Facebook is seeking Patreon's Creator Subscription Service business ̵
According to TechCrunch, a "policy document" shows that its fan subscriptions feature, as it has been provided to only a tiny number of developers so far, shows Facebook saving up to 30 percent of its subscription revenue (minus service fees). This is far less generous than Patreon, which requires a five percent cut. In addition, according to TechCrunch, payouts will be further reduced by the "15 to 30 percent tax on Apple and Google taxes for iOS and Android in-app purchases."
Even more disturbing is the fact that Facebook wants to have the rights to all of the authors' works. When signing up for fan subscriptions, TechCrunch wrote:
Facebook also reserves the right to offer free subscriptions that the creators do not compensate. And Facebook requires a "non-exclusive, transferable, sublicensable, royalty-free, worldwide license to use" creator content and "This license will survive even if you no longer use fan subscriptions."
As Verge noted, Facebook noted Previously, the service offered "only 10 creators in the US and the UK," but it began e-mailing Monday with a subscription service for each subscriber of $ 4.99 per month. At the moment, Facebook is not cutting back – probably as part of a plan to get the creators in the door – but due to its conditions, the tech giant can take up to 30 percent of all subscription revenue within 30 days. And while Patreon and other similar services also require licenses to use the works of creators, Verge wrote, this is usually the case for advertising purposes, and licenses usually expire when the service is no longer used.
Facebook told TechCrunch that the license covers the entire content of a creator, such as For example, to create content such as stickers that can be integrated into subscriptions. However, at the end of the day, the license gives Facebook the power to do just about anything it wants with the said content.
According to the creator's reasons, which Gizmodo has provided by Hard Times founder Matt Saincome, Facebook also wishes to award free or discounted trial subscriptions to users in their sole discretion, with the lost revenue not being paid to the user Producers are paid.
Saincome, whose satirical site was affected, among other things, by changes to the Facebook news feed algorithm that killed the Internet traffic to many publishers, said the Verge, he expected that the company would attract creators and then replenish their cut , He added, "It seems they have no idea how much the publishers distrust them. They just burned us! Why on earth would we build another audience there, especially if it involves money? "
Facebook told TechCrunch that it has not set the terms of the service, with 30 percent being more of an upper limit. However, this means that the creators are being asked to earn revenue on their platform without having a clear expectation of how much they will devour later.
Some large platforms make bigger cuts than Patreon, as TechCrunch noted, like YouTube (30 percent, but no) fees) and streaming service Twitch.tv (whopping 50 percent). Facebook also has billions of users already integrated into the walled garden, giving creators the opportunity to reach a much larger audience. However, this seems to be a straightforward deal, especially as it is already difficult for many creatives to settle for Patreon's generous, high-income terms, according to Outline 2017.
Facebook is not the only tech platform that requires this much of the revenue of the creators. Apple recently provided extensive conditions for a planned news subscription service to several major newspapers. In return for selling unlimited subscriptions with several paper-based newspapers to Apple News users at a scheduled price of $ 10 a month for a budget price, Apple reportedly wanted half of its sales and publishers should do the rest, depending on the readership split.
Patreon himself was upset with his community in 2017, announcing changes to their payment model, which were quickly withdrawn under pressure from users.