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Automatic TRANSCRIPT

Youtube and instagram are both making tons of money but only one platform pays its creators. How long is that arrangement? GonNa last from American public media. This is marketplace tech demystifying the digital economy. I'm Ali would in recent days. We've started to find out how much money youtube of an instagram are making during. Its recent earnings report alphabet said Youtube made just over fifteen billion dollars in advertising sales in two thousand nineteen in a few days later Sarah frier at Bloomberg broke the news that instagram brought in twenty billion dollars last year and ad sales. That is more than a quarter of facebook's facebook's total revenue by the way but youtube shares its ad revenue with the creators on its platform and INSTAGRAM. Well doesn't but both of them rely on a steady stream of uploads from their users so Howard creators responding and are they GonNa WanNa cut Sarah frier from Bloomberg says they might. I got a lot of messages yesterday from instagram creators that I interviewed who said that. This seems really unfair to them. They didn't expect that. Instagram made this much in revenue. But now that they know they really want a piece of it because they feel like they are creating value for the platform that gets instagram users. Keep coming back do we. You have any idea how important creators are creators and their audience. It really depends on on who the user is because some people use instagram. Just to off the updated on their smaller circle of friends they use it as sort of a facebook alternative. But there's a whole other host people who use instagram specifically to follow although creators who are influencers whether it's in travel or in cocktail making or an embroidery the way people currently make money if they have a following on instagram is through these unofficial relationships they can say. I'm a travel influencer. I'm going to Bali. These hotels will give me free. Stay all these people will come together in an unofficial relationship to pay me for this experience that I can gain following from but is there really any upside for instagram to create those direct relationship. Certainly Youtube has come under fire. You know for incubating controversial creators for for example like could it just be cleaner instagram. Say thanks make your own money on your on your own. I think it's definitely something that they're concerned about instagram. In its its initial conversations with people to allow them to be paid to create content for instagram. TV had a clause in the contract that said that they weren't allowed to talk talk about anything controversial. No politics no no race stuff. Would you maybe be something that instagram. I DIDN'T WANNA put its money behind so there are a lot more cautious about that brand value since instagram has a reputation of being in an aspirational `rational place. So what is happening with their brand maintenance is is. They're trying to make sure that if they get into these close relationships creators. They don't do it in a sloppy way that Sarah frier a senior reporter at Bloomberg Instagram is now officially testing feature that lets creators make money from ads on TV videos however it recently removed about unlinking to Instagram TV videos from the main APP because no one was using it and now for some related links if video is going to be the main way for instagram creators to make make money then the product has a long way to go. We've got a link on our website. Marketplace Tech Dot Org about instagram's efforts to make its TV product. Success took a clear. TV is not the same thing as just posting a video on instagram. It was really created to be a youtube competitor. And that's not really working. Everyone one pretty much hated that button. You would always hit it by accident when you were trying to view stories but there are several bigger problems with the video product. According to business insider story that quotes quotes several creators. It's hard to use. Videos are limited to a minute. People are confused about why it exists and tic Toc basically crushing it like a bug but maybe we have creators can make money off. Id Videos. They'll be more interested in overcoming. All those hurdles. We'll see