TikTok’s strategic actions on the African continent are multiplying. The social network has signed a partnership agreement with the institutions in charge of collecting royalties. An agreement that concerns 22 African countries allowing TikTok to attract artists on its platform and the African music industry to have new revenues.
Huge revenue potential
TikTok recently entered into a licensing agreement with the Southern African Music Rights Organisation and the Composers Authors and Publishers Association.
This is a multi-year agreement covering 58 territories and providing for the payment of royalties to South African songwriters, composers and music publishers.
This means that every time their music is used on the social video sharing network, they will receive the royalties.
The revenue potential is huge as TikTok has an audience of about 6 million people in South Africa.
Following the agreement, African record companies dream of replicating the success of Jerusalem, a global hit that has gone viral on the social network and has been used in videos on TikTok more than a billion times.
Note that royalties on TikTok are calculated on a pro-rata share of the available pool. In other words, they are determined by a person’s market share and usage in each period. The agreement does not provide for a fixed rate per broadcast.
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