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 Offers Digital Security Course For Journalists And Human Rights Defenders
The Meta Journalism Project and the ICFJ have put together a self-paced 90-minute course and webinars to provide online safety …
Facebook Tests New Desktop Layout Redesign
Reports say that some users are starting to see a new Facebook desktop layout, with all options listed on a …
Meta May Soon Alert You When Your Posts Are Removed By AI
According to reports, Meta is rolling out a system that notifies users when their posts are removed and how.
Meta Is Working On A Universal Speech Translator
Meta's latest AI project seeks to extend advanced translation options to lesser-used languages and to develop a universal speech translator.
Instagram Retires Boomerang And Hyperlapse Standalone Apps
Boomerang and Hyperlapse standalone apps have been removed from app stores as their functionality is already available within Reels.
Meta Demos Voice Controlled Builder Bot That Creates VR Spaces
Meta's latest AI research introduces a prototype technology capable of generating immersive objects through voice commands only.
Facebook Is Removing The Ability To Create Profile Frames
As part of its efforts to continue banning anti-vax messages, Meta is removing the ability for users to create frames.
Facebook Is About To Shut Down Campus
Facebook has informed users via an in-app message that it will be shutting down Campus - its college-focused social network.
Meta Updates Its Company Values
In the aftermath of its major rebranding, Meta is announcing a new company mission formed by a group of values.
