TikTok is working on a new feature that allows content makers to offer videos for a sum of money, as publishers can select videos that the user can only watch after paying an amount starting from one US dollar, according to a report published today by The Information.
Through this step, the company hopes to increase its audience base from older users, specifically in the United States, where most users are between 18 and 29 years old. The company also hopes that this will help encourage publishers to make more videos in order to generate more profits.
note that TikTok ranked #1 among all apps and games by consumer spend in both Q1 2022 and the previous quarter – becoming the first app to ever beat a game in consumer spend in a given quarter — first in Q4 2021, and again in Q1 2022.
This step is similar to what competing platforms such as YouTube and Instagram do, which allow content creators to publish exclusive clips for paid subscribers to the publisher’s channel that are not available to all users.
In addition, TikTok intends to increase the profits that free content creators get for the views that their posts get. According to the report, the profit-sharing program that the company launched three years ago has brought publishers up to $1 billion in profits, but many content makers say that the program pays very little for videos that do not achieve wide circulation, which is what the company wants to change in updated next.
TikTok plans to require a minimum of 100,000 followers before content makers can take advantage of the profit-increasing program.