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TikTok, whose parent company is in China, has announced plans to give creators more than $2 billion over the next 3 years while confronting rivals US instagram and YouTube.
The video-sharing app on social media said Wednesday in a blog post that would give American creators more than a billion over the next 3 years, and more than double the world.
In Europe, TikTok said it would give creators $70 million over the next year and at least $300 million within 3 years.
TikTok users will want to submit a request to TikTok to get the funding. If successful, TikTok will provide you with regular invoices for posting content on your platform.
The main points of the application procedure and the amount Americans can earn have yet been disclosed.
“To increase our creators, we are launching the TikTok Creator Fund to motivate those who dream of using their voice and creativity to motivate inspiring careers,” Vanessa Pappas, CEO of TikTok U.S., said in a blog post.
Pappas said the fund was created “to help ambitious creators look for opportunities to make a living from their cutting-edge 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 Wednesday, he said, “We’ve noticed a reaction to the Creator Fund and we’re excited about the percentage that we expect this Fund to grow to more than $1 billion in the United States over the next 3 years, and more than double in the world.”
Owned by ByteDance of China, TikTok is incredibly popular worldwide, accumulating more than 2 billion downloads in less than 4 years, according to Sensor Tower.
This good fortune has given corporations of the American generation Instagram, owned by Facebook and YouTube, owned by Alphabet, a puzzle. All platforms need social media stars with millions of enthusiasts in their apps, helping them build their user base and generate more revenue.
“Access to direct monetization channels allows creatives to post on TikTok and can also attract new creators among a growing number of competitors,” said Michael Norris, director of studies and strategy at the Shanghai-based consulting agency.
To compete more with TikTok, Instagram is expected to launch a new feature called Reels, which will be released in the US. In early August after being tested in India, Brazil, France and Germany.
“TikTok is fully aware of the amount of competition circulating in circles, to save the user time and the most productive artistic skill, especially Instagram Reels and Triller,” Norris told CNBC.
Facebook has made lucrative donations to high-level influencers on TikTok with millions of fans to lure them to Instagram Reels, the Wall Street Journal reported Tuesday. In some cases, Instagram has handed out thousands of dollars to convince TikTok’s creators to use Reels, according to the report, which mentions others familiar with the topic. CNBC was unable to independently determine those assertions.
TikTok’s ties with China are proving problematic for the company, as the countries involved in the option of user knowledge being transmitted to the ruling Communist Party of China. TikTok said he doesn’t and won’t.
However, it has been banned in India and President Donald Trump said Wednesday that it also contemplates a ban.
In an attempt to fix the problem, TikTok attempted to distance himself from ByteDance by hiring an American general manager: Kevin Mayer, Disney’s former broadcasting chief. It has also established local offices around the world and makes a decision on where to establish a new headquarters abroad, with potential applicants in London, Los Angeles, New York, Singapore and Dublin.
As a last resort, ByteDance is also promoting a stake in TikTok among U.S. investors. ByteDance investors are reported to have valued the app at about $50 billion.
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