In the past few months, Instagram has been rolling out a subscription feature to select content creators on their platform in the United States. Although the current list of creators is quite small, Meta plans on expanding this feature soon. At price points as low as 99 cents, creators will be able to select the exact price of their subscription, if its under $99.99 and above the $0.99 margin.
What Does this mean for IG Creators?
Having a monthly subscription is a massive source of income for content creators. Just look at the gaming space of the internet. For instance, look at a company such as Twitch, now owned by Amazon. All their partnered and affiliated content creators benefit from a monthly subscription option. This subscription is as low as $4.99, and as high as $24.99 a month. It is widely known that creators on the platform receive 50% if they are affiliated, and 70% if partnered. Since Instagram is still rolling the feature out to a majority of the world, creators currently get 100% of subscriptions until at least 2023 according to Meta. This is a massive opportunity for creators on Instagram, as it allows some full-time creators to a serious step up when it comes to the quality of their content!
What Does This Mean for my Business?
Subscribing to a content creator for a business expense in the future may become a legitimate expense for marketing your business. For instance, subscribing to a content creator on Instagram will provide your Instagram account with a subscriber badge. This will immediately make your Instagram account more noticeable to the content creator, either through direct messages, or comments. Reaching out to a content creator on Instagram may become significantly easier with subscriptions, and quite possibly make yourself slightly more convincing. On the internet, product placement has never been easier, and through content creators, it will only get easier. Make you and your business stand out when reaching out to these content creators. Subscribe, and reap the benefits.
What Does This Mean for Meta?
In case you are not aware, Meta is the parent company of Facebook, as well as Instagram, just to name a few platforms they own. Meta has already said that they do not plan on taking a cut of Instagram subscriptions until at least 2023. However, I could easily see meta taking up to half of the subscription money for themselves from Content Creators to invest back in their company. This would not only still be massively important to Meta, but for the creator as well since they weren’t seeing this income prior. To further touch on this, Meta already has the subscription model out to a global audience on Facebook. Therefore, they know this kind of payment model for creators is effective and works. This ultimately part of their grand $1 billion investment in their creators, and I fully expect Meta to see a return on that $1 billion because of this in a couple of years time. See the Meta article here.
In January of 2022, Meta announced that they were introducing the popular Facebook feature, content creator subscriptions, to select creators on their other platform, Instagram. This was a massive step forward for Instagram content creators, as this opens a lot of potential income for the average full-time creator. Allowing the user to set a price point between just 99 cents and 100 dollars/month, Meta plans on supporting their creators to unlock their full potential. With other competitors such as Twitch (now owned by Amazon) doing the subscription model for years, Meta decided it was finally time in 2021 for Facebook to test it out. With Instagram now receiving the feature, content creators on the platform will be able to improve their content drastically.
The introduction of the subscription model could also mean big things for the businesses out there and product placement. It now suddenly becomes easier to reach out to eligible content creators if you are subscribed to them. This is due to being flagged by Instagram as being a subscriber. Creators on their end can also filter direct messages as well as comments to be subscriber only, or filter for subscribers. This may allow your business to be seen by the content creator more easily. Lastly, the subscription model is important for Meta as well, as this could mean a large profit for them as well, depending on the cut they take from subscriptions beginning in 2023. After all, take too large a cut, and receive bad PR.
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