Instagram rolls out tools to help users earn money via online videos

Instagram, the social networking service owned by Facebook, has reportedly rolled out new tools for users in the mobile video content market. The tools will enable users to earn money by posting online videos as the service competes for creative talent in this increasingly crowded market.

The service has already facilitated collaborations between popular users and businesses who get paid for promoting products on their accounts. Through the recently introduced tools, it will start enabling some users to market ‘badges’ while broadcasting live videos to the fans. The service will also introduce ads in its video product, IGTV and offer 55% of the revenue to the video creators.

In the early trial process of the tools, the service selected Salice Rose, Eitan Bernath, Avani Gregg, and other personalities who have built much of their following on TikTok, a social video phenomenon owned by ByteDance, a Chinese tech giant.

The core app of Facebook has introduced similar features that allow influencers to capitalize on loyal fan bases from 2018. This happened along the heels of the approach being popularized on the subscription platform ‘Patreon’, Alphabet’s YouTube, as well as video game live streaming service ‘Twitch’, owned by Amazon.

According to the Chief Operating Officer of Instagram, Justin Osofsky, the badges will be made available and sold at 3 price points, i.e. - $0.99, $1.99, & $4.99 to multiple users from June. At the outset, the service will not claim a part of the sales. Mr. Osofsky added that the service has not yet planned to provide subscriptions for the exclusive content. Additionally, it was not aiming to attract various figures to the platform with the licensed original content. However, it had started to cover the production costs for some content producers in the past months. He further added that they are focusing on testing the direct contribution model between creators and people and uncovering an area to evolve.

Source credit:https://us.fashionnetwork.com/news/Instagram-adds-ways-for-online-video-stars-to-earn-money,1219237.html