AFP colleague poses for a photo in Paris on December 14, 2018 using the smart phone application Tickcock. – TikTok, is a Chinese short-form video-sharing app, which has proved wildly popular this year. (Photo by – / AFP) (Photo credit must read – / AFP via Getty Images)
– / afp | Getty Images
Tiktok has announced $ 2 billion to be paid to creators over the next three years as it heads-to-head with US rivals Instagram and YouTube.
The video-sharing social media app said in a blog update on Wednesday that it would give creators over $ 1 billion over the next three years in the US, and more than doubled globally.
In Europe, TikTok said it would give $ 70 million to creators over the next year and at least $ 300 million within three years.
To use the funds TikTok users must submit an application to TikTok. If successful, TikTok will provide them regular payment for posting content on their platform.
Details of the application process and how much individuals can earn are yet to be disclosed.
Tickcock US General Manager Vanessa Pappas said in a blog post, “To support our creators, we are starting to encourage those who use their voice and creativity to grow inspiring careers. Encouraged. ”
Pappas said the fund has been set up to help support “aspiring creators who are looking for opportunities to increase livelihood through their innovative content.”
When the blog post was first published on July 23, Pappans said the US fund would start at $ 200 million.
However, in an update on Wednesday, she said: “We have seen an incredible response to the Creators Fund and are excited to share that we expect the fund to exceed $ 1 billion in the US over the next 3 years , And more than double globally. “
According to app tracker Sensor Tower, Tiktok has become wildly popular worldwide due to China’s ByteDance, which has downloaded more than 2 billion downloads in less than four years.
This success has given American technology companies, such as Instagram owned by Facebook and YouTube owned by Alphabet, some headaches. All platforms want social media stars to appear on their app with millions of fans as it helps them boost their user numbers and generate more revenue.
“Access to the path of direct demonetisation keeps the posting of top creators at TickTock, and a growing number of competitors may also attract new manufacturers,” said Michael Norris, a research and strategy manager at Shanghai-based consultancy agency China.
To compete more directly with TickTalk, Instagram is to launch a new feature called Reels, which is due to roll out in the US in early August after testing in India, Brazil, France and Germany.
“How many contestants Tiktok is circling, Nab is looking for user time and top creative talent – especially Instagram reels and trillers,” Norris told CNBC.
According to a report by The Wall Street Journal, on Tuesday, Facebook is offering attractive offers to lure viewers of high-profile ticcott to Instagram reels with millions of followers on Facebook. In some cases, Instagram is offering hundreds of thousands of dollars to convince the makers of Teaktok to use reels, the report said, adding that there are people familiar with the matter. CNBC was unable to independently verify these claims.
TikTok’s links to China are becoming problematic for the company, countries that have expressed concerns about the possibility of passing TikTok user data to China’s ruling Communist Party. Tiktok has said repeatedly that he will not and will not do so.
However, it has been banned in India and President Donald Trump said on Wednesday that his administration is considering the ban as well.
To get around the issue, Tiktok has tried to distance himself from ByteDance by hiring Kevin Meyer, a former chief executive of Disney as an American chief executive. It has also established local offices around the world and is currently deciding where to place a new international headquarters with all potential contenders in London, Los Angeles, New York, Singapore and Dublin.
As a last resort, Bytdance is also considering selling TikTok’s stake to US investors. Investors in ByteDance have reportedly valued the app at around $ 50 billion.