Facebook, Instagram invest US$1,3bn
Facebook will spend billion ( US$ 1.3 billion) on social media creators through the end of 2022 in a fight for top talent announced in a week when TikTok became the first rival mobile app to hit 3 billion global downloads.
Facebook’s investments will include bonus programs to pay creators who hit certain milestones on its apps, including photo-sharing service Instagram, and fund users to produce content, the company said.
The social media giant is opening its wallet to woo creators with major fan followings from platforms like Alphabet’s YouTube and short video app TikTok.
“We want to build the best platforms for millions of creators to make a living,” Facebook chief Mark Zuckerberg said in a post.
“Investing in creators isn’t new for us, but I’m excited to expand this work over time.”
Multiple major tech platforms are on the offensive to attract and keep social media personalities with new payments and services. TikTok has committed to spending US$ 2 billion to support creators over three years.
Snap’s Snapchat used to pay creators a total of US$ 1 million per day to post popular shortform videos on its service and says it still distributes millions per month to support creators through its Spotlight program.
“With the 3 billion install milestone, TikTok is the fifth nongame app to join a tier that’s historically been the exclusive domain of Facebook,” said mobile insights firm Sensor Tower in a report.
Facebook said its bonuses so far are by invitation only. On its main platform video creators and online gamers will receive a monthly bonus if they hit milestones like broadcasting a certain number of hours to earn Stars, a form of digital tipping that fans can use to pay their favourite creators during livestreamed videos. Instagram’s bonus programmes will include incentives to use Reels, its copycat TikTok feature that showcases short-form video clips. Creators will earn money based on how their Reels videos perform, the company said.— Bloomberg.