Facebook Creator Subscriptions: Bypassing Apple Fees
Meta Circumvents Apple’s Fees with New Creator Links
Formerly known as Facebook, Meta has recently unveiled a strategy to bypass Apple’s well-known platform fees. This development represents the latest escalation in a continuing dispute between prominent software companies and the iOS developer.
In a post on Wednesday, Meta’s CEO, Mark Zuckerberg, announced that the social media network will provide qualifying creators with unique custom links. These links will facilitate direct payment acceptance, effectively avoiding Apple’s contentious 30% commission.
Focus on Creator Monetization
“Our focus, as we develop the metaverse, is on enabling creators to profit from their contributions,” Zuckerberg stated. “The 30% fees levied by Apple on transactions hinder this, so we are updating our Subscriptions product to allow creators to retain a larger portion of their earnings.”
Creators who manage Facebook pages meeting the subscription eligibility criteria can now distribute these new promotional links via text message or email. This directs their audience to a payment gateway managed through Facebook Pay, Meta’s own payment infrastructure.
Creator Incentives and Subscription Details
Alongside this announcement, Facebook revealed a new bonus initiative. Creators will receive between $5 and $20 for each new subscriber acquired through the program, continuing until the year's end. This forms part of the previously declared $1 billion creator program.
Facebook’s subscription service, resembling Patreon, grants administrators of popular Facebook pages access to specialized monetization tools for recurring monthly payments.
Currently, eligibility necessitates a page with at least 10,000 followers, or over 250 returning viewers, alongside either 50,000 post engagements or 180,000 minutes viewed.
Future Fees and Apple’s Commission
Meta has confirmed it will not impose any fees on creator payments throughout 2023. However, considering its assertive entry into this market, the company likely intends to capitalize on the expanding creator economy after offering an initial period without charges.
The company had initially considered implementing a 30% commission on subscriber revenue, but has since retracted those plans – at least for the time being.
Apple has historically imposed a standard 30% fee on all paid applications and in-app purchases made through iOS, generating substantial revenue for the company.
Late last year, Apple offered some relief to smaller developers, reducing the fee to 15% for those earning less than $1 million annually.
Legal Battles and Developer Concerns
Apple’s app store fees are a significant point of contention for numerous large software developers. Last year, Epic Games, the creator of Fortnite, initiated legal action against Apple over these in-app fees, portraying Epic as a champion for developers.
Meta, currently valued at $923 billion, is adopting a similar stance in this new dispute concerning creator payments with Apple.
In September, a California judge ruled in the Epic Games v. Apple case that Apple could no longer prevent developers from directing users to alternative payment options, bypassing Apple’s substantial fees. This ruling paved the way for Meta’s new solution.
Apple has appealed this ruling and requested a stay on the judge’s injunction last month.
Past Conflicts and Privacy Concerns
This workaround for creator payments is not Meta’s first conflict with Apple, nor is it the first instance where Meta has positioned itself as an advocate for the average user.
The company strongly objected to new anti-tracking features introduced in iOS 14, designed to enhance user privacy. Meta responded by publishing full-page advertisements in major national newspapers protesting these changes, ostensibly on behalf of small businesses, rather than its own interests.
