Instagram Aims to Lure TikTok Creators with Cash

Instagram is offering financial incentives to prominent TikTok users in an attempt to persuade them to use Instagram's upcoming "Reels" feature, reports The Wall Street Journal.

Instagram is seeking to kickstart its new Reels service by making lucrative offers to popular TikTok creators with millions of followers. Set to launch next month, Reels is Instagram's answer to TikTok's short-form video clips.

Incentive payments for some are reported to be in the "hundreds of thousands of dollars," with the highest payouts for creators who commit to posting their videos exclusively to Reels. For creators who refuse to post exclusively to Reels, Instagram has asked that they post their videos to Reels before posting them to other platforms. Popular TikTok creators have been known to be the subject of payments from large companies to use specific songs, wear branded clothing, and promote products in their videos, in order to reach large audiences.

Instagram has "approached a diverse range of creators about Reels in several of the countries where it's currently being tested," a company spokesperson said. "We remain committed to investing in both our creators and their experience." Instagram is offering to cover the costs of producing their videos, and has reportedly used nondisclosure agreements to dissuade creators from sharing the terms of the potential deals.

Last week, TikTok announced a $200 million fund to counter Instagram's push, intended to help creators on the platform to "realize additional earnings that help reward the care and dedication they put into creatively connecting with an audience that's inspired by their ideas."

Following the announcement of Reels earlier this month, news of financial incentives for creators is confirmation that Instagram is gearing up to directly compete with TikTok. In April, YouTube announced "Shorts," a new service that will also replicate the short video format to compete with TikTok.

TikTok, owned by parent company ByteDance, has faced increasing global scrutiny in recent weeks over security and privacy concerns related to its Chinese roots.

Reels is scheduled to launch in the U.S. and several other countries next month, with numerous "exclusive posts" from prominent creators.

Top Rated Comments

(View all)
Avatar
13 weeks ago
The amount of money being spent on these short term dopamine fixes is unbelievable.

I don’t wanna hate and I have nothing against people making money with say YouTube content or blog etc. but especially TicToc and Instagram are literally bad for your brain and for your mental health. This literally hijacks your brain chemistry.

I have two friends who are teachers and they both tell me that today’s kids attention span is much worse than it to be to the point where even reading a few pages in a book is almost impossible for many.

I’m usually not a huge fan of too much government intervention but something must be done.

if you haven’t, you should try out tictoc. It will literally make you head spin with its super short videos and constant novelty.
Score: 19 Votes (Like | Disagree)
Avatar
13 weeks ago
I miss when Instagram was about photography. Now it's all about flaunting your steroid muscles and showing off your shallow luxurious lifestyle paid for by brands. Please stop it!
Score: 18 Votes (Like | Disagree)
Avatar
13 weeks ago
Great. Even more cringy videos of girls "dancing" like idiots.
Score: 6 Votes (Like | Disagree)
Avatar
13 weeks ago
I never understood the lure of TikTok or Instagram.

Then again, I'm still reading books.

I'm going to go tie an onion to my belt now. Which was the style at the time.
Score: 6 Votes (Like | Disagree)
Avatar
13 weeks ago
Past the initial concept - post a photo, like other people’s photos - everything Instagram has added has been clunky, ill-thought, or completely unnecessary. Stories, IGTV, direct messaging, threaded comments and now this... all things other apps do better because they are designed around them, rather than them being frankensteined in after the latest competitive analysis. My time with Instagram is over.
Score: 5 Votes (Like | Disagree)
Avatar
13 weeks ago
I guess this is how my parents felt whenever I loved Pokémon and they didn’t understand it because I feel like them towards TikTok and Instagram.
Score: 4 Votes (Like | Disagree)

Top Stories

Apple References Unreleased 2020 16-Inch MacBook Pro in Boot Camp Update

Monday October 26, 2020 8:42 am PDT by
Last week, Apple released an update for Boot Camp, its utility for running Windows on a Mac. While this update would typically be unremarkable, several of our readers noticed that the release notes reference an unreleased 2020 model of the 16-inch MacBook Pro. While this could easily be a mistake, the 16-inch MacBook Pro is nearly a year old, so it is certainly a worthy candidate for a...

