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Meta CEO Mark Zuckerberg has announced that the company will "hold off on any revenue sharing on Facebook and Instagram until 2024." Interestingly, this is a year later than originally planned.
The Hollywood Reporter said, under this move, Instagram and Facebook will take a commission from offerings like fan subscriptions, paid events, badges and the company's newsletter platform and Substack competitor Bulletin, where creators currently get to keep the entirety of their revenue from those platforms.
Additionally, Instagram and Facebook will expand its Reels bonus program to more creators and allow them to monetize their short-form videos across both platforms, as per reports.
Meanwhile, The Verge reported that Stars, a tipping method on Facebook, will also be available to all eligible creators. It is important to note that Facebook does impose a tax when fans purchase Stars: creators get a penny for each Star they receive, but fans typically purchase them for more.
The company is also testing out a "creator marketplace that will allow brands and creators to interact for sponsorships and other business opportunities -- a service that takes a page directly from TikTok, which offers its own marketplace for marketers and creators."
"We're heading towards a future where more people can do creative work they enjoy, and I want platforms like ours to play a role in making that happen," Zuckerberg wrote in a Tuesday Facebook post announcing the updates for creators. Meta is also expanding its support for NFTs on Instagram, which it began testing on Instagram profiles last month.
In another development, Meta has agreed to change its ad targeting technology and pay $115,000 to settle US government allegations the social media giant allowed discrimination in who saw housing advertisements, authorities said Tuesday.
Under terms of a deal that must still be approved by a court, Meta will use artificial intelligence to make sure ads cross demographics to reach people regardless of age, gender or race.
"We will be introducing a new method designed to make sure the audience that ends up seeing a housing ad more closely reflects the eligible targeted audience for that ad," Meta deputy general counsel Roy Austin said in a post.
The Department of Housing and Urban Development had charged in 2019 that Facebook "unlawfully discriminates based on race, color, national origin, religion, familial status, sex and disability" by restricting who can view housing-related ads.
Facebook has become a multi-billion dollar advertising juggernaut with its large amounts of user data that allow companies to more precisely target certain demographics, but which have also prompted allegations of privacy infringement and discrimination.