As is inevitable with any business model that focuses on new users, like Netflix, Twitter, etc. TikTok has reached its peak. According to data.ai, TikTok’s user growth has finally stalled, resulting in a crossroads for the brand. It can either encourage existing users to stay, or keep mining for new users. Perhaps in an attempt to do the former, TikTok has announced a Creator Revenue Share Program that should allow for creators to gain better payment from their content. The Information reported that the short form video platform will launch a new ‘Creator Fund 2.0’ program, which will provide more monetization opportunities for the app’s top stars, while it’s also developing a program that will enable creators to paywall longer videos in the app.
As Social Media Today points out, this would be an improvement on the current Creator Fund. “According to The Information, TikTok’s new creator funding model will give creators higher payouts, in response to criticism of its first Creator Fund, which drove incremental revenue to creators.
“Many creators had also noted that as TikTok grew, creator funding reduced, which is counter-intuitive and has seen several big-name stars look to alternative apps as their main focus instead.”
With YouTube having launched its own short-form video content monetization program, perhaps TikTok is realising that they have serious competition that is willing and able to poach users.
