Meta Putting a (Deep) Stake into the Ground to Monetize the Metaverse

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By Michael Inouye | 2Q 2022 | IN-6539

 

Meta Announces a Hefty 47.5% Fee for Digital Items Sold on its Horizon Worlds Platform

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Many companies have already started exploring ways to monetize the metaverse, but the largest player (Meta) had largely stayed on the sideline acting more like a cheering squad than a mastermind behind a metaverse playbook. Meta finally unveiled its first concerted effort to monetize its Horizon Worlds platform and it comes in the form of a 47.5% fee on virtual asset sales. The 47.5% fee breaks down as a 30% “hardware platform fee” tied to Quest platform (Horizon Worlds is currently a Meta Quest exclusive) and 17.5% for the Meta App Store.

Considering Meta’s criticism of Apple and Google’s mobile platform rates (up to 30%) the 47.5% charge was surprising and drew some criticism. While the initial virtual items may not be Non-Fungible Tokens (NFTs) on a blockchain, the rates charged by NFT marketplaces like OpenSea are also considerably lower in comparison (2.5% transaction fee from the platform and up to 10% creator fee). One key difference is Meta is providing the user platform and in some cases the tools…

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