TikTok announced in a blog post on Monday that it is setting aside a $2 billion fund to pay creators on the platform, up from the initially announced $200 million. The Creator Fund aims to keep creators on TikTok, providing them with an incentive to stay on the platform. Creators on TikTok can only monetize via live streams, as normal video posts are not monetized. This vastly differs from platforms like YouTube where creators can directly monetize their content without sponsorships.
“We have seen an incredible response to the Creator Fund and are excited to share that we expect this Fund will grow to over $1 billion in the U.S. in the next 3 years, and more than double that globally,” the blog post says. The fund aims to “help support ambitious creators who are seeking opportunities to foster a livelihood through their innovative content” according to TikTok.
The fund announcement comes as a Wall Street Journal report revealed that Instagram was poaching TikTok creators to create content on Instagram’s “Reels” feature, similar to TikTok. The platform also announced a separate fund for creators in the European region, setting aside $70 million in the first year for that region alone. That fund is also expected to rise to at least $300 million in the next three years.
TikTok’s Europe General Manager Rich Waterworth says, “Creativity is the lifeblood of TikTok, and we want to mark our second birthday by supporting the community that makes us who we are. To further nurture and promote the creative talent that is so vital to the U.K., we’re excited to announce the launch of the TikTok Creator Fund in the U.K., alongside a number of other European countries we operate in.”
TikTok creators will be able to apply for the fund in the coming weeks.
The announcement comes a critical time where TikTok is being investigated by the White House, considering banning the popular platform altogether from the United States for ties to the Chinese government. TikTok has already been banned in India, the platform’s largest market. TikTok has repeatedly said that it has no ties with the Chinese government, and even announced that it will be hiring for thousands of jobs in the United States soon.
TikTok USA might also be spun off into a separate company, as rumors suggest, due to these security concerns.
Do you want to publish on Apple News, Google News, and more? Join our writing community, improve your writing skills, and be read by hundreds of thousands around the world!