TikTok has emerged as a pivotal platform for music discovery in the ever-evolving landscape of music and social media. The Music Impact Report, a collaborative effort between TikTok and Luminate, sheds light on this phenomenon.
Analyzing data from various countries, including the US, UK, Germany, Brazil, and Indonesia, the report covers the period from July 1, 2022, to June 30, 2023. It aims to unravel how TikTok and its users influence music discovery, consumption, and overall revenue generation in the music industry.
TikTok’s Influence on Music Discovery and Streaming
The report unveils that TikTok users globally are significantly more engaged in discovering and sharing new music on social or short-form video platforms than the average user. This trend is particularly pronounced in the United States. TikTok users are twice as likely to discover music on these platforms as the average social media or short-form video user.
Ole Obermann, a representative from TikTok, articulates this impact, stating, “TikTok is already famous for being the launchpad for creating viral hits and breaking new artists, but we wanted to understand how TikTok and its users impact the music industry more broadly. Luminate’s findings prove what we had long known: that TikTok is the driving force behind music discovery in the industry, and that TikTok users are active, engaged and highly valuable drivers of music industry revenues.”
TikTok’s Economic Impact on the Music Industry
The economic influence of TikTok extends beyond the digital realm. The report highlights that TikTok users globally spend more money on music-related categories compared to the average music listener. For instance, TikTok users spend 49% more on music purchases in the UK than average listeners.
In the US, the engagement is also tangible in live events and merchandise purchases, with 38% of TikTok users attending live music events and 45% purchasing artist merchandise, surpassing the percentages of overall music listeners.
Connecting Global Music Communities
A unique aspect of TikTok’s impact is its role in connecting local artists with global audiences. The platform’s audience exhibits a distinct preference for international music, far exceeding that of average listeners in all markets analyzed.
In the UK, TikTok users are 77% more likely to seek access to global music artists. Similarly, in the US, nearly half of the TikTok audience listens to music in languages other than English, a rate 27% higher than the general music listeners.
Nick Lanzafame, VP and Head of Research at Luminate, reflects on this global connectivity, saying, “Luminate was happy to collaborate with TikTok on this report, as it demonstrates the value of data and research in today’s entertainment ecosystem.
After analyzing the data, our team was able to help TikTok tell a data-driven, objective story, showcasing their impact as a source for music discovery and demonstrating how TikTok users are uniquely valuable to the music industry.”
The Music Impact Report by TikTok and Luminate underscores TikTok’s significant role in shaping music discovery, influencing consumption patterns, and contributing to the broader music industry’s revenue streams.
This report cements TikTok’s position as a key player in the global music ecosystem, bridging local artists and international audiences and transforming how music is discovered and enjoyed worldwide.