- \n
- To join TikTok\u2019s Pulse program, creators must agree to grant TikTok the ability to sub-license their content without receiving royalties.<\/li>\n
- The terms are likely a defensive move by TikTok to protect itself against potential legal claims.<\/li>\n
- Some creators are opting against joining the revenue-sharing program because of TikTok\u2019s terms.<\/li>\n<\/ul>\n
TikTok has been inviting more creators to join its revenue-sharing program Pulse<\/a> in recent months, but some creators who have received invites are questioning whether agreeing to the program\u2019s terms is worth the money they may receive. Two of the creators Digiday spoke to said they have decided not to accept the invites because of TikTok\u2019s terms.<\/p>\n
To participate in TikTok\u2019s revenue-sharing program, creators must agree to grant TikTok the \u201cirrevocable\u201d ability to sub-license creators\u2019 content and any pre-existing materials contained in the videos \u2014 including \u201cnotes, records, drawings, designs, products, services\u2026 original works of authorship\u201d \u2014 without paying royalties to creators, according to copies of the \u201cTikTok Pulse Program \u2013 Creative Partner Terms\u201d and \u201cTikTok Creator Marketplace Terms of Service for the U.S.\u201d that were reviewed by Digiday (screenshots below).\u00a0<\/p>\n
\u201cI read that, and some alarms went off,\u201d said one creator who was invited to join the Pulse program but has decided to refrain until the terms change.<\/p>\n
So what\u2019s the big deal with this legalese? Well, it basically means that \u2014 while participating creators retain ownership rights to their content \u2014 TikTok can take participating Pulse creators\u2019 videos and strike licensing deals, such as selling them for use in TV shows or ads, and not have to pay a cut to creators.<\/p>\n
\u201cThis is the broadest license you can get,\u201d said John Neclerio, chair of law firm Duane Morris\u2019s technology, transactions, licensing and commercial contracts group.<\/p>\n
In an emailed statement, a TikTok spokesperson said, \u201cIn regards to TikTok Pulse, we have no plans or intentions to sublicense creators content. In our\u00a0TikTok Creator Marketplace terms<\/a>, which creators need to accept as Pulse payments are run through TTCM, there is language that mentions content will only be licensed on an as-needed-basis to parties other than Tiktok, such as advertisers, in connection with campaigns. If you review the terms, you will find these are limited licensing terms and not a license to use their content broadly. Creators still retain ownership of their defined TTCM \u2018Content.’\u201d<\/p>\n
To be clear, the language seems to be primarily a defensive measure by TikTok to protect itself against potential legal claims. While the terms do give TikTok the option to sublicense creators\u2019 content, the company\u2019s aim is more likely to limit its legal exposure if creators\u2019 videos includes content from a third party that may look to sue TikTok for directly profiting off that third-party content by selling ads against a video containing the content through the Pulse program.<\/p>\n
\u201cThis license is really just shoring up their rights with regard to pre-existing materials because [TikTok is likely] thinking \u2018We may be subject to a third-party claim, and we really want to show not only do we have the rights to the content, which is the creative assets, [but] we also had the rights to anything that was included in it, that the creative person used because that creative person told us that they had the right to it,\u2019\u201d said Neclerio, referring to a stipulation in the terms that creators notify TikTok in writing ahead of time of pre-existing materials being included in a video.<\/p>\n
Nonetheless, the language gives the platform wide enough latitude with creators\u2019 content to unnerve prospective Pulse participants.\u00a0<\/p>\n
\u201cI think they\u2019re just trying to cover their bases. But technically by that contract, they could sell your videos out from underneath you and not pay you squat. The rest of [the Pulse program\u2019s terms] was fine. It\u2019s just basically the sub-licensing,\u201d said a second creator. They added, \u201cI don\u2019t want my viral videos sold to other people.\u201d<\/p>\n
A third creator shared these misgivings about the TikTok Pulse terms but, despite that, said they planned to agree to them and join the program. \u201cI don\u2019t put my best content on TikTok anyway,\u201d they said.<\/p>\n
What we\u2019ve heard<\/h2>\n
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\u201cThere\u2019s a [Facebook] Group now that Facebook\u2019s got for some creators. It\u2019s supposed to help provide some support for larger creators. But it\u2019s mostly canned responses.\u201d<\/p>\n
