The Chinese owned shot video app TikTok is in the process of creating a fund of $200 million which the company will use to retain its top users while also attracting new ones.
Analysts said that this was the signal of a growing company.
The new program aims to “help support ambitious creators who are seeking opportunities to foster a livelihood through their innovative content,” the video app company said in a statement on Thursday.
Distribution of the cash will be made later this year and this fund will become just one of the ways that users can earn money on the platform, TikTok said. Currently the more popular users on the platform can make money by livestreaming or through brand partnerships.
TikTok said that those users who are 18 years or older, reside in the United States and “consistently” post original videos according to the guidelines of the platform to be eligible for the cash doles.
The company will be accepting applications to enter the program starting next month. However there was no clarity on how many of the users’ application TikTok will accept or how much money will be given to the creators.
While not specifying how much money he company would be disbursing, a company spokesperson said that the $200 million is just the starting amount for the fund which will initially be spent to help the fledgling app to stay competitive and hold on to the top talent on the platform.
There are a number of challenges being faced by TikTok which includes a prospective ban on it by the United States government because of its Chinese ownership and claims of the app being a security risk for the country.
Earlier this week, the company had said that it will be hiring a total of 10,000 people in the US over the next three years which will be a significant increase from the current 1,400 employees that it has currently in the United States.
Some measures have been taken by TikTok to distance itself from China. In addition to a recent hiring of an American CEO, the company has also confirmed that its parent company is contemplating a corporate restructuring which could include setting up a headquarters for the video sharing app outside of China.
TikTok’s rivals are also however making moves to increase competition. A TikTok-like function called Reels is being launched by Instagram, owned by Facebook. This new feature will allow users to record and edit 15-second videos that will be set to music and audio and then upload the video to their stories and Instagram’s Explore feature.
A $100 million fund to “amplify” content from Black users was recently announced by YouTube, which lets users monetize their channels.
(Adapted from CNN.com)