MagSafe Charger Only Charges at Full 15W Speeds With Apple's 20W Power Adapter [Updated]

Monday October 26, 2020 3:38 pm PDT by
Alongside the iPhone 12 and 12 Pro models, Apple introduced a new MagSafe charger that attaches to the magnetic ring in the back of the devices, providing up to 15W of charging power, which is double the speed of the 7.5W Qi-based wireless charging maximum. Apple does not provide a power adapter with the $39 MagSafe charger, requiring users to supply their own USB-C compatible option. Apple...

Google Reportedly Pays Apple $8-12 Billion Per Year to be Default iOS Search Engine

Sunday October 25, 2020 2:59 pm PDT by
The United States Justice Department is targeting a lucrative deal between Apple and Google as part of one of the U.S. government's largest antitrust cases, reports The New York Times. On Tuesday, the Justice Department filed an antitrust lawsuit against Google, claiming the Mountain View-based company used anticompetitive and exclusionary practices in the search and advertising markets to ...

After Mocking Apple, Samsung May Remove Power Adapter From Galaxy S21 Box

Tuesday October 27, 2020 4:29 pm PDT by
Samsung's Galaxy S21, coming in 2021, may not include a power adapter or headphones in the box, according to reports from Korean media sites highlighted by SamMobile. Rumors earlier this year also said that Samsung was considering removing these accessories from future smartphone models, but that didn't stop Samsung from mocking Apple for selling the iPhone 12 models without a power adapter...

Report: Apple Silicon iMac Featuring Desktop Class 'A14T' Chip Coming First Half of 2021

Tuesday October 27, 2020 4:14 am PDT by
The first iMac powered by Apple Silicon is set to arrive in the first half of next year and will feature a desktop class "A14T" chip, according to Chinese-language newspaper The China Times. Codenamed "Mt. Jade," Apple's first custom-made desktop processor will be twinned with its first self-developed GPU, codenamed "Lifuka," both of which are being produced using TSMC's 5-nanometer process, ...

iPhone 12 Six-Foot Drop Test Results: Ceramic Shield More Durable But Not Damage Proof

Monday October 26, 2020 5:00 am PDT by
Apple's new iPhone 12 and iPhone 12 Pro feature a new Ceramic Shield screen that Apple says offers 4x better drop performance. To test that claim, Allstate Protection Plans put the two models through a range of breakability tests and recorded the results. In a face down sidewalk drop test at six feet, the iPhone 12 suffered small cracks and scuffed corners and edges, leaving sharp grooves in ...

Bloomberg: New AirPods and AirPods Pro Coming in 2021, AirPods Studio Delayed, Third HomePod Model Also Possible

Monday October 26, 2020 3:34 am PDT by
Apple plans to update its AirPods line next year with two new models including third-generation AirPods and second-generation AirPods Pro, according to a new report from Bloomberg. The Cupertino, California-based technology giant is working on two new models: third-generation entry-level AirPods and the second version of the AirPods Pro earbuds, according to people familiar with the plans. ...

2020 iPad Air vs. iPad Pro: Hands-On Comparison

Tuesday October 27, 2020 3:03 pm PDT by
Apple announced the new 2020 fourth-generation iPad Air in September, but the new tablets just started shipping out to customers last Friday. We picked one up and thought we'd do a hands-on comparison with the iPad Pro, which was last updated in March, because both tablets are about as powerful and share many similarities. Subscribe to the MacRumors YouTube channel for more videos. Design and ...

iPhone 12 Ceramic Shield Still 'Scratches at Level 6 With Deeper Grooves at Level 7' in Mohs Hardness Test

Wednesday October 28, 2020 7:10 am PDT by
iPhone 12 and iPhone 12 Pro models feature a new Ceramic Shield front cover that is "tougher than any smartphone glass," according to Apple, but the displays on the devices still have similar scratch resistance as previous iPhones based on a new test. Zack Nelson today shared his much-anticipated iPhone 12 Pro durability test on his YouTube channel JerryRigEverything, and based on the Mohs...

Apple Files Mystery 'Personal Computer' With Placeholder 'B2002' Name in Bluetooth Product Database

Tuesday October 27, 2020 12:36 pm PDT by
Last week, a listing appeared in the Bluetooth product database for an Apple product with a placeholder name "B2002" and a model number of "TBD." MacRumors was alerted to the listing by health and fitness tech website MyHealthyApple. The product is filed under the "personal computer" category, which Apple has used for previous Mac and iPad listings in the database, so it is hard to pinpoint...