TikTok creators' revenue has increased 250% in the last six months thanks to the new TikTok Creator Fund, the company announced in a press release on Tuesday.
This is the new creator compensation program, reinvented a year ago, replacing a $1 billion (approximately CAN$1.35 billion) fund widely used by TikTok content creators was criticized.
The redesigned fund addresses creators' complaints about low payouts under the previous model, with some earning minimal amounts for videos that attracted millions of views.
Originally known as the Creativity Program, the revised program will now be called the Creator Rewards Program following the completion of beta. Unlike its predecessor, this program rewards creators for longer content and offers incentives for videos longer than a minute. TikTok is seeing a significant increase in user engagement with longer videos, with viewers spending 50% of their time on the app watching such content.
Paid subscription program
TikTok also announced Tuesday that creators could now offer paid subscriptions as part of its latest push to offer more monetization options to attract top talent to the app.
The company announced in its press release that its subscription option, formerly known as “Live Subscription,” will be expanded to non-live creators in the coming weeks.