TikTok Increases Superfan Payouts in the U.S. and Canada, ‘Bringing the Maximum Profit-Sharing to 90%’

Photo Credit: BoliviaInteligente

TikTok has upped its subscription payouts in the U.S. and Canada, where it says creators will receive a “maximum profit-sharing” rate of 90% under a new bonus program. The short-form mainstay disclosed as much in a recent update about its superfan and subscription monetization options. Outside the U.S. and Canada, the platform has since October 1st been forwarding half its net subscription revenue – less App Store and Play Store fees – to creators, per the resource.

Monetized international accounts with at least 10,000 followers and one million monthly video views will “also be eligible for a 20% bonus,” thereby upping the share percentage to 70%, according to TikTok.

(The document seemingly uses “profit-sharing” and “revenue share” interchangeably. And technically, the same page doesn’t directly name the U.S., referring instead to “North America & Canada.”)

On the other hand, the service is offering “70% of the revenue share” to U.S.- and Canada-based creators off the bat.As described by the relevant text – which, unlike the international counterpart, makes no mention of follower or view minimums – a 20% bonus will elevate the share to the initially noted 90%.

“Keep an eye on your in-app notifications for details on when you can unlock this exciting new bonus opportunity,” TikTok wrote, opting against disclosing how long said opportunity might remain available.

Of course, TikTok didn’t dive into its precise strategy in adopting a larger profit-share percentage in North America. But it’s not a secret that the app is preparing to roll out a stateside version as part of an overhauled ownership structure.

Also not a secret is the Chinese government’s resistance to the long-in-the-making sale. Could the 90% rate be a parting gift for TikTok’s U.S. owners, who will presumably be hesitant to ruffle creators’ feathers by lowering the percentage at once?

At a minimum, the announcement’s timing is curious – though as highlighted by MediaPost, the 10% fee aligns with the charges in place at subscription-geared sites like Substack and Patreon.

To state the obvious, however, there are key differences between the latter two platforms and TikTok – especially when it comes to the music world.

Even as its stateside fate was hanging in the balance, TikTok promoted a number of releases, popularized (and re-popularized) a variety of tracks, and apparently connected at least one festival with a larger audience.

And given that superfan monetization is a bigger focus than ever – OpenWav set sail in June, and YouTube Music last month expanded its fan-engagement features – time will tell how (and whether) artists capitalize on TikTok’s subscriptions.