The Value of Silence: Demand for Music Tracks in the Aftermath of the UMG vs. TikTok Licensing Dispute – MSI

Working Paper

The Value of Silence: Demand for Music Tracks in the Aftermath of the UMG vs. TikTok Licensing Dispute

Mengjie (Magie) Cheng, Elie Ofek and Hema Yoganarasimhan

Jul 9, 2024

Download

Uses a difference-in-difference analysis to examine the effect on sales resulting from the dispute about compensation that led in 2024 to the temporary exclusion of Universal Music Group (UMG) music from TikTok.

Topics

advertising Competition & Markets Social Media & Social Influencers

research recap

Do Social Media Platforms Help or Hurt Music Sales? (The Answer is Yes)

While some music companies claim that social media platforms cannibalize their sales, platforms argue that they provide promotional and discovery benefits for musicians. Analysis of the dispute between Universal Media Group and TikTok finds support for both arguments: social media can boost aspiring—but may hurt—established artists.

By using MSI.org you agree to our use of cookies as identifiers and for other features of the site as described in our Privacy Policy.