It feels like déjà vu, but Meta is cutting Reels payouts for creators again. It looks like Reels aren’t as lucrative as they thought, so the company has decided to stop offering Reels Play bonus deals to creators, on both Instagram and Facebook.
[Related reading: Instagram reportedly cutting Reels payouts by 70%]
Meta spokesperson told Insider that the company “will be pausing its U.S. Reels Play bonus, a program that paid creators a monthly sum for accumulating views on their Reels.” While there will no new deals or renewal of the existing ones, Meta promises that it will honor existing commitments over the next 30 days.
To remind you, in April 2021, Meta started offering creators up to a $35,000 bonus to create Reels (and stop reposting their TikTok videos to Instagram). But by August 2022, the company reportedly cut Reels payouts by 70%. As PetaPixel notes, short-form videos are harder to monetize because it’s difficult to cram in ads in them. And Meta loves ads!
The latest cut in Reels payouts could be due to Instagram and Facebook restructuring. After all, Adam Mosseri did admit earlier this year that Instagram went too far shoving Reels down our throats. However, I assume that it’s related to the company’s recent mass layoffs and its “new financial objectives.”