Facebook has found a new revenue model: beginning on January 1, 2020, the company will take a cut of up to 30% on fan subscriptions.
For Facebook, revenue has become a concern. Not that the company is not making any money, far from it. But with its ad inventory close to full capacity, Facebook has been seeking new ways to make money.
Launched in early 2018, fan subscriptions have allowed creators to charge their followers $4.99 per month to access exclusive content and earn a special fan badge. Until now, Facebook had not kept any of the subscription revenue, allowing creators to take everything.
However, reports confirmed by TechCrunch show that Facebook is now planning to take a cut, up to 30%, of subscription revenue. This is to be compared to a 5% subscription fee collected by Patreon, a 30% fee collected by YouTube and a 50% fee collected by Twitch.
Image: Facebook
Kate Orseth, Director of Media Monetization, explained that Facebook is committed to allowing creators to keep 70% of subscription revenue. So when the mobile platforms collect their 30% fee on first-year subscriptions, Facebook won’t take a cut. Then, as the platforms lower their share to 15% in the second year, Facebook will take the other 15%. On desktop, Facebook will be able to collect the full 30% from day 1.
Facebook also confirmed that it will only collect its 30% share from new subscribers starting January, and not from subscribers who would have signed up before then.
You might also like
More from Facebook
Meta Is Killing Its Messenger For Apple Watch App
Meta announced it will remove the Messenger for Apple Watch app on May 31 “After May 31st, Messenger won’t be available …
Meta Verified Service Goes Live In The US
Want to get the coveted blue verification checkmark on Facebook and Instagram? If you're in the US, now you can. …
Facebook And Instagram Start Selling Blue Checks With Meta Verified
Meta Verified will give you a blue check badge on both Facebook and Instagram, along with other benefits for $12 …
Meta Brings Back #BuyBlack Friday For A Third Year
Meta is bringing back #BuyBlack Friday for a third consecutive year in North America. Meta emphasized the importance of the Holiday …
Facebook Is Giving You More Controls Over What You See On Your Feed
Facebook is introducing new "show more" and "show less" controls to let you adjust what you want to see on …
Meta Introduces Facebook Reels API, Offering An Option To ‘Share To Reels’
Meta has introduced the Facebook Reels API, a solution allowing developers to build a 'share to reels' option into their …
Facebook Gets Into Delivery With DoorDash Partnership
DoorDash is partnering with Meta to pilot Facebook Marketplace deliveries across multiple cities in the U.S. Drivers will only transport items …
Meta Rolls Out Horizon Worlds In France And Spain
Meta Horizon Worlds, the VR community and game, is now available in France and Spain.
Meta Refreshes Facebook Groups With New Features
Facebook Groups now have an updated invitation system to reduce admin workloads and limit sharing of misinformation.
