Instagram expands test of live-stream tipping feature

Oct. 23, 2020 10:53 AM ETMeta Platforms, Inc. (META)AAPL, GOOG, AMZN, META, GOOGL, BDNCEBy: Jason Aycock, SA News Editor13 Comments
  • Instagram (FB +0.4%) is broadening a test of a feature made to allow creators with smaller influence on its platform to earn from live streams - an appeal to emerging creators.
  • The platform's "Badges" feature lets users tip influencers during a stream on Instagram Live. It's similar to features on other live-stream offerings including Twitch (AMZN -0.8%) and TikTok (BDNCE). After a small spring test, the company is rolling it out for more than 50,000 creators as a beta test.
  • The payments (of $1, $2 or $5) are "a particularly good product for emerging creators," Chief Operating Officer Justin Osofsky tells Business Insider - particularly what are called "nano" or "micro" influencers, those with a sub-Kardashian level of a few thousand or tens of thousands of followers.
  • And it's payment directly for content rather than for advertising a brand or product. One lifestyle coach said that in a week of using the feature she drew $1,000 in earnings.
  • It's definitely an investment-mode offering for Instagram for now: It's not keeping any of the money from Badges at the moment, giving 100% of its share to the creators. "Over time as we scale the products, we do anticipate coming up with the right business model, but a lot of this will be influenced by what we learned in the test."
  • But Apple (AAPL -0.7%) and Google (GOOG +1%, GOOGL +1%) will still be taking their 30% cut, depending on the user's app platform.

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