Snap Is Spending $1 Million a Day to Chase TikTok

Snap (NYSE: SNAP) recently launched Spotlight, a new platform for user-created videos within Snapchat, in nearly a dozen countries. The new feature will curate the "most entertaining" Snaps from Snapchat users and broadcast them to viewers based on their preferences and favorite videos.

To encourage users to create interesting content, Snap will distribute over $1 million every day to top content creators through the end of the year. This seems like a clear bid to steal the spotlight from ByteDance's TikTok, but will it pull users away from the popular short video platform?

Snapchat and TikTok both target Gen Z users, but the two platforms generally weren't considered direct competitors. Snapchat mainly hosts private ephemeral conversations and stories, while TikTok's platform encourages users to share public videos in hopes of going viral.

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Source Fool.com