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Every month, TikTok welcomes over 100 million new users, most of whom spend hours watching videos with all those different sounds on the app. In addition, studies show that 88% of users consider audio an essential component of the TikTok experience.
Even though musicians appreciate any promotion they get from a website or platform, money is also crucial. Nowadays, it seems like streaming royalties—or the lack of them—are the topic of every other conversation in the entertainment industry. What about TikTok royalties, though?
Are artists paid, and if they are, how? Here, we’ll address a few questions about how TikTok royalties a being calculated that will enable you to take full advantage of this fantastic tool.
TikTok has started paying royalties to artists, joining the likes of Spotify, Apple Music, Tidal, and many others.
In order to pay artists for TikTok streams, the majority of labels and distributors recently consented to license agreements with the app. Even though the payments are modest, they represent an extra benefit for an app that has already established itself as the most successful tool for marketing to young people globally.
This is most likely the most frequently asked question about this subject. Unfortunately, the answer is “no!” The snippet of your song that will be used as a sound on TikTok must be sent to the app by your distributor to receive TikTok royalties. There is no other way.
TikTok’s revenue is used to pay the royalties. Your distributor will gather and pay you your royalties on your behalf. With TikTok, each distributor and label has a separate agreement that specifies how much revenue their artists will be given.
For instance, Tunecore has made it clear to its users that they are paid royalties for the use of their music on TikTok based on how many videos are created using an artist’s music, not how many times the video is viewed. In short, you get paid per video, not per stream. TikTok operates differently when calculating TikTok royalties then other significant music streaming platforms like Spotify, which pay per total number of streams. The main difference here is that high view counts don’t necessarily translate into high royalty payments, which can become confusing if you compare how TikTok royalties are calculated with other services.
As an illustration, hundreds of videos with no views that feature a particular sound will make more money than a single video with a million views. The number of streams is irrelevant.
Again, since each distributor has different agreements, these may differ between them. However, this is the most common way of calculating royalties.
The precise sum varies depending on the distributor. Additionally, it will vary from month to month. The earnings are significantly less than what you would get from a Spotify stream, though, as only a small portion of your song is featured in the videos.
Therefore, according to the most recent data available, TikTok pays three cents for each new video in which your song is played. It would take 1,000 videos featuring your music for you to make $30. According to these numbers, 1,000,000 uses of your track would bring in about $30,000.
That is undoubtedly a large number of creators using your work, but for the most popular TikTok songs, the numbers are still impressive enough to encourage musicians to compose music that enhances the work of the platform’s creators and increases engagement rates.
TikTok reports revenue to distributors on a quarterly basis, so you can anticipate receiving royalty reports and payments following each quarter’s processing by your distributor. Naturally, this means that you will need to wait a few months to see how those TikTok streams are converting into royalties.
You stand to gain a lot from TikTok’s powerful promotional capabilities. TikTok is one of the few apps that enables users to share their videos across all social media platforms. This includes SMS, Facebook, Whatsapp, Viber, Discord, Instagram, Twitter, Telegram, Snapchat, Email, and more. It can serve as an additional marketing tool to aid in increasing the number of people who hear your music. It is obvious how this has affected Spotify streams and fan growth.
The most successful TikToks have resulted in chart-topping singles, overnight fame, and some fantastic record deals. This is because anyone can accumulate millions of TikTok streams. After all, videos have a much higher chance of becoming popular than Spotify songs. For the time being, the royalties should be considered a bonus.
Keep in mind that before these licensing agreements were established, musicians and major labels had been concentrating on TikTok promotion for many years. Because there is currently no better way to market to young people, labels continue to pour enormous amounts of money into TikTok promotion.
Remember that these initial agreements with TikTok are just the beginning and could grow over time as distributors renegotiate and TikTok’s subscription revenue increases.
One of the best ways for artists to promote their music and get new fans is by sharing it on the TikTok app. Additionally, you get paid each time your song is used in TikTok videos. On this page, you can use our TikTok royalties calculator and sum your estimated income for free. So, there is no reason not to expand your presence in every possible way.
I’m sure you’ve heard of some songs that went viral due to their popularity on the platform. Those songs often have lyrics that stick in your head or are relatable and quotable. Music-wise, viral TikTok songs often have a danceable beat and a satisfying bass drop. If you want to know more about how to make your song go viral on TikTok, check out this article!
Eventually, remember that SoundCampaign can help you with the promotion of your music! We assist musicians worldwide by placing their music on curators’ playlists while enabling curators to earn exciting rewards as they discover new music.