Content creators

Meta will charge content creators nearly 50% to sell VR content

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The fees Meta charges to content producers for Horizon Worlds can be seen as hypocritical, with the social enterprise potentially recouping nearly half of the value of virtual item purchases, despite previous complaints about the 30% fee from the l ‘Apple App Store.

Meta’s “Horizon Worlds” is the company’s first major foray into creating a metaverse platform for its Quest VR headset owners. However, experiments aimed at allowing content creators to earn from the sale of content around the world could face criticism on Meta, due to its previous anti-Apple comments.

It was revealed on Monday by The edge that Meta would charge creators a 25% cut of digital content for Horizon Worlds. However, this is actually a reduction in funds that will have already been charged 30% platform fees through the Quest Store, which is again owned by Meta.

According to Horizon de Meta’s Vice President, Vivek Sharma, this is a “fairly competitive rate in the market”, adding “We believe that other platforms can have 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 the fees charged by the platform. Indeed, if it launched on iOS, Apple would receive its standard 30% fee for in-app purchases from the App Store.

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

The fees and comments might be seen as hypocritical by industry watchers who saw how Facebook fought off Apple’s 30% fee before the Meta rebranding.

In August 2020, shortly after Epic Games filed its lawsuit against Apple, Facebook app manager Fiji Simo openly complained about App Store fees, saying it was hurting owners of small businesses trying to recover from the effects of the COVID-19 pandemic.

Later that same month, Facebook said Apple had rejected a transparency notice the social network had tried to provide users, alerting them to a 30% App Store fee. Facebook again touted it as an attempt “to help people understand where their small business money is really 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 maximum Meta reduction of 47.5% is high, it is not as bad as the situation with Roblox. In August, a report from the platform’s developers revealed that content creators were struggling to generate revenue.

Some of it is due to content creators receiving around 35% of the purchase price, with the rest going to various fees incurred through the Roblox platform, as well as App Store fees.

For creators working on Horizon Worlds, this won’t be the only way to make money from the project. US-based creators will be able to take advantage of a $10 million creator fund, which will reward those who produce the most engaging experiences.