How TikTok calculates payments shifts as Indie takedown fears fizzle

How TikTok calculates payments is changing as most indie labels and distributors appear to have avoided forecast takedowns.

How TikTok calculates payments shifts as Indie takedown fears fizzle

October 31st was the deadline for independents to bypass their trade group Merlin and sign direct deals with TikTok.

While only United Masters and Ditto have admitted to direct deals publically, many more appear to have signed privately.

TikTok claimed to Billboard that the majority of Merlin members have signed direct deals and no removals have been reported.

“If I still thought that not signing would help Merlin get a new deal, or could help the independent music community, I would try not to sign,” said one exec speaking anonymously. “But even when Universal didn’t sign, [TikTok] didn’t care. We have no choice because our artists want to be on TikTok—perhaps too much—but for them, this is very important.”

Big Change in How TikTok payments are calculated

The new direct deals reportedly net similar payments, but now pay for based on views on videos featuring a song, rather than how many videos are created using the song.

It’s a change long sought by most music creators.

Bruce Houghton is the Founder and Editor of Hypebot, a Senior Advisor at Bandsintown, President of the Skyline Artists Agency, and a Berklee College Of Music professor.