$Facebook Inc(FB.US)$ said on Wednesday it will spend $1 billion on social media creators by the end of 2022.
What Happened
The investments will include funds to produce content besides payouts and awards for creators who pass a certain milestone and will also be applicable for users on Instagram.
Facebook will launch The Reels Summer bonus on Instagram, a program that will pay creators for creating great Reels content on the photo-based app.
Why It Matters
The Menlo Park, California-based giant is facing intense competition, especially from the China-based TikTok, the first non-Facebook social media app to have surpassed the 3 billion downloads milestone globally, as per SensorTower.
Facebook, which also owns WhatsApp, had earlier this year in an earnings call told investors $Apple Inc(AAPL.US)$ is turning out to be one of the biggest competitors.
Besides TikTok, $Alphabet Inc-CL C(GOOG.US)$$Alphabet Inc-CL A(GOOGL.US)$ YouTube and Apple, Facebook is seeing intense competition from $Snap Inc(SNAP.US)$-owned Snap, $Twitter Inc(TWTR.US)$, $Microsoft Corp(MSFT.US)$-owned LinkedIn and now audio-based startup Clubhouse.
Earlier this month, Instagram's Adam Mosseri had in a Twitter post said it is trying out a host of new features, suggesting that the big changes were in response to TikTok's burgeoning popularity and YouTube's spread'
Price Action: Facebook shares closed 1.27% lower at $347.63 on Wednesday.