The Music Business
Reels, Short Videos and Hit Songs
How Instagram Reels, YouTube Shorts and TikTok turned short clips of songs into hits, how labels license music to platforms, and how songs are now written for virality.
Short videos now drive music discovery.
How it works
- Users add song clips to Reels, Shorts and similar videos.
- A catchy hook can go viral, pushing streams of the full song.
TikTok and India
TikTok was banned in India in June 2020; Instagram Reels and YouTube Shorts filled the gap.
Licensing
- Platforms sign licensing deals with labels and publishers.
- Disputes occur; in 2024, Universal Music temporarily pulled its music from TikTok over payment terms.
Changing songwriting
- Songs designed with short, catchy hooks early.
- Remixes and sped-up versions of old songs trend.
- Old songs get revived through trends.
Economic effects
- Promotion for songs.
- But short clips themselves generate small royalties.
- Popularity can be fleeting.
Labels’ strategy
Labels invest in influencer campaigns to launch songs.
The revived classic
An old Bollywood song goes viral as a Reels trend. Its streams jump, earning its label new royalties decades later.
Thinking viral clips pay artists well directly
Clips promote songs; the money mostly comes from full streams.
Key takeaways
- Short videos drive music discovery.
- Reels and Shorts filled the gap after TikTok's 2020 ban in India.
- Platforms license music from labels.
- Songs are increasingly written for viral hooks.
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