Instagram launches content subscription service for influencers and followers
Even with the arrival of Instagram Subscription, paid content should not surpass free creations, according to experts.
Photo Source: Instagram.com
Platforms like OnlyFans and Twitch have already paved the way for content subscription models, but the growing adoption of this trend on Instagram is raising expectations and sparking questions about the future of online content creation and consumption. Instagram Subscriptions, announced in early 2022, is a reflection of this shift.
Owned by Meta, the social network boasts 2 billion active users globally, nearing Facebook's 2.96 billion user count, showcasing its substantial growth in recent years.
In the case of Instagram Subscription, the subscription fee will be set by the creator and can range from $0.99 to $99.
However, the scopes of this model are still limited. The new feature first launched in the US and is now rolling out to eligible creators in Australia, Brazil, Canada, France, Germany, Italy, Japan, Mexico, Spain, and the UK, as explained in the company's blog.
Experts believe that this change will primarily benefit content creators, offering them an additional revenue stream, but it's unlikely to replace free content. Moreover, there's still a long way to go to make this subscription model profitable on the most popular social media platforms.
Subscription-Based Content
Twitch, a streaming platform, has been a pioneer in this format with its affiliate program since 2017. The subscription cost used to be R$ 22.99, but as of July 2021, it starts at a minimum of R$ 7.90.
The service takes 50% of the profits, while streamers get the other 50%. However, these rules can change based on the influencer's size, with more established ones getting up to 70% of the amount.
Some influencers started charging for exclusive Instagram content even before Subscription. They utilized the “Close Friends” feature – sharing Stories only with a select group of contacts – to provide their followers with insider information and monetize it.
Beyond photos and videos, Twitter (now X) also joined the trend by allowing users to offer subscriptions for exclusive content, like long-form texts and lengthy videos. Elon Musk, the owner of the platform, announced this feature on his own Twitter profile. This monetization option will be available in the Twitter settings.
Under this model, content creators will receive the entire subscription fee, except for the fees charged by app stores like Google Play (Android) and App Store (iOS). In the first year, Twitter/X won't take any percentage of the revenue, according to Musk.
This new trend appears to be focused on decentralizing content from production companies and highlighting individual creators.
“With the introduction of subscription-based digital content, the influencer's work is even more enhanced. By creating a subscription for a specific channel, they're creating another line of business and diversifying their revenue stream, amplifying their content.”
Irreversible Path?
Black mentions that charging for content is not a new phenomenon in the digital environment. However, it would be a significant challenge and change if this trend were to completely replace the current logic where most people produce content without directly charging their audience.
“If we had a scenario where everyone charged for content, there wouldn't be enough people to pay for it. It would create a bubble, an entirely unfeasible business model,” evaluates the advertiser.
Campos notes that although subscription-based content is mainly used in adult content platforms like OnlyFans, the trend is expanding to other areas. “I believe this is a trend for the future and will expand to various niches and segments.”
While they believe this innovation will be part of the online landscape, both experts interviewed by Byte Magazine say the subscription model is unlikely to completely replace free content.
“I believe we will see it increasingly present on platforms, but it will never entirely replace existing tools. Just like ‘publis' coexist with organic tip content, I believe the subscription model will become an additional service offered by influencers.”
“There's no scenario where there's more subscription-based content than free content. Many open content platforms already charge subscriptions in hybrid models. It would be an economically impossible scenario.”