most well-liked DSP.”

France’s total recorded music progress outpaced that of some notable international locations on IFPI’s listing of the world’s greatest recorded music markets.

In Germany, for instance, the world’s fourth-largest recorded music market, recorded music revenues grew 6.6% YoY within the first half of 2023.

The US recorded music business, in the meantime, which generated USD $15.9 billion in 2022, grew 6.1% YoY in FY 2022 (H1 2023 outcomes for the market aren’t out there simply but).

Within the US, paid subscription providers together with the likes of Spotify Premium and Apple Music grew 8% YoY to $10.2 billion in 2022.


Obermann was additionally eager to focus on latest examples of artists who noticed streaming success alongside reaching virality on TikTok.

“I additionally need to spotlight the massive worldwide success of Jain with Makeba – an unimaginable instance of music discovery (and rediscovery) on TikTok which led to worldwide streaming success,” stated Obermann.

“Makeba (which was initially launched in 2015) has grow to be a large international hit on TikTok this yr, the place it was utilized in over 13m creations, and was TikTok’s No.1 Tune of the Summer season within the US.

“Jain’s success on TikTok drove a whole lot of thousands and thousands of streams throughout the DSPs, making her the No.1 French feminine artist on Spotify with 14.8m month-to-month listeners, and taking her to #1 on each the World Viral Spotify Chart and the World Shazam chart. 


This isn’t the primary time that SNEP has urged TikTok is the explanation behind France’s “struggling” subscription progress, and never the primary time that TIkTok has denied the declare.

In March, SNEP revealed its annual recorded music income outcomes, wherein it reported that the market generated recorded music revenues of €920 million (USD $967m) in 2022.

SNEP’s MD, Alexandre Lasch urged in a press release on the time that TikTok’s “huge use diverts customers from subscription-based providers, the drivers of as we speak’s music enterprise mannequin”.

SNEP additionally famous in its report that TikTok and short-form movies “have re-shuffled the deck in relation to music streaming”.

SNEP reported that paid subscription-based streaming, which generated revenues of €426 million ($448m) in 2022, was France’s foremost driver of recorded music income final yr, rising 11% YoY.

SNEP additionally reported that there have been 11 million paying subscription accounts in France, up by +1.0 million YoY from 10 million in 2021. (These accounts have been shared by 16 million customers, through household plans and so forth.)

This YoY progress within the variety of subscription accounts in France really slowed in comparison with 2021, when the variety of paid subscription accounts grew by +1.3 million vs. 2020.

Music Enterprise Worldwide

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