Twitter, Music Licensing Talks Stall

Twitter explored the licensing of music rights from three major labels before negotiations stalled after Elon Musk’s takeover of the company, reports The NY Times citing eight people with knowledge of the discussions.

Twitter is one of the last big social media platforms without music licensing deals, which allow the sites to host virtually all commercially available audio content without fear of takedowns or legal reprisal. Facebook, Instagram and TikTok have all made agreements for music rights.

Twitter had avoided signing deals for music rights, which require social media companies to compensate rights holders when users post or play content with song. The costs of the licenses can vary, but can be well over $100 million a year for established social-media platforms. Twitter has forgone the licensing deals because of the costs, five former employees said.

Source: DataReportal

Twitter began negotiations with the three major music conglomerates — Universal, Sony and Warner — in the fall of 2021, according to six people close to the talks. When Mr. Musk announced his intent to buy the company last April, some music industry leaders saw his involvement as an opportunity to finally get the deals done.

However, The internal chaos at Twitter after Musk’s takeover disrupted the negotiations, six people said. The company eliminated some of the people responsible for the music rights talks in several rounds of layoffs, leaving the labels with few remaining Twitter contacts, said four people at the major music companies who were briefed on the discussions.