The monetization model for short-form video platforms is undergoing a significant transformation. After years of relying on the traditional "internet traffic" approach—where users consume free content while platforms profit through advertising—TikTok appears poised to introduce a groundbreaking shift in 2023 with its exploration of pay-per-view content.
The End of Free Content? TikTok Tests Paywall Features
Recent reports indicate TikTok is developing a series of new features, most notably a "paywall" system that would require users to pay for access to certain premium short videos. Initial pricing is expected to start at $1 per video, though official details remain undisclosed.
This pay-per-view model isn't entirely novel. Chinese platform Suike (owned by iQiyi) has already experimented with paid subscriptions for creator "super fans," while global platforms like Facebook and Instagram have introduced similar premium content options. These developments suggest an industry-wide movement toward diversified monetization strategies.
However, TikTok's paywall initiative faces significant challenges. Key questions remain about what percentage of content might eventually become paywalled, how this could affect user engagement, and whether creators can produce content compelling enough to justify payment from an audience accustomed to free access.
Creator Fund 2.0: Incentivizing Quality Content
Alongside paywall development, TikTok is preparing to launch an upgraded "Creator Fund 2.0," designed to reward creators with over 100,000 followers for producing high-quality original content. The enhanced fund could debut as early as March 2023.
TikTok's original Creator Fund, established to support original content production, currently requires creators to be at least 18 years old with 10,000+ followers and 100,000+ video views in the past 30 days to qualify for payments. Compensation is calculated based on view counts, engagement metrics, and content compliance with platform guidelines.
The company previously announced a $200 million fund in 2020, with plans to expand this to $1 billion over three years. Industry observers note the Creator Fund has served as an accessible monetization channel for emerging creators, with top performers earning hundreds or even thousands of dollars monthly through the program.
While specifics about Creator Fund 2.0 remain unclear, expectations suggest heightened emphasis on content quality, originality, and audience interaction. This evolution will likely require creators to invest more strategically in content planning and community engagement to stand out in an increasingly competitive environment.
The New TikTok Economy: Content as King
TikTok's dual approach—combining paywalls with enhanced creator incentives—signals a fundamental shift from single-source advertising revenue toward diversified monetization. This transformation presents both opportunities and challenges for content producers.
Successful creators will need to identify viable paid content categories that address unmet audience needs while consistently elevating production quality to qualify for platform incentives. Simultaneously, close monitoring of policy changes will be essential for adapting to this evolving monetization landscape.
As the short-form video market matures, these developments underscore the growing premium placed on exceptional content. Platforms appear increasingly willing to reward creators who can deliver unique value, while audiences may gradually accept paying for premium experiences in what was traditionally a free-content ecosystem.