Highlights:
- Instagram Adds Ways for Online Video Creators to Earn Money
- The platform will also add advertisements on IGTV and will give out major chunk of revenue to the content creators
On Wednesday, the Facebook owned photo and video sharing social media platform, Instagram confirmed that it will roll out new tools which will help the content creators earn money from the videos they post as it competes for creative talent in an already crowded market for mobile video content.
Instagram, which already facilitates collaborations between the users and businesses who pay to get their product/ service promoted will now let these users the ability to sell “badges” to their fans while they broadcast live videos.
Instagram will also roll out advertisements in IGTV – its video product – and will share 55% of the revenue with the creators of the videos against the ads they run.
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Amongst the personalities on its platform which Instagram has selected to participate in its tests for these tools were Avani Gregg, Salice Rose, and Eitan Bernath who built most of their followings on the social media platform called TikTok which is owned by the Chinese tech giant, ByteDance.
Facebook, in its core application, introduced a similar feature which allows the influencers to capitalise on their huge fan base, which started in 2018, and after this approach gained success it was popularised on Youtube owned by Alphabet, Patreon a subscription platform and Twitch a live streaming platform used by video gamers owned by Amazon.
Justin Osofsky, the Chief Operating Officer (COO) of Instagram was cited by a leading new agency saying, “the badges will be sold at three price points – $0.99 (roughly Rs. 75), $1.99 (roughly Rs. 150) and $4.99 (roughly Rs. 378) – starting with several dozen users next month. The company will not take a portion of the sales at the outset.”
Osofsky said that Instagram is not, yet, planning to offer any subscriptions on the exclusive content.
“Nor was it aiming to lure big-name figures to the platform with licensed original content, he said, although it had started covering production costs for a small number of content producers over the past several months.” 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,”.
