Facebook will be taking a 30% cut from Fan Subscriptions as of 2020

Anne Freier

In Mobile Advertising. July 10, 2019

Facebook is poised to earn a 30% cut from its Fan Subscriptions which allow content creators to set a monthly rate for subscribers to access exclusive videos and content.

Fan subscriptions are currently available to creators in Australia, Canada, France, Germany, Italy, Mexico, New Zealand, Spain, UK and the US. Users can subscribe to access exclusive content and support their favourite creators.

The feature has been particularly popular among video creators, which Facebook is trying to lure away from YouTube as it attracts a larger number of video makers.

However, competing with YouTube may be a stretch as Facebook doesn’t offer a similar revenue sharing deal to Google whereby users can monetise their content with ads. YouTube users earn 55% from the ads with Google earning the remainder (45%).

Although Facebook has launched mid-roll video ads and unveiled a premium video ad programme called Showcase earlier this year, it lacks the revenue sharing options its competitor has built an entire business on.

Fan subscriptions were originally unveiled back in March 2018 when the feature was trialled among 10 select creators in the US and UK. Back then, page owners kept the entire subscription fee, but that’s about to change.

As of January 1, 2020, the social network intends to earn a 30% cut from any new subscribers. Existing subscriber numbers won’t be affected by the change.

Facebook said it would also be launching dedicated groups for subscribers and tip jars as part of its Stars programme, which the company is taking another cut from.

To make subscriptions even more enticing, Facebook lets creators limit video ads to formats that are deemed “non-interruptive” including pre-roll and image ads.

Creators are also able to share audiences with advertisers via the Brand Collabs Manager as Facebook seeks to expand its monetisation suite for creative page owners.