Facebook will take a cut of up to 30% on fan subscriptions, beginning on January 1, 2020.
The social network is revealing its plans as part of a broader slate of monetization-related announcements this week at VidCon. The news confirms a TechCrunch report earlier this year that Facebook would be taking a 30% share of subscription revenue.
Facebook first started rolling out fan subscriptions in early 2018, allowing creators to charge their fans $4.99 per month in exchange for access to exclusive content and a fan badge. During this initial testing period, Facebook didn’t keep any of the subscription revenue for itself, allowing creators to take everything, minus the fee collected by Apple and Google on mobile subscriptions.
Director of Media Monetization Kate Orseth told journalists at a briefing last week that Facebook is committed to allowing creators to keep 70% of subscription revenue (minus “applicable taxes and fees”). 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%.
Again, that’s all on mobile, which Orseth said represents the majority of …read more
Thank you Source: Social – TEch crunch