TikTok plans shift to per-play Music pay-outs, according to industry sources

Under TikTok’s existing model, rights holders are typically paid only once for the initial use of a song in a video, regardless of how many times that video is viewed. This structure has drawn sustained criticism from artists, labels and distributors, particularly when compared with streaming platforms such as Spotify and Amazon Music, where royalties are calculated on a per-stream basis.

Distributors including DistroKid and CD Baby have previously warned artists that a TikTok video receiving millions or even billions of views would not generate additional royalties beyond the original sync payment, unless the music was reused in a new video format such as a challenge, duet or stitch.

According to sources cited by DMN, TikTok intends to change this approach by counting multiple plays of the same video as royalty-generating events. Under the proposed system, a video that reaches one billion views would generate royalties based on those one billion plays, rather than a single payment.

The change would also apply to derivative content, such as challenges and remixes, which could independently generate royalties based on their total views. Industry sources said the revised model could significantly increase pay-outs for songs that perform strongly on the platform.

The transition is not expected to be immediate. Sources indicated that implementation is likely during the northern hemisphere summer, with one source suggesting a possible rollout in late July 2026. TikTok has declined to comment publicly on the reported changes.

One rights holder expressed frustration with the current system, telling DMN that “the system is a total mess with lots of people complaining”, adding that the proposed revision appeared to be “an attempt to push things into a new sphere”.

The reported changes would not affect rights holders that already operate under separate commercial agreements with TikTok. Major music companies including Universal Music Group (UMG), Warner Music Group and Sony Music Entertainment have negotiated more favourable compensation terms.

UMG previously removed its catalogue from TikTok in a dispute over royalty payments, before later reaching a revised agreement. Sources familiar with the deal said UMG now receives a substantial upfront payment for use of its catalogue. Other companies, including UnitedMasters, have also secured improved terms, although independent label collective Merlin was reportedly excluded from similar arrangements.

Music publishers have also taken a different approach to monetisation on TikTok. Industry sources told DMN that several major publishers receive large, recoupable upfront advances from the platform, reducing the immediate impact of per-play royalty calculations. However, TikTok is reportedly considering moving away from advance-based structures as part of its broader review.

It remains unclear whether the revised pay-out model will apply globally or be limited to specific territories. Questions also remain about how the proposed changes intersect with the US-based TikTok US Data Security joint venture.

If implemented as described, the shift would mark a significant change in how music is monetised on one of the world’s largest user-generated content platforms, potentially improving earnings for artists and rights holders whose music gains traction on the app.