The video platform and social network TikTok announced a $ 300 million fund that will be distributed among content creators in Europe. This value will be reached in three years, and for 2020 the expected investment is US $ 70 million.
According to Business Insider, the goal is to retain the most famous “tiktokers” dedicated to the service, so that they have a monetization that goes beyond outside partnerships or donations. Gradually, ways to make money are emerging there, including a new platform for advertisers and brands.
In the United States, an investment fund similar to content creators will distribute US $ 200 million in the first year alone. For now, there are no details on how this financing will work and how the beneficiaries will be chosen.
It is worth remembering that, currently, TikTok is in the middle of a political crisis. The application has been banned in India and is threatened to be banned in the United States as well, as it is controlled by a Chinese manufacturer, ByteDance. The sale to North American investors or an interested company may be the solution to allay this situation.
In addition, according to a recent complaint, Instagram tried to bring digital influencers from TikTok to its similar feature, Reels, by promising payments.