TikTok has become increasingly popular across the globe in recent years. We’re pleased to offer our clients the opportunity to distribute music to this platform. TikTok’s unprecedented growth over the past few years has led to it becoming a very popular platform. Providing a great opportunity for many artists to reach your audience. The big question a lot of our clients are asking is – ‘How are TikTok royalties calculated?’.
How are TikTok royalties calculated?
In comparison to other major platforms such as Spotify (who pay per total number of streams), TikTok operates differently when calculating royalties. They base calculations on the number of videos made using your music. Rather than the number of times the video is watched. This can often become confusing if you are measuring the way royalties are worked out against other stores. So it’s important to understand the main difference here is that big watch numbers don’t equal large royalty payments.
Royalties for TikTok are based on market shares rather than metric views. To calculate the market shares, TikTok use what is called a creation. A creation is when a user selects a release from TikTok’s library to make a video. Users can then make their own creations inspired by existing creations, all amounting to new creations. So, to put this simply, every time a user decides to use your music to make a video, this generates royalties.
Conclusion…
With this in mind, when you see your view numbers racking up it’s important to remember what’s generating your royalties is other users selecting your music for their video, not the 200,000 views you may have. When we think back to those Tik Tok classics such as Megan Thee Stallion’s ‘Savage’, the millions of users creating dance videos to the track is a great example of how royalties are generated through a creation.
If you have any questions related to your royalties, contact us today!
