Twitter Inc (NYSE:TWTR) Giving Periscope Creators A Chance To Make Money

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Twitter Inc (NYSE:TWTR) Giving Periscope Creators A Chance To Make Money

Twitter Inc (NYSE:TWTR) has launched a new way for people who create their videos in Periscope to start earning money from their efforts. In an announcement on Wednesday, the social media giant said Periscope will now start offering what it referred to as “super hearts,”, used here to mean offering views with a way to tip the creator of the periscope. This will be done by sending the Periscope creator a virtual heart which the viewer pays for in real cash.

The creator will be allowed to cash out the digital goodies once they accumulate $175 in these super hearts. According to Twitter, the creators will be entitled to 70% of the actual value of the virtual goods. The remaining 30% will be spent on payment processing and other fees.

It however remains uncertain if any of the fees deducted will go to Twitter but according to sources privy to the matter, the company says this won’t be a big revenue channel.

Ultimately, Twitter managed to shutter Vine after it failed to reward its creators who started bringing their audiences to other forums like YouTube and Instagram.

Twitter is hopefully avoiding a similar case with Periscope although it remains unclear on the number of creators who use the service on a daily and monthly basis. Probably, now that Twitter has opened a way to earn from broadcasting on Periscope, it will attract more creators compared to other options like Facebook live.

The use of virtual goods is a popular business program used by many livestreaming apps especially in Asia. Twitter could have opted for instant payment of creators of live content but this is tricky considering the fact there are numerous opportunities for people to broadcast explicit content to earn from it. Twitter however seem to have devised a solution for this.  For a creator to receive super hearts, they will have to go through a content review process in addition to filling out tax forms. A creator risks being removed from Periscope if found to have violated any community guidelines set out by the company.