Facebook Wants Up To 30 Percent of Fan Subscriptions Vs Patreon's 5 Percent

Facebook's Patreon-like Fan Subscriptions feature lets people pay a monthly fee for access to a creator's exclusive content. But, as TechCrunch reports, it greatly differs from Patreon in that the social network 'plans to take up to a 30 percent cut of subscription revenue minus fees, compared to 5 percent by Patreon, 30 percent by YouTube which covers fees, and 50 percent by Twitch.' 'Facebook also reserves the right to offer free trials to subscriptions that won't compensate creators,' TechCrunch reports. 'And Facebook demands a 'non-exclusive, transferable, sub-licensable, royalty-free, worldwide license to use' creators' content and 'This license survives even if you stop using Fan Subscriptions.'' From the report: Distrust of Facebook could scare creators away from the platform when combined with its significant revenue share and ability to give away or repurpose creators' content. Facebook has consistently shown that it puts what it thinks users want and its own interests above those of partners. It cut off game developers from viral channels, inadequately warned Page owners their reach with drop over time, decimated referral traffic to news publishers, and most recently banished video makers from the feed. If Facebook wants to win creators' trust and the engagement of their biggest fans, it may need a more competitive offering with larger limits on its power.

Facebook began testing Fan Subscriptions a year to give creators a financial alternative to maximizing ad views after watching the rise of Patreon which now has 3 million patrons who'll pay 100,000 artists, comedians, models, and makers over $500 million this year. This month Facebook expanded the test to the UK, Spain, Germany, and Portugal to allow users to pay $4.99 per month to a creator for exclusive content, live videos, and a profile badge that highlights them as a subscriber. While Twitch owns gamers, YouTube rules amongst videographers, and Patreon is a favorite with odd-ball creators, Facebook may see an opportunity to popularize Fan Subscriptions internationally and turn mainstream consumers into paid supporters. The terms for Fan Subscriptions are not publicly available, and only visible on Facebook's site to Pages it's invited to test the feature. But TechCrunch has published the full policy document [in their report].

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