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
5 days ago at 05:52 am
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
5 days ago at 06:02 am
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
5 days ago at 06:41 am
Great. Even more cringy videos of girls "dancing" like idiots.
Score: 6 Votes (Like | Disagree)
Avatar
5 days ago at 07:20 am
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
5 days ago at 06:03 am
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
5 days ago at 05:54 am
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 Confirms This Year's iPhone 12 Models Will Be a Little Bit Late

Thursday July 30, 2020 2:34 pm PDT by
During today's earnings call covering the third fiscal quarter of 2020 (second calendar quarter) Apple CFO Luca Maestri confirmed that Apple is expecting to release this year's iPhones later than usual. Maestri said that Apple last year started selling iPhones in late September, but this year, Apple projects supply will be "available a few weeks later." Multiple rumors have suggested that ...

Apple-Acquired Dark Sky Officially Shuts Down Android App

Saturday August 1, 2020 3:43 pm PDT by
Apple in March purchased weather app Dark Sky, and at that time, Dark Sky's developers said that the app's Android version would be discontinued on July 1, 2020. However, instead of shuttering the app on that date, the app's developers announced that the discontinuation would be delayed for another month. Now that it's August, Android users are no longer able to access the app, and...

Apple Watch Series 6 to Feature Blood Oxygen Monitoring Sensor

Friday July 31, 2020 1:56 am PDT by
The Apple Watch Series 6 will add blood oxygen monitoring to its features list when it's launched later this year, according to a new report from DigiTimes. Apple Watch 6 will feature biosensors that can monitor sleeping conditions, detect blood oxygen and measure pulse rates, heartbeats and atrial fibrillation, and will also incorporate MEMS-based accelerometer and gyroscope, all allowing the ...

Just How Small Will the 5.4-Inch iPhone 12 Screen Be? Try It Out for Yourself

Tuesday July 28, 2020 12:57 pm PDT by
As rumors of the iPhone 12 have continued to build over the past few months, the one model that has the most excitement around it is the smallest 5.4" model. The iPhone 12 is believed to be coming in 5.4", 6.7", and 6.1" sizes. Dummy models have shown how much smaller the 5.4" is compared to the rest of the iPhone lineup. The upcoming 5.4" iPhone falls in-between the size of the original...

Top Stories: Try the 5.4-Inch iPhone 12 Display Size, Blockbuster Earnings, Tim Cook at Antitrust Hearing

Saturday August 1, 2020 6:00 am PDT by
Another busy week of Apple news and rumors has wrapped up, with a lot of focus on Tim Cook's appearance at a Congressional antitrust hearing and a blockbuster earnings report. Subscribe to the MacRumors YouTube channel for more videos. We continued to hear rumors about the upcoming iPhone 12 lineup, including a rare admission from Apple that the lineup will launch "a few weeks later" than...

Emails Reveal Why Steve Jobs and Phil Schiller Blocked In-App Purchase of Kindle Books

Friday July 31, 2020 6:25 am PDT by
Internal Apple emails, made public by the House Judiciary Committee's antitrust inquiry, have revealed information about why Apple blocked in-app purchases of Kindle books on iOS devices, reports The Verge. Two sets of emails between Steve Jobs, Phil Schiller, Eddy Cue, and various other senior Apple executives, disclose the exact thinking behind how Apple approached Kindle on iOS. The...

Battery Likely for Upcoming Apple Watch Series 6 Filed in Certification Listings

Saturday August 1, 2020 5:46 am PDT by
A battery likely for the upcoming Apple Watch Series 6 has been filed at the Korea Testing and Research Institute and discovered by a Twitter user @yabhishekhd. Certification for a 1.17Wh battery with a capacity of 303.8mAh was issued on June 23 by the KTR, a Korean regulatory body that approves and tests new hardware ahead of public sale. The battery seems to be destined for a future...

Apple Marks Return of NHL With New 'Hockey Tape' Ad Shot on iPhone 11 Pro

Saturday August 1, 2020 2:33 am PDT by
Apple today marked the return of NHL hockey with a new "Shot on iPhone" ad on its YouTube channel in Canada. Titled "Hockey Tape," the 30-second video features Vegas Golden Knights players Marc-André Fleury and Mark Stone having some on-ice fun with the iPhone 11 Pro, which they attach to the boards, a hockey stick, and a skate with hockey tape. "See the game like never before with Ultra ...

Apple Launches New Gift Card for 'Everything Apple'

Friday July 31, 2020 3:45 am PDT by
Apple has introduced a new single gift card in the U.S. for all things Apple. First spotted by iCulture, the card can be used at the App Store and other online services, but you can also use it to buy products and accessories in the Apple Store. Previously, there were two separate Apple gift cards available: iTunes cards, which can be used for App Store, iTunes Store, and iCloud storage...

Leaker Jon Prosser Claims iPhone 12 and New iPads Will Launch in October

Wednesday July 29, 2020 4:15 pm PDT by
Leaker Jon Prosser, who has a somewhat mixed track record when it comes to predicting Apple's plans, today said that new iPhone 12 models and new iPads will launch in October. Multiple rumors have suggested that some or all of the iPhone 12 models coming this year will see a later than normal launch. Apple typically unveils and releases new iPhones in the month of September, but problems...