OnlyFans, a London-based internet content subscription service established in 2016, has become a platform catering primarily to sex workers producing pornography, alongside other creators such as fitness experts and musicians.
Through monthly subscriptions, tips, and pay-per-view services, creators can monetize user-generated content uploaded on the platform.
Amid the COVID-19 pandemic, OnlyFans saw a surge in popularity, boasting over three million registered creators and 220 million registered users as of May 2023.
Despite hosting various content creators, the platform is widely recognized for its adult content, particularly pornography. Users must be at least 18 years old to sign up for an account on OnlyFans.
Business Model and Revenue Streams
OnlyFans operates on a subscription-based model, where creators can set monthly subscription prices ranging from USD 4.99 to USD 49.99. Creators retain 80 per cent of the subscription revenue, while OnlyFans keeps the remaining 20 per cent, according to reports.
In addition to subscriptions, creators can monetize their content through pay-per-view transactions and fan tips. OnlyFans charges a 20 per cent fee on pay-per-view content and a 10 per cent fee on tips, further contributing to the platform's revenue.
Platform Expansion and User Base
Despite its origins in adult entertainment, OnlyFans has diversified its offerings, attracting creators from various genres and expanding its user base. The platform now caters to over 100 million users worldwide, signifying its evolution beyond its initial niche market.
OnlyFans is currently in discussions to raise new funding at a valuation exceeding USD 1 billion, as per reports.
Financial Highlights
OnlyFans reported a staggering USD 525 million in pre-tax profit for the year 2022. The parent company, Fenix International Limited, declared dividends totaling USD 338 million for the same period.
With creators receiving 80 per cent of the revenue generated on the platform and OnlyFans retaining the remaining 20 per cent, maintaining a balance benefiting both content creators and the company.
OnlyFans saw a substantial 47 per cent year-over-year growth in creators, boasting over 3.1 million individuals producing content on the platform as of November 2022.
OnlyFans has also faced challenges, including pressure from payment processors leading to a temporary ban on adult content in 2021.
