Adult industry stars have recently announced that they will be moving away from subscription models and changing their platforms to advertise-revenue models. It means that all content creators using these websites will lose all of their subscription fees, and the content will be free of charge for public view – free to people who visit the site.
It comes a couple of months after one of the biggest subscription sites – OnlyFans – announced it was pulling all its porn videos or photos from the site, a decision that was reversed after a couple of days. But rumors have not gone away, and it is widely anticipated that something like that will happen this year.
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That is despite the fact that most OnlyFansartists are sharing adult-only content. Why are these sites looking to sacrifice a big part of their revenue, and why have adult-entertainment stars already made announcements to stop accepting new subscribers? The answer is because of payment processors and conventional banks.
The risk of posting adult contents
The adult-only subject is a pretty risky industry to be involved in. Of all the videos or photos people can sell on the Internet, adult videos and photos are probably one of those with the most legal issues. That is not because it is illegal – that would make it pretty straightforward – but because there are a lot of gray areas when it comes to this business.
There are laws protecting people from revenge porn or making sure videos or photos only include individuals of legal age. Because of this, tons of mainstream payment processors and banks do not want to get involved in things with ties to this industry, including platforms creating adult subjects.
But hesitant processors also have the lowest fees available in the market today, which is why a lot of content creator sites use them regularly. Now, these platforms are finding that it is pretty challenging to keep the relationship with conventional banks and mainstream payment processors going.
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They either need to look for other payment processors that are okay with adult videos or photos, which will ask for higher fees (most content creators cannot afford it since they have not planned for this yet), or they have conventional bank accounts closed frequently.
It means they cannot maintain steady business accounts. It is causing big problems for content creators and sites, and so they are having to take extreme actions to reimagine their industry model by stopping selling or posting adult videos or photos. Instead, they will either need to remove those contents altogether (which most platforms like Fans4Daze tried to do) or offer content for free and make funds in other ways, like through on-site ads.
Why are conventional banks acting now?
The biggest question is: Why now? What made these financial institutions change their minds to the point that platforms were starting to consider pulling their contents or changing their business model? The answer is that conventional banks are not changing their minds – they have never had any type of appetite kind of work, but everything has worked under the table. Sites are the victim of their own success – because their business has become so big, it is now under tons of scrutiny, and platforms are being investigated by their financial partners.
What is the future of this industry?
For sites like fans only to survive the current state, they need to start charging their subscribers a lot more to cover the costs of moving to other payment providers that are happy to work with the adult industry. These payment providers charge a lot more and will usually hold funds for longer because of the risks involved with the adult entertainment industry, and shareholders would not stand for that.
To afford this move, platforms would likely need to change from a twenty percent commission model to a thirty percent commission model. But businesses would need to come together to do this; otherwise, the first platform to switch will just lose all its creators to other platforms.
It is the one that holds out the longest that will benefit from this move, as they can get all the creators who want to move before they switch their rate themselves. But not every creator platform is using these low-risk payment methods at the moment, so there are viable options readily available for people who want to switch now and safeguard their futures as adult creators without paying more.