Only Fans : Do they love us?
There’s a lot of talk about OF going mainstream.
Will they? No idea. BUT lets look at MONEY.
Right now, OF make about, fuck knows. They don’t have to release much information, and it’s all WAY out of date anyway.
Let’s say that they make a comfortable £100M a year profit. Pah, lets call it £200M. (In other numbers, 80% of gross goes to creators, 15% to costs, 5% is their profit).
If you own OF, you can pay that out and pay tax and spend it. You get to play rich. But not Billionaire rich.
Now, look at Apple – taking 30% on in app payments. So, in OF terms, they pay out 70%. OF pays out 80%.
How about iTunes? Artist sells a $10 album, they get about $1. https://investinganswers.com/articles/who-really-profits-your-itunes-downloads OF, would pay out $8.
Indie Film Maker? Amazon Prime pays 4-10c per hour streamed https://variety.com/2019/digital/news/amazon-prime-video-direct-cut-royalty-fees-1203163736/ – so, how does that look with your 100K budget?
So, right now you have a world where MAINSTREAM creators get paid LESS than adult ones!
So, OnlyFans have shown that you can run a very profitable platform and PAY PEOPLE BETTER than the established players.
This gives OF a problem. That model can be copied.
OF KNOW that someone, well funded, WILL copy their business model and apply it to mainstream content, mainstream celebs, influencers, rappers, artists. Allow those people to collect the real value of their work.
OF have the platform that can eat the record industry. Other industries may also be bitten into.
OF also know that they will now spend forever in court fighting crazy cases, because, teens will be teens.
And, I said I’d talk about money.
Let’s say that OF can make a solid £200M a year profits. Taken out, tax paid, say £130M. Nice work if you can get it.
But, I said I’d talk about money. REAL money.
IPO that pitch (by getting a bunch of celebs on board to prove it works) and your £200M looks like it could be £2BN, and that values the company at 100BN, and although you now have a smaller percentage stake, you are worth 30-40BN. And when you want to spend money, you just sell some shares, or even just borrow against them.
But you can’t IPO adult. The markets won’t touch it.
Nutshell – if you own OF you absolutely explore going mainstream because if you can make it work, you become a BILLIONAIRE that way. And if you don’t do it, some other fucker will copy your idea and laugh at you as their superyacht passes your mere gin palace. And they get invited to the White House while you can, get comped at Vegas.
I have no ideas what will happen, but I reckon this story makes sense re what is going on in the OF C-suite.
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