An AFP coworker poses for a photo using the TikTok smartphone app in 2018. December 14 In Paris. – TikTok is a Chinese short video sharing program that has proven to be extremely popular this year. (Photo – – / AFP) (Photo credit should be read – / AFP via Getty Images)
– / AFP | GettyImages
TikTok has announced plans to provide more than $ 2 billion to developers over the next three years.
The video-sharing social media program, in an updated blog on Wednesday, said it will give developers in the U.S. more than $ 1billion over the next three years. USD and more than twice as much as in the world.
In Europe, TikTok said it would give developers $ 70 million over the next year and at least $ 300 million over three years.
To receive funding, TikTok users will need to apply to TikTok. If successful, TikTok will pay them regularly to publish content on their platform.
Details of the application process and how much people can earn are yet to be revealed.
“To continue to support our developers, we are establishing the TikTok Developer Fund to encourage those who dream of using their voices and creativity to inspire careers,” said Vanessa Papp, CEO of TikTok.
Pappas said the foundation was set up “to support ambitious creators who seek to secure a livelihood through their innovative content.”
When the blog post was first posted on July 23, Pappas said the U.S. fund will start at $ 200 million.
But in an update on Wednesday, she said: “We have seen an incredible response to the Developer Fund and are excited to share that we expect the fund to grow to more than $ 1 billion over the next 3 years and more than double that of the world.”
TikTok, part of China’s ByteDance, has become hugely popular around the world, reaching more than 2 billion downloads in less than four years, according to the App Tracker Sensor Tower.
The success has caused headaches for U.S. technology companies, namely Facebook-owned Instagram and alphabet-owned YouTube. All platforms want social media stars with millions of fans to appear on their programs as it helps increase the number of users and generate more revenue.
“Access to direct revenue generation prevents the most popular TikTok from posting ads and can also attract new developers from a growing group of competitors,” said Michael Norris, head of research and strategy at China-based consulting firm China.
To compete more with TikTok, Instagram plans to release a new feature called Reel, which is expected to launch in the U.S. in early August after being tested in India, Brazil, France and Germany.
TikTok wants to know what the circle of competitors is like in order not to use the user’s time and the best creative talents – especially Instagram Reels and Triller, Norris told CNBC.
Facebook has made lucrative offers to high-level TikTok influencers with millions of followers to lure them to Instagram Reels, according to a report in The Wall Street Journal on Tuesday. In some cases, Instagram has offered hundreds of thousands of dollars to persuade TikTok developers to use the reel, the report said, citing people familiar with the matter. The CNBC could not independently verify these allegations.
TikTok’s links with China are becoming problematic for the company, and countries are concerned about the possibility of TikTok’s user data being transferred to China’s ruling Communist Party. TikTok has repeatedly said that it does not and will not do so.
But in India, he was banned, and President Donald Trump said on Wednesday that his administration is also considering a ban.
To address the problem, TikTok tried to distance itself from ByteDance by hiring U.S. chief executive Kevin Mayer, a former Disney broadcast manager. She has also set up local offices around the world and is currently deciding where to set up a new international headquarters, with all possible bidders for London, Los Angeles, New York, Singapore and Dublin.
As a last resort, ByteDance is also considering selling a stake in TikTok to U.S. investors. ByteDance investors are reported to have valued the program at about $ 50 billion.