Snap Introduces TikTok-Like 'Spotlight' Video-Sharing Feature
Snap Inc’s (NYSE: SNAP) Snapchat on Monday launched a feature called “Spotlight” in an attempt to compete with other video sharing portals like TikTok and Facebook Inc (NASDAQ: FB)-owned Instagram Reels, according to the Wall Street Journal.
The feature is initially available in the U.S., Canada, Australia, New Zealand, and seven other countries from the European Union, including the United Kingdom and Ireland.
What Happened: Snapchat’s latest feature will allow users to share their content with a broader audience, increasing the chances of making it viral. Videos posted by users will play in a loop on the Spotlight feed. All users can view and swipe through the centralized user-generated Spotlight feed.
Snap allocated an award pool of $1 million a day for users aged above 16 uploading best entertaining content to encourage user engagement in the early phases. Rewards will be determined by an in-house algorithm that uses a prorated mechanism. Views per feed will be compared vis-à-vis the content with the highest views. The awards will be paid daily till the end of 2020.
Why Does It Matter: In July, The Verge reported that TikTok was planning to pay content creators directly through a $200 million reward fund. Facebook too came up with a similar strategy for Instagram Reels where users can monetize their content, according to the Wall Street Journal.
Spotlight will be an ad-free feature in the initial phase, but Snap may introduce ads in the coming months, a company spokesman told CNBC.
He also said that Spotlight would have other differentiating features causing it to stand out among users. There won’t be a public comments section, no political content during the early stages, and posts with misinformation would be blocked.
In mid-October, Snap launched a music feature similar to TikTok, specifically for iOS, along with an exclusive preview of a Justin Beiber and Benny Blanco’s track.
Price Action: SNAP closed 2.19% higher at $45.26 on Monday.
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