The Hustle

The billion-dollar ‘creator fund’ wars, explained

The social giants are playing a game of ‘who can invest the most in creators.’

Figuratively Literally throwing money at the problem (Source: Scott Barbour / Getty Images)

More than ever, it feels like everyone will soon get paid to post on social media. (Some consider this “Heaven on Earth”; others, “Hell”.)

In the past year, social giants like Snap Inc. and TikTok have launched massive creator funds, aimed at incentivizing big-name social stars to stay on the platforms.

Now, YouTube is saying, “Hold my beer.”

This week, the company announced its YouTube Shorts Fund

That may sound like a nonprofit for khakis, but it’s actually a $100m incentive for creators to spend less time on TikTok and more time on YouTube’s TikTok clone.

YouTube is no rookie when it comes to building out creative platforms. In 2019, its creative ecosystem contributed:

Snapchat, Instagram, and TikTok are also on the fund train

TikTok also plans to boost its fund to $1B+ in the US over the next 3 years and more than double that globally.

While everyone’s busy copying TikTok, the company is building a ‘LinkedIn for Gen Z’ video job platform and Instagram-like ecommerce features.

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