TikTok reportedly revising music royalty model to include per-play payments

Under TikTok’s existing system, rights holders are typically paid only for the initial use of a track in a video, regardless of how many times that video is viewed. This contrasts with streaming services such as Spotify and Amazon Music, where royalties are generally calculated on a per-stream basis.

Distribution platforms including DistroKid and CD Baby have previously highlighted that, under TikTok’s current structure, a video containing a song that generates millions or even billions of views would trigger a single payment for that initial use. Additional payments are made only when new videos are created using the track, such as through challenges, duets or stitches, each of which is treated as a separate event.

According to details cited by DMN, TikTok now intends to shift towards a model that factors in multiple plays of the same video. If implemented as described, royalties would be calculated based on total video views, meaning a viral clip viewed one billion times would generate payments reflecting those cumulative plays rather than a single usage event.

Sources familiar with the matter indicated that the transition is expected to take place during the summer of 2026, with one source suggesting a possible changeover in late July.

The reported overhaul comes amid longstanding criticism of royalty rates on user-generated content platforms. One intellectual property owner described the current system to DMN as “a total mess with lots of people complaining”, adding that the revision represents “an attempt to push things into a new sphere”.

It remains unclear whether the new structure will apply globally or only in selected markets.

The changes are not expected to affect rights holders that have already negotiated separate licensing agreements with TikTok. Major record companies, including Universal Music Group (UMG), Warner Music Group and Sony Music Entertainment, have secured revised compensation arrangements in recent years.

Earlier disputes over royalty rates led UMG to remove its catalogue from TikTok before reaching a new agreement with the platform. Other companies, including UnitedMasters, also renegotiated terms following those developments, while independent label collective Merlin was reported to have faced more difficult negotiations.

Music publishers are also understood to have received substantial upfront, recoupable advances under existing agreements, potentially limiting the immediate impact of a shift from per-creation to per-play payments for some stakeholders.

Separately, it is not known whether the reported changes are linked to TikTok’s USDS joint venture in the United States, or whether that entity has influenced the proposed revisions.

If confirmed, the move would mark a significant change in how royalties are generated on one of the world’s largest short-form video platforms, with potential implications for artists, labels and publishers seeking to monetise music used in viral content.