Social Media

Facebook and Instagram will invest over $1billion in content creators

Reuters July 14 | Updated on July 15, 2021

Facebook is opening its wallet to woo creators with major fan followings from platforms like YouTube and TikTok

Facebook Inc will spend $1billion 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 programmes 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 Inc's YouTube and short video app TikTok. Multiple major tech platforms are on the offensive to attract and keep social media personalities with new payments and services.

Apps support creators

TikTok has committed to spending $2 billion to support creators over three years. Snap Inc's Snapchat used to pay creators a total of $1 million per day to post popular short-form videos on its service and says it still distributes millions per month to support creators through its Spotlight programme.”With the 3 billion install milestone, TikTok is the fifth non-game app to join a tier that's historically been the exclusive domain of Facebook," said mobile insights firm Sensor Tower in a Tuesday 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 live-streamed videos.

Also read: We are going full steam ahead with our India plans, says Facebook MD

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.

Published on July 15, 2021

Follow us on Telegram, Facebook, Twitter, Instagram, YouTube and Linkedin. You can also download our Android App or IOS App.

  1. Comments will be moderated by The Hindu Business Line editorial team.
  2. Comments that are abusive, personal, incendiary or irrelevant cannot be published.
  3. Please write complete sentences. Do not type comments in all capital letters, or in all lower case letters, or using abbreviated text. (example: u cannot substitute for you, d is not 'the', n is not 'and').
  4. We may remove hyperlinks within comments.
  5. Please use a genuine email ID and provide your name, to avoid rejection.