An AFP collaborator presents an image using the TikTok smartphone app on December 14, 2018 in Paris. – TikTok is a Chinese short video sharing application that has become very popular this year. (Photo by – / AFP) (Photo credit should read – / AFP via Getty Images)
– / AFP Gettyimages
TikTok has announced plans to provide more than $ 2 billion to creators over the next three years, as it is a direct link to US rivals Instagram and YouTube.
A social media video sharing application on Wednesday said it would provide more than $ 1billion to U.S. creators over the next three years, more than double the global number.
In Europe, TikTok said it would provide creators with $ 70 million next year and at least $ 300 million in three years.
TikTok users will need to apply to TikTok to gain access to funding. If successful, TikTok will provide them with regular payments for publishing content on its platform.
Details of the application process and how much individuals can earn have yet to be disclosed.
“To further support our creators, we are establishing the TikTok Creator Fund to encourage those who dream of using their voices and creativity to stimulate inspiring careers,” said Vanessa Pappas, CEO of TikTok USA, in a blog post.
Pappas said the fund was set up “to support ambitious creators who seek livelihood opportunities through their innovative content.”
When the first contribution was published on July 23, Pappas said the US fund would start with $ 200 million.
However, she said in an update on Wednesday: “We have seen an incredible response to the Creation Fund and look forward to sharing that we expect the US fund to come to more than $ 1 billion over the next 3 years and more than double globally. ‘ “
Owned by the Chinese company ByteDance, TikTok has become a popular popularity around the world. According to Tower Tracker, it has more than 2 billion downloads in less than four years.
This success has brought some headaches to American technology companies, specifically Instagram owned by Facebook and YouTube owned by the alphabet. All platforms want social media stars with millions of fans to appear in their applications because it helps them increase the number of users and generate more revenue.
“Access to direct monetization paths keeps the best creatives posted on TikTok and can also attract new creators from a growing group of competitors,” said Michael Norris, research and strategy manager at the Shanghai-based consulting agency.
In an effort to compete more directly with TikTok, Instagram is expected to launch a new feature called Reels, which will be launched in early August after testing in India, Brazil, France and Germany.
“TikTok is well aware of how many competitors are circling, trying to gain user time and creative talent – especially Instagram Reels and Triller,” Norris told CNBC.
According to a report in the Wall Street Journal on Tuesday, Facebook is issuing lucrative offers for prominent TikTok executives with millions of followers to attract them to Instagram Reels. In some cases, Instagram offers hundreds of thousands of dollars to persuade TikTok creators to use reels. The report quoted people familiar with the matter. CNBC was unable to verify these claims independently.
TikTok’s links with China appear to be problematic for the company, with countries raising concerns about the possibility of TikTok user data being passed to the Chinese Communist Party. TikTok has repeatedly said he won’t and won’t do it.
However, it was banned in India, and President Donald Trump said on Wednesday that his government was also considering a ban.
In an effort to circumvent this problem, TikTok tried to distance itself from ByteDance by hiring an American leader in the form of Kevin Mayer, a former Disney streaming manager. It has also set up local offices around the world and is currently deciding on the location of a new international headquarters with all potential applicants for London, Los Angeles, New York, Singapore and Dublin.
As a last resort, ByteDance is also considering selling its TikTok stake to US investors. ByteDance’s investors reportedly rated the application at about $ 50 billion.