Popular messaging app Snapchat has altered the way it compensates creators through its Spotlight incentive fund.
A source with knowledge of the situation said Snapchat's TikTok clone Spotlight will now pay its creators millions of dollars annually.
The compensation has now been cut for the second time by Snapchat.
The corporation paid out millions to creators each week in 2021 as opposed to $1 million every day in 2020.
Although the price is being reduced, the source said that Snapchat is compensating more creators in more markets.
Additionally, it is crucial to remember that the minimum payment for each Spotlight will remain at $250.
Over 12,000 producers received $250 million from Snapchat in 2017.
The Creator Marketplace, Sound Creator Fund, its accelerator programme for black creators, Spotlight Challenges, and in-app giving were also mentioned as additional revenue streams for Snapchat producers.
The app experimented with revenue-sharing on Snapchat stories advertisements for Snap Stars in February.
The decision to reduce Spotlight's fund spending was probably taken as a method to increase profits and save money.
CEO Evan Spiegel revealed earlier this year that Snapchat was experimenting with adverts on the Spotlight.
Snapchat reduced its employees by 20% in August.
The platform released its Q3 earnings last week, falling short of analyst revenue forecasts.
Even yet, the business did rather well, bringing in $1.13 billion, a 6% rise for the quarter.
But Snapchat's loss increased to $360 million.
On the plus side, the business reported that Spotlight performed well this quarter and contributed to an increase in the overall amount of time spent watching content.
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