news: tick tock announced on December 16th that it will close its $1 billion Creator Fund.
- Instead, TikTok will rely on a number of alternative channels to pay creators. creativity program and TikTok pulse.
Creator Fund end date: TikTok's controversial creator fund closure completes a year of changes to how the social media company processes payments to content creators.
- Back when funding creators was the primary method of compensation, TikTok and other social media platforms Instagram was notorious for small payment and unclear rules Regarding payment terms.
- Instagram, TikTok, and YouTube All are vying for the supremacy of short-form videos, and luring creators with bigger rewards has become a priority. Last year, YouTube announced a revenue sharing program. YouTube short Now available to eligible creators to hold 45% of advertising revenue.
- This announcement had an immediate impact on YouTube Shorts, with a proliferation of major publishers and creators on the platform, sending a clear message that creators prefer a clear and relatively high-percentage sharing model.
Next steps: YouTube's success with revenue sharing has led other platforms to change gears, creating a creator economy that prioritizes stable payouts over unstable funding.
- TikTok announced several creator payment options throughout 2023, some repeating the Creator Fund approach. Opacity Regarding payment rules. But TikTok says new initiatives like its creativity program could potentially reward creators 20 times more than the fund.
- Moving away from funding creators and introducing revenue sharing has also benefited other platforms. snap has attracted major influencers throughout the year due to higher rewards through . snap star program.flat X (formerly Twitter) tried Deploy revenue sharing— But he soon ran into trouble and sent funds to a controversial figure.
Our view: For creators, there are three key issues to consider when deciding which platform to prioritize: payout size, transparency, and audience size.
- TikTok's cultural relevance helps it remain a desirable platform, and higher pay is certainly a plus, but research shows that what creators prefer What is most valuable is Stability and safety.
