In a surprising turn of events, TikTok has announced the discontinuation of its original Creator Fund, a $1 billion initiative launched in 2020. The fund was designed to support ambitious creators who sought opportunities to foster a livelihood through their innovative content. However, the fund will cease to exist starting December 16th, 2023.
The Creator Fund was a unique initiative that distributed money based on creators’ shares of the platform’s overall views. It aimed to help eligible users making content on the app, providing them with financial support over three years. However, the fund faced criticism from creators who complained about low payouts, despite their videos garnering millions of views.
One of the vocal critics of the fund was Hank Green, an early YouTube star and a well-known figure in the internet culture. Green argued that the fund was outdated and worked more in favor of TikTok’s bottom line rather than its creators’ best interests. He shared that per 1,000 views, he was making about 2.5 cents, a figure echoed by other creators who also shared their disappointingly low income despite having large viewership numbers.
The discontinuation of the fund will affect creators in the United States, United Kingdom, France, and Germany. However, creators in Italy and Spain will not be affected by this change.
As one door closes, another opens. TikTok is shifting its focus to its newer Creativity Program. This program was developed based on the learnings and feedback from the Creator Fund. It aims to resolve some of the initial complaints about the fund and offers a higher average gross revenue for qualified video views.
Unlike the Creator Fund, the Creativity Program has specific requirements on video length, rewarding creators who make videos longer than one minute. To be eligible for the Creativity Program, creators must be at least 18 years of age and have at least 10,000 followers and at least 100,000 views in the last 30 days.
TikTok has stated that eligible creators who post high-quality, original content longer than one minute have the potential to earn up to 20 times the amount previously offered by the Creator Fund. This shift signifies TikTok’s commitment to continually evolve its products and apply resources elsewhere to best support creators and explore new offerings.
While the end of the Creator Fund marks the end of an era, the advent of the Creativity Program signals a new chapter in TikTok’s journey. It remains to be seen how this shift will impact the creator community and the platform’s growth in the long run.