TikTok unveils a USD 200 Million fund for its creators in United States
TikTok, the world’s most popular social video sharing app, has announced its plan to roll out a TikTok creator fund with an initial budget of USD 200 million in the United States to support its creators. Details of the plan were provided in a blog post on the company’s newsroom on Wednesday. The company has also claimed that it has received an “incredible response” to its initiative and hopes the fund will increase to over a USD 1 Billion in the coming 3 years.
Privacy concerns seem to plague TikTok
In recent months TikTok has been in the receiving end of sharp attacks from politicians in the United States and other parts of the world. It has been accused of data theft and there is a widespread belief that it is bound to share data with Chinese authorities under Chinese law. However, its parent company has repeatedly said that it has not shared any data with the Chinese government and will not do so if asked. In fact, in response to the Government of India’s decision to ban the app, it had publically stated that it places “highest importance to user privacy”
Efforts to move away from Chinese heritage
In recent months TikTok has made focussed efforts to showcase itself as a global company. It had hired Kevin Mayer, the former head of Disney Streaming as its CEO. It has also considered shifting its headquarters to the United States and there has been even talk of selling stakes.
Creator Fund is likely to help TikTok challenge emerging rivals
While some may consider the creation of a substantial creator fund as a part of its charm offensive; there is solid business logic behind the move. Already the company is experiencing completion from several start-ups in the short video space. However, its biggest completion is likely to come from Instagram which is all set to release its short video feature Reels in the USA while the feature is already live in India. Facebook-owned Instagram has both the financial muscle and existing user base to steal users from TikTok and it imperative for it to keeps it content versatile and retain its most popular creators.