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Meta to charge content creators almost 50% to sell VR content

Meta to charge content creators almost 50% to sell VR content

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Content producers’ Meta fees for Horizon Worlds may be seen as hypocritical, with the social company potentially taking nearly half the value of purchases of virtual items, despite previous complaints about Apple’s 30% App Store fee.

Meta’s “Horizon Worlds” is the company’s first major foray into creating the metaverse platform for owners of Quest VR headsets. However, experiments that enable content creators to earn money selling content in the world may find Meta a subject of criticism, due to its previous anti-Apple comments.

It was revealed on Monday by the edge Meta will charge creators 25% of digital content dedicated to Horizon Worlds. However, this is actually a deduction from the 30% platform fee already charged via the Quest Store, again owned by Meta.

According to Meta VP of Horizon Vivek Sharma, this is a “very competitive price in the market,” adding, “We believe in other platforms’ ability to capture their share.”

With the app expected to expand from VR headsets to mobile devices and other platforms, Sharma’s comments seem to indicate that the 25% will be independent of any fees incurred by the platform. In fact, if it launches on iOS, Apple will receive its standard 30% fee for in-app purchases in the App Store.

The problem arises when you consider how much the Meta can benefit from the content sold through its Quest Store. After the 30% platform fee, 25% is deducted from the remaining 70%, so Meta will get 47.5% of the value of the content sold while the creators will get 52.5%.

The fees and comments could be considered hypocrisy by industry watchers who saw how Facebook fought before rebranding Apple’s 30% fee.

In August 2020, shortly after Epic Games filed a lawsuit against Apple, Facebook app executive Fidji Simo publicly complained about App Store fees, declaring that it hurt small business owners trying to recover from the effects of the COVID-19 pandemic.

Later that same month, Facebook said that Apple rejected a transparency notice that the social network attempted to provide to users, alerting them to the App Store’s 30% fee. Facebook again coined it as an attempt to “help people understand where the money they intend to make for small businesses is going.”

Facebook raised the issue again in June 2021, insisting it wanted to promote “offline transactions” between creators and businesses, again to avoid having to pay Apple’s 30% fee.

While the 47.5% maximum Meta Reduction is high, it’s not as bad as the situation with Roblox. In August, a report from the platform’s developers revealed that content creators are having a hard time making money.

Part of it is because creators get about 35% of the purchase price, while the rest goes to various fees incurred via the Roblox platform, as well as the App Store fees.

For creators working on Horizon Worlds, this will not be the only way to make money from the project. Creators based in the United States will be able to earn $10 million from the Creators Fund, which will reward those who provide the most engaging experiences.

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