47.5%, Meta wants to dig a gold mine in the Metaverse

Even more ruthless than Apple, the Meta Metaverse app draws nearly 50%

Meta, whose market value has been declining continuously, is mining gold mines in the Metaverse.

Recently, according to a CNBC report, Meta, which actively embraces the Metaverse, allows some creators to sell digital assets including NFTs in its Metaverse social software Horizon Worlds. However, as the operator of the game, Meta will A commission of up to 47.5% is drawn from each transaction.

Commissions are not uncommon on Internet platforms, including commissions for live broadcast sales, e-commerce transactions, and mobile app store commissions. However, the Metaverse is still in its infancy, and commissions are still a rare thing. And Meta, which has long been laid out in the Metaverse field, is eager to open a Pandora’s box of commissions for Metaverse products.

47.5%, Xiao Zha wants to make money?

Meta made an early bet on the virtual reality track, buying Oculus for $2 billion in 2014. However, in the VR industry, which was considered to be in the venting period at the time, it experienced the industry Waterloo within a few years, and many companies failed.

Meta doesn’t care much about changes in the external environment, and regards virtual reality as the future, and Oculus is more like a “ship ticket” to the future that it spent $2 billion to buy.

Inside Meta, there is a dedicated FRL department (Facebook Reality Labs) to promote the development of the VR/AR software and hardware ecosystem. Zuckerberg has said that the company expects to invest 10 billion US dollars in the FRL division in 2021, and this number will continue to grow in the future.

7.5%,

Judging from the financial report, what Xiao Zha said is true. VR cutting-edge technology exploration and ecological layout are very expensive. Meta’s 2021 financial report shows that the FRL department loses over 10 billion US dollars a year, which is a proper big money-burner. However, from the current situation of Meta, the company itself and the market do not seem to allow FRL to continue to burn like this. After so many years of technological exploration, the market and investors must see the corresponding dawn of profitability.

First, with the advent of Apple’s ATT policy last year, it was difficult for Meta, which is based on social software, to accurately obtain user data, which in turn affected the accuracy and cost of advertising.

You know, from the perspective of revenue, Meta is more like an advertising company. In the third quarter of 2021, the proportion of advertising business to total revenue is as high as 97%. Driven by Apple, the future growth of Meta’s advertising business is not clear. .

Second, in addition to being questioned by the public in terms of privacy and security, under the impact of short video platforms such as TikTok, the market’s judgment on the long-term value of Meta is affected. Meta executive Mark Zuckerberg said that TikTok is a very large competitor in the short video space.

After renaming from Facebook to Meta, aggressively embracing the Metaverse didn’t effectively boost Meta’s stock price.At the beginning of February this year, after Meta released the fourth quarter of 2021, its stock price plummeted by 26%. As of April 16, the market value of Meta was 570.5 billion US dollars, which was nearly halved compared with the trillion market value in September last year, and AMA (Apple, Microsoft and Amazon) ) The gap between the three is getting bigger and bigger.

Obviously, Meta’s 47.5% rake ratio is to prove to the market that the platform’s new profit model and that it has made a difference in the Metaverse field, which is regarded as the future development direction.

How much revenue Meta’s move can bring is not the point. The key is to let users and other manufacturers see that Meta has the ability and confidence to draw such a high commission.

The rake ratio is as high as 47.5%, what is the confidence of Meta?

In the current VR field, Meta is one of the few players with strong software and hardware strength, which is due to its long-term exploration and layout.

At the hardware level, in the first quarter of last year, Counterpoint’s report showed that Oculus’ market share was as high as 75%, a 41% increase compared to the first quarter of 2020. IDC data shows that last year, the global AR/VR headset shipments exceeded 10 million, a year-on-year increase of 92.1%, of which Oculus’ share reached 80%.

In the software field, this is also a weak environment for many VR manufacturers. The decline of the VR industry in 2016 is related to the lag in the development of the VR software ecosystem. Meta, which is itself a big software company, not only has popular applications such as Horizon Worlds on Oculus, but also dozens of platform-exclusive games such as Chronos and Dace Central.

7.5%,

The best-selling hardware has paved the way for the development of Oculus’ software ecosystem, attracting more developers to actively participate in it. At the same time, the emergence of high-quality exclusive applications and games on many platforms has made consumers more inclined to choose Oculus products when purchasing VR equipment.

In the VR field, Meta, which holds two trump cards of hardware and software, has enough confidence to set a 47.5% rake ratio. And according to Meta, the 47.5% commission ratio is not set arbitrarily, of which 30% is the hardware platform fee, and the other 17.5% is the software platform fee of Horizon Worlds. As long as we look at the commission rate separately, it is not higher than the 30% commission rate in the Apple App Store.

Another point worth noting is that Ocrlus’ platform app downloads exceeded 10 million last year, more than double that of 2020. More users have become accustomed to downloading and using apps on Oculus and regard it as another A multifunctional entertainment platform.

7.5%,

Judging from Meta’s early deployment of Oculus’ software ecological measures, it wants to learn from Apple’s original APP Store development model and open an application store on “new” hardware in advance to stimulate platform developers with commission incentives. The only difference is that the Metaverse needs to be based on popular virtual reality applications such as Horizon Worlds, and there are more commissioned products, including various digital asset products.

Now taking the road of the software profit model will help Oculus consolidate its position in the industry. The starting price of Oculus Quest 2 is a full $100 lower than the previous generation (the first generation starts at $399). From the product pricing, we can see that Meta grabs the market by reducing the starting price of hardware, and hopes to make money from software services in the future.

Meta wants to lead the trend of rake in the Metaverse?

Meta, which is at the forefront of the industry, is telling other industry players in the form of commissions that the profit model of Metaverse can be more diverse.

On the one hand, various digital assets can be used in Metaverse applications such as Horizon Worlds, and the platform can get a share of the increasingly popular digital asset transactions ; When they are mature, they also take similar measures to mine the “gold mine” in the Metaverse together.

Just as the iPhone does not come with a charging head, once the more influential manufacturers in the industry start, there is a high probability that other players will do similar things. After all, market followers bear much less pressure from public opinion.

The 47.5% rake rate may only be temporary, as Apple spokesman Fred Sainz put it, “Meta is trying to charge these creators much more than other platforms.” The 47.5% rake rate is too high and may be It will fall back to around 30%, in line with the mobile app store.

However, there is a high probability that the door of the Metaverse high-ratio commissions opened by Meta will not be closed. Other manufacturers are in need of such high-ratio commission cases to tell more business stories that convince investors.

Posted by:CoinYuppie,Reprinted with attribution to:https://coinyuppie.com/47-5-meta-wants-to-dig-a-gold-mine-in-the-metaverse/
Coinyuppie is an open information publishing platform, all information provided is not related to the views and positions of coinyuppie, and does not constitute any investment and financial advice. Users are expected to carefully screen and prevent risks.

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