An AFP contributor poses for a photo using the TikTok smartphone app on December 14, 2018 in Paris. – TikTok, is a Chinese short-form video sharing application, which has proven to be very popular this year. (Photo by – / AFP) (Photo credit should read – / AFP via Getty Images)
– / AFP | Fake images
TikTok has announced plans to give creators more than $ 2 billion over the next three years as it comes face to face with its American rivals Instagram and YouTube.
The video-sharing social media app said in a blog update on Wednesday that it will give creators in the US more than $ 1 billion in the next three years, and more than double that worldwide.
In Europe, TikTok said it will give creators $ 70 million over the next year and at least $ 300 million in three years.
TikTok users must submit a request to TikTok to access the funding. If successful, TikTok will provide regular payments for publishing content on its platform.
The details of the application process and how much people can earn have yet to be revealed.
“To further support our creators, we are launching the TikTok Creator Fund to encourage those who dream of using their voices and creativity to spark inspiring careers,” said Vanessa Pappas, general manager of TikTok US, in a blog post.
Pappas said the fund had been created “to help ambitious creators looking for opportunities to foster a livelihood through its innovative content.”
When the blog post was first published on July 23, Pappas said the US fund would start with $ 200 million.
However, in an update on Wednesday, he said: “We have seen an incredible response to the Creator Fund and we are pleased to share that we expect this Fund to grow to more than $ 1 billion in the United States in the next 3 years, and more than duplicate that globally. “
Chinese roots
Owned by China’s ByteDance, TikTok has become hugely popular worldwide, accumulating more than 2 billion downloads in less than four years, according to app tracker Sensor Tower.
This success has given tech companies in the United States, namely Alphabet-owned Facebook and YouTube, a bit of a headache. All platforms want social media stars with millions of fans to appear on their apps because it helps them increase their number of users and generate more revenue.
“Access to direct monetization pathways keeps top creatives posting on TikTok and can also attract new creators from a growing array of competitors,” said Michael Norris, research and strategy manager at Shanghai-based consultancy AgencyChina. .
In an attempt to compete more directly with TikTok, Instagram will launch a new feature called Reels, which will launch in the US in early August after being tested in India, Brazil, France and Germany.
“TikTok is well aware of how many competitors are circulating, seeking to capture user time and superior creative talent, especially Instagram Reels and Triller,” Norris told CNBC.
Facebook has been making lucrative offers to high-profile TikTok influencers with millions of followers to attract them to Instagram Reels, according to a Wall Street Journal report on Tuesday. In some cases, Instagram has been offering hundreds of thousands of dollars to convince TikTok creators to use Reels, according to the report, citing people familiar with the matter. CNBC was unable to independently verify these claims.
TikTok’s ties to China are proving problematic for the company, and countries are expressing concern that the data from TikTok users may be passed on to the ruling Communist Party of China. TikTok has repeatedly said that it will not and will not.
However, it has been banned in India, and President Donald Trump said Wednesday that his administration is also considering banning it.
In an attempt to fix the problem, TikTok has tried to distance itself from ByteDance by hiring a US CEO in the form of Kevin Mayer, former Disney broadcast chief. It has also established local offices around the world and is currently deciding where to place a new international headquarters, with London, Los Angeles, New York, Singapore and Dublin as potential contenders.
As a last resort, ByteDance is also considering selling a stake in TikTok to US investors. ByteDance investors have reportedly valued the app at around $ 50 billion.
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