An agreement between Facebook and Apple has paved the way for a test of news paywalls on iOS. Starting March 1st, publishers will be able to use their paywalls inside the Facebook app.
Facebook began testing paywalls on Android in October, but was unable to reach an agreement with Apple regarding subscription revenue taxation. However, thanks to this new partnership, publishers will receive 100% of subscription revenue on iOS as well.
Under the previous arrangement, users running out of free articles would hit a paywall and be redirected to Facebook’s app where they could complete the subscription transaction. Publishers would keep 100% of the revenue despite Android usually charging 30% for subscriptions bought inside native apps. However, with this new agreement, when a user runs out of free articles on iOS, the subscription page will load on the publisher’s mobile website.
Purchase process is streamlined and more straightforward: users can subscribe through their preferred publishers’ mobile websites while Facebook doesn’t charge anything for its services in this case. The change also allows customers to keep 100% of customer data.
Facebook made a significant shift by lowering the paywall threshold from ten free articles to five, and it will not be required to pay Apple any fees for these transactions.
This new arrangement is seen as an opportunity to showcase Facebook’s commitment to supporting news publishers on its platform. This move also allows Facebook to diversify its content offerings beyond posts and ads.
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