logo

M.A.D Solutions Inks Direct Agreement with TikTok as TikTok Sidelines Merlin

Indie juggernauts like UnitedMasters and Ditto have since inked direct agreements with TikTok, and M.A.D Solutions is the latest Merlin member to follow suit.

19 November 2024By Tochi Louis
Thumbnail

M.A.D Solutions, long licensed through global rights agency Merlin, recently broke new ground by inking a direct licensing deal with TikTok. This move signals a larger shakeup in the music business, as TikTok has opted to scrap its blanket re-licensing arrangement with Merlin, citing "operational challenges." At the heart of this decision lies a contentious issue: copyright quality control.


TikTok claimed that past operational hurdles with Merlin included instances where “music that is not quality controlled for copyright is delivered.” Instead of continuing its blanket agreement [through Merlin], TikTok has chosen to negotiate directly with individual Merlin members reshaping how independent music rights are licensed on the platform. Indie juggernauts like UnitedMasters and Ditto have already inked direct agreements with TikTok, and M.A.D Solutions is the latest Merlin member to follow suit.


Merlin, however, views TikTok’s decision through a different lens. In a letter to its members last week, Merlin described TikTok’s move as an attempt to “[fragment] the Merlin membership, in order, we believe, to minimize their payout.” This sentiment underscores the growing tension between the two entities, with Merlin standing firm on the belief that its collective approach benefits artists and rightsholders more equitably. TikTok, for its part, has cited "streaming fraud concerns" as a key reason for walking away from blanket negotiations. 


The agreement between TikTok and M.A.D Solutions extends across TikTok, CapCut, and the TikTok Commercial Music Library (CML). By bypassing a collective deal, M.A.D Solutions is strategically positioned to fully leverage TikTok’s expansive ecosystem. This move ensures that the company’s artists gain exclusive access to the CML, a resource used by millions of global brands, including Coca-Cola, IKEA, and ESPN. The CML unlocks significant monetization opportunities through branded content, advertisements, challenges, and viral trends.


​​“This partnership with TikTok aligns perfectly with our mission to bridge the gap between African talent and global markets,” said Bugwu Aneto-Okeke, Founder and CEO of M.A.D Solutions.


“TikTok has revolutionized music discovery, becoming a vital platform for exposure and revenue generation. Our partnership ensures that artistes under our banner are strategically positioned to benefit from its immense potential. This collaboration is not just about visibility—it’s about creating new financial opportunities for our artistes,” added Bugwu Aneto-Okeke. “We are committed to optimising artiste revenue while amplifying African culture across the globe.”


Founded in Nigeria in 2017 and now headquartered in Houston, Texas, M.A.D Solutions has established itself as a leader in African digital music distribution. With operations spanning South Africa, Canada, the UK, and beyond, the company has successfully connected thousands of artists such as Flavour, Simi, P-Square, Runtown, and Phyno to major platforms like Apple Music, Spotify, Boomplay, and Amazon Music.


The numbers speak to M.A.D Solutions’ track record:

  • 16.5 billion views generated by their TikTok catalogue in the past year
  • 29.99 million creations inspired by their music
  • 1.23 billion likes, 41.07 million shares, and 8.98 million favorites


Their recent success with Phyno’s album Full Time Job is further proof. Distributed by M.A.D Solutions, the album garnered over 40 million Spotify streams within a month of its release. On YouTube, the company’s catalogue has amassed over 1.1 billion streams in 2024 alone.


In 2021, M.A.D Solutions launched ENGAGE, a talent management agency and label service dedicated to nurturing independent artists and facilitating cross-border collaborations. With the success of ENGAGE and the new TikTok partnership, M.A.D Solutions is doubling down on building sustainable infrastructure to ensure the long-term success of independent African talent.




In June, Merlin secured the renewal of its 'strategic partnership' with Meta, the parent company of Facebook, on behalf of its members including M.A.D Solutions. The deal covers Meta’s properties, including Instagram, Facebook, and Messenger.

envelope

Every info you need to keep ahead in Africa’s creator economy.