The deal to create a U.S.-exclusive version of TikTok is expected to close this week, and TikTok is ringing in the occasion by announcing some new perks for its American users. At its annual U.S. Creator Summit, the video app revealed some AI-powered tools as well as a new payout structure for its revenue stream it calls Subscriptions.
As on platforms like Twitch and YouTube, TikTok’s Subscriptions are typically purchased by fans, with creators and the platform splitting the resulting earnings. The specifics of that split can be contentious. Twitch, for example, got pushback from streamers after monkeying with its 70/30 payout division (i.e. creators keep 70% of subscription profits).
For TikTok Subscriptions, 70/30 is the baseline split “after fees.” Going forward, creators can chase incentives to push their cut even higher. By reaching milestones like 10,000 followers and 100,000 monthly views, TikTokers can earn bonuses that can push the split as high as 90/10. “Subscription allows TikTok creators to build stronger, more engaged communities while monetizing through a monthly subscription fee for access to exclusive perks like special badges, subscriber-only posts, chat features, and more,” reads a TikTok blog post.
Subscribe to get the latest creator news
The other announcements made at the U.S. Creator Summit touch on a familiar topic: Generative AI. Other platforms have become infamous for their willingness to copy-paste TikTok’s most successful features; now, the ByteDance-owned app is turning the tables by adopting some features that have become common on other parts of the social web.
An AI-powered tool called Smart Split, for example, will automate the process of creating clips from long-form uploads. Clipping has become big business for creators, with brands like OpusClip and MrBeast’s Vyro innovating in that space. TikTok’s entry to the crowded field will reframe long-form videos while captioning and transcribing the resulting short-form clips. Podcasters, eat your hearts out.
The other feature announced at the U.S. Creator Summit, AI Outline, has a lot in common with the creativity aids available through YouTube, Meta, and Adobe. On TikTok, users can enter their ideas into an AI-powered engine, which spits out a full outline that can form the basis of the resulting video.
Some of these features may seem derivative, but the new tools also support TikTok’s priorities up to this point. At the 2024 U.S. Creator Summit, for example, TikTok announced updates to the Creator Rewards program that supports long-form creators. A year later, it has become easier for those creators to add some short-form clips to their respective repertoires.
Subscriptions have been a point of emphasis for TikTok as well, and the app is supporting that push by trying to make its subs the best in the biz. TikTok LIVE is a crowded field, but the promise of a 90/10 split should convince some streamers to increase their activity on that format.
