TikTok has announced that it will be shutting down its $1 billion Creator Fund on December 16th, 2023. The fund was originally launched in 2020 and paid out to creators from the US, UK, France, and Germany who published content on the platform. Creators based in Italy and Spain are reportedly not affected by the change at the moment.
The Creator Fund has come under fire from creators who say that content would only receive low payouts, even for videos with millions of views. Recently, TikTok announced a new monetization scheme titled the Creativity Program, which requires videos longer than a minute to be eligible but with reported larger payouts. The program will fully replace the original Creator Fund, and enrolled creators can move over to the new program.
Despite the criticism, TikTok has been continuing to try and get creators to stay with the platform, with various plans and schemes that it has put in place to financially reward users. This move is the latest in its ever-evolving plans to get users to stay with the platform in the face of various bans.
The decision aligns with TikTok’s increasing focus on revenue-generating possibilities for creators versus one-time bonus payments. This includes testing features that allow viewers to shop for products featured in videos. While TikTok’s Creator Fund helped entice creators and activity, the company is betting native monetization features tied to its core functionality will be more effective long-term engagement and income drivers.
TikTok’s decision to shut down its Creator Fund is a significant move that will impact creators on the platform. While the fund has come under criticism for its low payouts, it was still a valuable source of income for many creators. The new Creativity Program will provide an alternative for creators looking to monetize their content, but it remains to be seen how successful it will be in replacing the Creator Fund.