Details about the negotiations remain speculative, but an ad revenue share model aligns all parties’ incentives: when the platform earns revenue, the music industry earns revenue. Yet this upside was not always so obvious to the labels, whose initial “value gap” argument was based around YouTube’s ad revenue share model. Now — if the reports are true — the labels’ new value gap argument focuses on getting TikTok to adopt exactly what was the basis of the first value gap.
