Instagram, owned by Facebook, has offered financial incentives to TikTok users with millions of followers. This is to encourage them to use a new competing service called “Reels.”
Instagram has made rewarding offers to some of TikTok’s most popular creators to use Reels. The said platform is a new service that Facebook plans to unveil next month. Sources also say that the potential payments for some would be in the hundreds of thousands of dollars.
Company spokeswoman Sarissa Thrower said that Instagram has “approached a diverse range of creators about Reels” in some countries where they rolled out the app for testing. “We remain committed to investing in both our creators and their experience.”
This move is the “most significant sign yet,” according to Fox Business. It also seems Facebook has the intention for Reels to directly compete with ByteDance Ltd.’s TikTok.
Tech Crunch explained that Reels’ design aimsto challenge TikTok’s growing dominance. Reels “allows users to create and post short, 15-second videos set to music or other audio, similar to TikTok. Also like TikTok, Reels offers a set of editing tools,” Tech Crunch said.
Reels will launch in the U.S and some other countries next month.
Fox Business reported that to counter the push by Instagram, TikTok announced a $200 million fund. They aim to use this to help creators on the platform “realize additional earnings that help reward the care and dedication they put into creatively connecting with an audience that’s inspired by their ideas.”