Facebook is turning its attention to the creator economy and hoping to enable millions of people to make a living from its family of apps.
But the company wants to encourage offline transactions between developers and companies to avoid Apple’s 30% cut in in-app purchases, Instagram boss Adam Mosseri said on Wednesday.
“When digital transactions take place on iOS, Apple insists that they do 30% of it. There are very few exceptions. For transactions that take place on iOS, we have to follow their rules … But in general, we will look for other ways to help YouTubers make a living and facilitate transactions that take place in other locations, ”Mosseri told CNBC’s “Squawk Box”.
“For example, if we could help brands and makers to check and find each other, they could process these transactions offline. Affiliate marketing is real goods, not digital goods. So we’re going to try to slim ourselves down to the places where creators can actually live stable lives, “he added.
Apple generally rakes 30% on the purchase of software or digital goods from apps sold through the App Store. That would mean that the developers would ultimately have to split the income from the goods sold within the app between themselves, Facebook and Apple. (Facebook didn’t say how much cut it would take, but it will be less than 30%.)
To get around that, Instagram could push YouTubers to connect with brands or other people offline to make money using the iOS operating system. It’s going to be a key issue for the company that has spent the past few years feuding with Apple.
The battle for YouTubers is getting hotter as social media companies woo YouTubers to spend more time on their platforms in order to generate more ad revenue. But creators are currently in control of where to spend their time, so social media companies are increasingly trying to advertise influencers in ways that could ultimately be beneficial to both.
Companies are introducing things like earning commissions on marketing, direct tips, and subscription content.
“If we want to be the best home for YouTubers on the internet, we have to offer a number of these types of monetization products because there is a lot of competition and it is growing fast,” Mosseri said.
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