The Instagram app rolled out a new tool which will pay money to the online video creators. The video creators will get money off the videos they post, as it battles for creative talent in the crowded market.
Instagram Adds Ways for Online Video Creators to Earn Money
Instagram is already promoting the collaborations between business and popular users who get paid for promoting their products. Now, it will start letting a few of the users to sell “badges” to the fans while they are live on Instagram.
Now, Instagram will also give ads in IGTV videos, with 55% of the revenue, which will go the creator against which those ads run. In early tests, they selected for the tools like Avani Gregg, Eitan Bernath, and Salice Rose, rising stars. They built many followings on TikTok which is owned by the Chinese tech giant ByteDance.
The Chief Operating Officer, Justin Osofsky says, the badges will sold at three prices $0.99, $1.99, and $4.99. From next month it will be starting.
However, Instagram has not planned anything to offer a subscription for new content. Justin Osofsky also said, Nor was it aiming to lure big-name figures to the platform with licensed original content.
From the past few months, Instagram has started covering production costs for small content producers.
Osofsky said,
“We’re trying to test out this direct contribution model between people and creators, and then we’ll see what makes sense to evolve.”