Big tech found a way to get the biggest bang for the buck. It’s to pay publishers and record labels lump-sum licensing advances (or so-called ‘buy-out’ deals) rather than sharing a proportion of revenue for every listen/use of music on their platforms.

After years of scrutiny, Facebook abandoned the ancient lump sum practice and accepted the ‘revenue-share’ model for user-generated video content. Video creators that use licensed music in videos over 60 seconds long on Facebook will receive a 20% share of any advertising revenue. The 80% will be split between music rights holders and Meta. Influencers with sizable followings will benefit and reap some rewards.