\u2014 Creator<\/em><\/cite><\/p><\/blockquote>\n
FAST focus<\/h2>\n
YouTube has picked a fine time to\u00a0reportedly<\/a>\u00a0toe the water of the free, ad-supported streaming TV market, which continues to emerge as streaming\u2019s heir to traditional cable TV.<\/p>\n
While FAST services like Paramount\u2019s Pluto TV and Roku\u2019s The Roku Channel will only receive 17% of the ad dollars spent on traditional TV and streaming in 2023, that share is projected to reach 42% by 2027, according to\u00a0a report released last week by consulting firm TVRev<\/a>.<\/p>\n
\n![](\"https:\/\/digiday.com\/wp-content\/uploads\/sites\/3\/2023\/01\/TVRev_FASTReport-Jan2023.png?is-pending-load=1\")
<\/figure>\n<\/div>\nMeanwhile, the amount of time people in the U.K. spent streaming FAST channels in 2022\u00a0increased by 51%<\/a>, according to TV and streaming technology provider Amagi, which powers FAST channels for companies including Fuse Media and Crackle Plus.<\/p>\n
FAST channels have been around for several years, but they continue to gain in popularity thanks to the sweet spot they serve in the market. In addition to being free at a time when subscription-based streamers keep raising their rates (see HBO Max), they provide the streaming equivalent of the passive, wallpaper programming that has been the bailiwick of cable TV (see Warner Bros. Discovery\u2019s TV network lineup).<\/p>\n
One prominent cable TV executive \u2014 FX Networks chairman John Landgraf \u2014 cited the market void that FAST channels are filling\u00a0in a recent interview with Vulture<\/a>. \u201cAnd I think that, right now, there\u2019s this interesting bifurcation in that linear channels are extremely good at [providing passive entertainment] and streaming platforms are not as good at that. There\u2019s this thing in between the two called the FAST channel, which is a free, ad-supported TV channel. Because FAST channels are channels, they\u2019re sort of linear playlists or whatever,\u201d Landgraf said.<\/p>\n
Numbers to know<\/h2>\n
$15.99:<\/strong><\/a>\u00a0New monthly subscription price for HBO Max\u2019s ad-free tier in the U.S.<\/p>\n
63%:<\/strong><\/a>\u00a0Percentage share of internet-connected U.S. households that own a smart TV.<\/p>\n
$13.1 billion:<\/strong><\/a>\u00a0How much money people in the U.S. spent on sports streaming subscriptions in 2022.<\/p>\n
2024:<\/strong><\/a>\u00a0Year when Netflix will start live-streaming the Screen Actors Guild Awards on its service.<\/p>\n
599:<\/strong><\/a>\u00a0Number of original scripted shows that aired across traditional TV and streaming in 2022.<\/p>\n
-2%:<\/strong><\/a>\u00a0Percentage decline year over year in NFL viewership for the most recent regular season.<\/p>\n
$2.3 billion:<\/strong><\/a>\u00a0How much money DAZN lost in 2021, largely because of soccer rights costs.<\/p>\n
What we\u2019ve covered<\/h2>\n
Why BMW is cutting ties with esports in 2023:<\/strong><\/p>\n
- \n
- Since 2020, the auto maker had spent millions of dollars with esports organizations and events.<\/li>\n
- BMW\u2019s marketing focus is shifting from esports to other gaming-related fields, like the metaverse.<\/li>\n<\/ul>\n
Read more about BMW\u2019s esports exit\u00a0here<\/a>.<\/em><\/p>\n
Creators face their \u2018worst nightmare\u2019 with possible TikTok ban:<\/strong><\/p>\n
- \n
- Creators are worried that the U.S. government will ban the short-form video platform.<\/li>\n
- They are concerned about being able to duplicate their TikTok followings on other platforms.<\/li>\n<\/ul>\n
Read more about creators\u2019 TikTok fears\u00a0here<\/a>.<\/em><\/p>\n
This sexual wellness brand is doubling (actually, tripling) down on CTV:<\/strong><\/p>\n
- \n
- Adam and Eve has tripled its investment in streaming ads over the past year.<\/li>\n
- The brand is using streaming to build an audience and then retarget them with display ads online.<\/li>\n<\/ul>\n
Read more about Adam and Eve\u2019s CTV strategy\u00a0here<\/a>.<\/em><\/p>\n
What we\u2019re reading<\/h2>\n
Apple\u2019s TV ad sales exec search:<\/strong><\/a>
Apple is in the market for a TV ad sales executive as the company preps a larger push into the streaming ad market, according to Insider.<\/p>\nYouTube\u2019s FAST play:<\/strong><\/a>
YouTube has started testing adding free, ad-supported streaming TV channels to its video platform and may officially launch the Pluto TV rival later this year, according to The Wall Street Journal.<\/p>\nTV advertising\u2019s multi-currency mess:<\/strong><\/a>
The move away from a single measurement currency provider in Nielsen to multiple currency options has been far from straightforward, and industry executives shared with Deloitte some of the top reasons complicating the transition, according to Ad Age.<\/p>\n