Facebook is offering high-priced contracts to TikTok creators to share their content to Instagram’s Reels, The Wall Street Journal reports.
“Instagram has made lucrative offers to some of TikTok’s most popular creators to use the new service, Reels, according to people familiar with the matter. […]The potential payments for some would be in the hundreds of thousands of dollars, some of the people said.”
With Instagram Reels, Facebook is adding pressure to TikTok. Its rival app seems more stable for top TikTok influencers amid a potential ban in the US.
India already banned it, along with all Chinese-owned apps. So, former TikTok creators and users moved to local apps like Chingari and Reposo. This saw massive surges in downloads for rival apps.
YouTube has seen an upswell of TikTok creators to its platform as well.
Facebook may be hoping the fear of an impending global ban on TikTok will drive creators to take its lucrative offer. And it may lead to exclusive publishing contracts to Instagram Reels.
“A popular teenage TikTok user with millions of followers said that he would likely join Instagram Reels after the company reached out earlier this month. He declined to discuss the details of the call, saying that the company wanted him to be discreet,” writes The Wall Street Journal.
Facebook may be hoping these newly signed creators will drive a major campaign for the wider release of Instagram Reels next month.
Pay the creators
Top TikTok creators may want to consider the offer. TikTok is a major cultural platform. But it has no ripe ecosystem to ensure creators are paid for their work.
The TikTok Creator Marketplace connects brands with influencers for promotions. But it pales in comparison to the revenue streams of YouTube and Facebook.
Short-form video app Vine ended that way. It was influential and was home to major web celebrities. And it had no monetization to compete with its rivals.
Top Vine creators requested direct payments from Vine. But the Twitter-owned service declined. It triggered the creators to shift to rival platforms. Their millions of audiences followed them. Usage dropped. And Vine ceased to exist.
Facebook may be hoping to start a similar godsend through top TikTok creators.
TikTok has released a $200 million Creator Fund to pay its top creators. What’s the use if a ban looms around the corner?
US lawmakers and regulators are reviewing the company. Other regions also mull over their options.
TikTok creators with massive followings may consider Instagram Reels as insurance.