Creators say Instagram is cutting Reels payouts

Creators monetizing Instagram Reels say their payouts have been reduced in recent weeks and target monetization stats have exploded. according to the Financial times† Payments have fallen by as much as 70 percent per view and videos need millions more views before creators are paid.

The Role Playing Bonus ProgramAnnounced in July, it offers financial rewards to creators who post to Reels, Instagram’s TikTok-style short video clone. Payouts ranged from $600 to as much as $35,000 when videos hit a target number of views, but creators expressed confusion about how payments and goals were determined. The bonus program is part of a pledge from Instagram owner Meta to pay creators $1 billion through 2022.

Creators say that changes to the payout system have not been explained by the company. A maker told the Financial times that their personal threshold for getting paid had risen to $35,000 from 58 million views to 359 million views.

Meta told the Financial times that the company was testing Reels bonuses on Instagram and Facebook, which allow payouts to “fluctuate” as pricing models are refined. The company has not immediately made an official statement to The edge.

Other companies like TikTok and Snapchat have introduced similar pools of money that must be cashed out as they compete to keep creators on their platform. And while payouts straight from platforms can be lucrative for a while, so are creators criticized the programs, saying that potential revenue is lower and less predictable than advertising revenue. The Reels payments were primarily intended to reward posting on the TikTok competitor. Lowering those payments could discourage creators from focusing on Instagram unlike TikTok, which other platforms follow when it comes to short video.

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