TikTok doles out cold, hard cash

Read time: 4 minutes.

TOGETHER WITH

It’s Friday and Congress is worried about Facebook’s alleged history of wheeling and dealing. In a new letter, 19 reps asked Meta CEO Mark Zuckerberg to explain why uncovered ads showed “piles of pills and powders” and “bricks of cocaine.”

🗞️ Today’s News 🗞️

  • Twitch makes three major changes to Stories 📖

  • TikTok doles out cold, hard cash to creators who invite their friends 🤑

  • The FTC bans viewbotting 🤖

  • Patreon has a “great plan” to navigate App Store fees 💡

STORY TIME

Twitch is making three major changes to Stories

The update: Twitch is shaking up Stories, the Instagram-esque feature it launched in October 2023. The platform has announced three changes, which are designed to strike a balance for streamers and viewers across mobile and desktop. Here’s a rundown of those updates:

1. Video stories are coming to Twitch 🎬
Twitch Stories were originally limited to text and photo posts. By introducing video Stories up to 60 seconds long, Twitch will catch up to rivals like YouTube, TikTok, Snapchat, and Instagram.

2. All Stories will be accessible from desktop 🖥️
Twitch has historically restricted Stories to mobile devices, in large part because it says “most of our streamers create and share stories content in the moment and on-the-go.” Now, however, the platform plans to make Stories “viewable on web” in order to help streamers “reach more of your community where they spend their time.”

  • That change suggests that many viewers tune into their favorite content on desktop—a trend that’s likely related (at least in part) to the clunkiness of Twitch’s mobile interface.

  • In addition to updating Stories, CEO Dan Clancy has said that transforming the mobile app into a “more modern, immersive viewing experience” is a top priority for Twitch. (Until then, however, streamers will still have to rely on Twitch’s current mobile app to record and upload video Stories.)

3. Streamers can now choose expiration dates for Stories ⏱️
Twitch’s final update will allow streamers to select whether they want their Stories to “expire after 1, 12, 24, or 48 hours.” The platform says that change was made with a variety of announcements and content alerts in mind, including “time-sensitive updates” and “‘ICYMI’ clips.”

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At VidSummit, the world’s foremost creator economy experts are only one conversation away. What could that kind of access do for your career?

HEADLINES IN BRIEF 📰

GIFT OF FRIENDSHIP

Hey, creators: TikTok will give you $300 to get your friends to join

The big idea: In an effort to draw new creators and users to its app, TikTok appears to have launched two sets of incentives: a TikTok Shop reward program and a credit system for creators who refer friends to the 1 Minute+ Growth Program.

Program #1: TikTok’s Shop referral program aims to capitalize on the ecommerce hub’s rapid U.S. growth by reeling in users with significant discounts. Those deals (which are located in the Rewards section of the app) give buyers the ability to purchase goods like apparel, electronics, and makeup for one cent plus shipping—if they refer a friend to Shop.

  • The motivation behind that program is tied to TikTok’s stalled user growth. Per Sensor Tower, the number of monthly active TikTok users above the age of 18 increased just 2% year-over-year during the first half of 2024. For comparison, that figure jumped 34% in 2021.

Program #2: TikTok isn’t just aiming to boost its overall user count—it’s also taking aim at a very specific subset of creators. Evidence of a second referral system comes from creator economy expert Lia Haberman, who posted a screenshot showing two reward options: a $300 Promote credit or a $100 Amazon gift card.

  • Creators can choose one of those incentives after referring a friend with at least 10,000 YouTube subscribers or 100,000 Instagram followers to the 1 Minute+ Growth Program. Those follower counts resemble the benchmarks for TikTok’s Creator Rewards Program, a monetization option that encourages video makers to upload clips that are at least one minute long.

  • TikTok’s creator-focused incentive program also feeds into another in-app offering. By providing 3x more value in Promote credit (which provide access to TikTok’s advertising tools), the ByteDance-owned app likely hopes to direct potential consumers towards premium ad products like Pulse Premiere.

NO BOTS ABOUT IT

The FTC’s latest ruling bans “fake social media indicators”—including viewbotting

The ruling: The Federal Trade Commission is cracking down on “fake social media indicators.” While the agency’s latest ruling focuses primarily on banning false reviews and testimonials, a secondary provision takes aim at something more relevant to creators: viewbotting.

Viewbotting—aka the use of automated programs that make it look like streams have more views than they actually do—is already against the TOS of platforms like Twitch, which threatens to “terminate your account if you viewbot.”

Now, however, the FTC is adding a new disincentive to the list. Once its ruling goes into effect on October 13, creators who buy views or followers (especially for commercial gain) won’t just face account terminations—they’ll also be at risk of receiving hefty fines.

  • Of course, some instances of viewbotting will be easier to suss out than others. A creator who buys fake viewers to inflate numbers for a sponsored stream—either to secure more money from that sponsor or attract others—would be in clear violation of the FTC’s ruling.

  • But since the commission’s ban is “limited to situations in which the buyer knew or should have known that the indicators…misrepresent the buyer’s influence or importance for a commercial purpose,” it will be harder to fine creators who viewbot non-sponsored streams (even if they still earn money from ads and subs).

The takeaway: The U.S. government is (slowly) catching up to the creator economy. Prior to its latest ruling, the FTC targeted creators for failing to properly disclose ads—an action that propelled platforms like YouTube and TikTok to roll out labeling tools for sponsored content. Now, FTC chair Lina M. Khan hopes the commission’s ban on viewbotting will help “promote markets that are fair, honest, and competitive.”

WATCH THIS 🎙️

Patreon has a “great plan” to combat rising App Store commissions

Here’s the plan: As Apple amps up its iOS App Store fees, Patreon CEO Jack Conte has vowed to “bend over backwards” to help creators navigate the transition.

Starting November 4, Apple will apply its 30% commission fee to all Patreon transactions within the platform’s iOS app—meaning new patrons can expect higher subscription costs. (For context, Patreon typically charges an 8% commission fee.)

To offset that cost, Conte recommends that creators take one of two courses of action:

  1. Use a new option tool to increase subscription prices within the iOS app and incorporate Apple’s fee.

  2. Or avoid the commission altogether by routing sales through Patreon’s web client or Android app.

Check out Conte’s full video explanation here.

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Today's newsletter is from: Emily Burton, Sam Gutelle, and Josh Cohen. Drew Baldwin helped edit, too. It's a team effort.