MetaverseMeta announced some initial plans to allow content creators to monetize its Metaverse platform

Over 40 million people move through the Metaverse every month, and this is growing at a rate that is catching the attention of major global companies. Facebook, for example, has committed to hiring 10,000

people to develop the Metaverse, going so far as to rebrand their company under the new name Meta. Even without accounting for future payment and networking companies, Bloomberg estimates the Metaverse will be valued at US$800 billion by 2024. For brands and businesses looking to capture market

share in this virtual ecosystem, now’s the time to put a plan in place. 

Meta announced some initial plans to allow content creators to monetize its would-be Metaverse platform, Horizon Worlds. Meta's planned revenue share for contributors' creations could add up to nearly 5%. Horizon Worlds is a network of shared 3D spaces that is currently exclusively available on Oculus Quest headsets. (Meta has plans to bring it to mobile, game consoles, and desktop VR in the coming months and years.) The initial trials will allow a “handful of creators,” to sell virtual items and effects, such as fashion accessories or VIP access to virtual worlds. 

The Metaverse Store 

Rather than being a completely separate reality, the Metaverse blurs the line between the virtual and real worlds. Through integrations, brands can use the Metaverse as one additional sales channel by integrating systems that allow customers to buy, invest, and sell in the Metaverse, whether using fiat currency (government-issued money) or cryptocurrency. Through integrating with payment processors, shipping companies, customer relationship management tools, and more, a consumer could enter a virtual mall with a friend, speak to an avatar of a sales representative, browse beautifully arranged shelves of lifelike 3D models, buy a pair of Nike shoes or a Cartier watch, and have the physical item delivered to them in real life. They could even do a walkthrough of a photorealistic presale property, choose the finishing package they like (e.g., hardwood floors, bathroom tile work, etc.), and purchase. In similar cases, when users purchase an item in Horizon Worlds, Meta confirmed to CNBC that it would take a 25% cut- but that's after any amount a hardware platform might take. Right now, that just means Meta's Oculus Store, which takes a 30% cut. So content creators will have to hand over 30% to the Oculus Store (or the applicable percentage for whatever platform stores Horizon Worlds ends up on later, like Google Play), then they'll have to cede 25% of what's left to Horizon Worlds.

A Challenge Experienced by Metaverse

The plans were revealed at a troubling time for the company. In February, Meta had a one-day stock crash that may be the worst of all time, after Facebook lost daily users for the first time in its 18-year history. The fallout from the Facebook Papers, competition from TikTok, Apple’s new app-tracking policy, and a US$10 billion annual splurge on the Metaverse have compounded the concerns. The new ideas for revenue streams may eventually arrest the decline, but the company’s transition from social media to the Metaverse seems some way from paying off.