Once again, Snapchat is lowering the reward money creators can get when they make content for Spotlight.
The TikTok rival laid off around 20% of its employees this summer, and the cuts were serious, compared to other tech companies.
Snap stock dropped at least 79% since the beginning of the year; the app has also launched a paid subscription to boost its earnings.
Spotlight, launched in November 2020, lets users can watch short, entertaining videos in a vertically scrollable, similar to TikTok.
Snap spokesperson Farrin Jay affirmed the fund sits at “millions of dollars throughout the year” and said the company is concentrated on rewarding Spotlight creators in more markets.
According to the company’s Q3 earnings report, 300 million+ users watch Spotlight content every month, and the total time spent viewing Spotlight content grew 55% year-over-year.
“As a creator, it is absolutely terrifying to go from making this kind of money to then absolutely nothing. It will last for some time, and then all of a sudden it’s gone — without any kind of notice,” said Nathan Kessel is a Spotlight creator who made between $20,000 to $50,000 a month. In August 2021, he got a six-figure amount.
Creators told the Financial Times that like Snapchat’s Spotlight fund, payments were slashed this spring. In 2020, TikTok itself announced a $1 billion creator fund and later added ad revenue sharing with some creators.
The firm pointed to other ways Snapchat creators can earn a profit. It includes Spotlight Challenges, the Creator Marketplace, Sound Creator Fund, its accelerator program for black creators, and in-app gifting.
CEO Evan Spiegel announced earlier this year that Snapchat was trying ads on the Spotlight.