X settles music publisher lawsuits to clear path for creator monetization
X has settled longstanding copyright and antitrust litigation with major music publishers, including Universal, Sony, and Warner. The move is expected to clear a path for the platform to implement revenue-sharing models similar to competitors and better integrate music into its video creator strategy.
Key Takeaways
- Legal settlement ends a 2023 lawsuit by 17 publishers seeking $250 million for infringement of 1,700 songs.
- Moves X toward standard licensing models used by Meta and TikTok, which dedicate up to 20% of ad revenue to rights holders.
- Eliminates a multi-year legal overhang that discouraged musical artists like Taylor Swift and Beyoncé from platform integration.
- Paves the way for enhanced Creator Ads Revenue Sharing, which currently requires 5 million impressions for eligibility.
Why It Matters
The settlement resolves a critical friction point that has historically alienated rights holders and limited X's video capabilities compared to Meta and TikTok. By aligning with industry-standard music licensing, X can finally offer a competitive environment for multi-format creators who rely on popular audio for engagement. This is a foundational step for the 'everything app' vision, as it unlocks potential for deeper integration of commercial music into core video and messaging features. Watch for the official announcement of a new music revenue-sharing tier, specifically how individual publisher payouts will be structured compared to TikTok’s Pulse Premiere.
Additional Context
The resolution follows a volatile legal history where X initially countersued the National Music Publishers' Association (NMPA) in early 2024, alleging antitrust collusion to force unfavorable licensing terms. Per Reuters (July 2026), these parallel suits in Tennessee and Texas were dismissed simultaneously, though neither party disclosed the financial terms of a formal licensing agreement. This shift coincides with a slight recovery in X’s advertising business. EMARKETER reported in March 2025 that X was expected to see its first annual ad growth since 2021, driven partly by small- and medium-sized businesses and political spending. Globally, the platform's ad revenue is projected to reach approximately $2.46 billion in 2026, up from $2.26 billion in 2025.
X has also been aggressively iterating on its monetization requirements to retain talent. In November 2024, the platform pivoted its creator payout model to favor engagement from Premium subscribers rather than raw ad impressions in replies. According to Nixus (March 2026), this shift resulted in X paying out over $45 million to roughly 150,000 creators. By resolving the music dispute, X can theoretically integrate licensed audio into these payout loops, a feature that has been central to Meta’s success; per EMARKETER (April 2026), Meta is forecast to reach $243 billion in net ad revenue this year, largely by optimizing high-engagement video formats like Reels that use licensed content.
Read full article at kavout.com
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