Jakarta, CNBC Indonesia – TikTok announced that the Creator Fund worth US$ 1 billion (15 trillion) will end on December 16 2023. This was conveyed by TikTok spokesperson Maria Jung.
Content creators in the US, UK, Germany and France will no longer be able to monetize their content through seed funding. Meanwhile, TikTok users in Italy and Spain are not affected by this change.
The Creator Fund was first introduced in 2020, at which time the company pledged to pay a total of US$1 billion over three years to people who create viral content on the app.
To participate in the Creator Fund, TikTok users must meet certain eligibility requirements. For example, users must be 18 years or older and residents of a country where this program exists. They must also meet the minimum threshold of 10K original followers, get at least 100K original video views in the last 30 days, and post original videos in accordance with TikTok’s Community Guidelines.
During this time, influencers and other content creators have noted the low payments they receive. Sometimes even just a few dollars for millions of views on one video. So it is impossible to earn income solely through content creator funds.
Quote The VergeTikTok did not respond to questions about whether it had paid out the entire US$1 billion in funds as promised.
Now, creator payouts are based on views and other engagement metrics. In February this year, the platform introduced a new monetization method it said would result in higher payouts for popular content creators, which it called the Creativity Program.
Unlike the creator fund, the Creativity Program requires creators to create videos longer than a minute, a big difference for an app that first thrived on short clips.
Rather than publicizing the pool of money from which it pays, TikTok says revenue will be based on views and other engagement metrics.
Since the launch of this new system, TikTok has invited eligible content creators to switch to the Creativity Program. Jung says content creators can earn 20 times the amount they make on the Creator Fund.
The TikTok Creator Fund program being closed is not surprising, because this program is limited to a three-year commitment in terms of the amount of funds that will be distributed.
Creators in the US, UK, Germany and France who are part of this fund will be able to take part in the Creativity Program.
Making money on TikTok has always been more unpredictable than on other platforms like YouTube or Twitch. YouTube in particular has exploited the low payout problem by offering advertising revenue shares on Shorts, its TikTok competitor.
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