facebook-shorted-video-creators-thousands-of-dollars-in-ad-revenue

Facebook shorted video creators thousands of dollars in ad revenue

Illustration by William Joel / The Verge

Due to a ‘technical issue’

Britain Lockhart never knows what he’ll find when he scuba dives for treasure. Neither do his viewers on Facebook who tune in for a surprise reveal. His page, Depths of History, has been steadily growing on the social network since he started posting videos there about two years ago. He now has 70,000 followers on his page, which has started generating thousands of dollars a month in ad revenue.

“I really didn’t think it would be that profitable at all, but Facebook has such a variety of users on their interface that don’t even use YouTube, but they’ll be on Facebook,” he says, adding that he’ll post his YouTube videos on Facebook to make ad revenue on both.

His income varies, although he says he’ll typically make between $2,000 and $3,000 per month through Facebook. But in 2021 so far, that income has unexpectedly dried up. The January payout was only $931, leaving him thousands of dollars short. In February, it was even lower, coming in at just $664. He double-checked his creator backend, and the numbers didn’t make sense there, either. Facebook’s revenue estimation tool projected that he should have received $3,397 for January and $1,747.52 for February. When the checks came in, he ended more than $4,000 short

“It was like a slap in the face,” Lockhart says. “I was looking forward to buying more camera gear to increase my business, buying things that could prolong me working with Facebook and me working with YouTube.”

And he’s not the only one who hasn’t been entirely paid out. The Verge spoke with two other Facebook video creators, all of whom say the company shorted them on cash and ignored their requests for help. The creators had no reason to initially question the amount they were paid since Facebook’s estimated revenue tool almost always mirrored their actual payouts. Usually, they’d be short only a couple hundred dollars. But after their revenue seemed off two months in a row, the creators say they looked into the issue. All three say the problems began in January, around the time Facebook transitioned to its new Pages experience and made updates to how creators can monetize.

The sudden change is particularly alarming because of Facebook’s ambiguous approach to revenue-sharing in general. The company’s core business has always been direct, targeted advertising, but Facebook now sees an opportunity in sharing revenue with video creators, along the lines of YouTube or Twitch. Facebook has courted all sorts of creators — gamers, writers, and video hosts — through broader monetization options, like in-stream ads, shopping, and even subscription newsletters. It’s still unclear how many creators are on Facebook, but the strategy seems to be somewhat working. Facebook says there are more than 1 million shops across its app and Instagram, and that from 2019 to 2020, the number of content creators on Facebook earning the equivalent of $10,000 USD per month grew 88 percent, and creators earning $1,000 per month grew 94 percent.

But these creators say Facebook only cares about advertisers, leaving them with no one to turn to when their payments are unexpectedly short. They reached out for help, but the company gave them no feedback on what could be wrong.

After The Verge reached out for comment, however, Facebook said it “resolved a technical issue that prevented a small number of video creators on Facebook from receiving their full in-stream ads payouts.”

“We’re notifying these partners that they’ll receive those remaining in-stream payments during the April payout cycle, and we apologize for any inconvenience,” a spokesperson said in an emailed statement.

It’s good news for the creators getting a rebate but still an alarming precedent — holding thousands of dollars back for months with little explanation or guarantee the same problem won’t pop up again in the future.

Volodymyr Popkov, the creator of the page Painting Inspiration, which demos acrylic paint art tutorials, suggests that Facebook doesn’t value the creators who make the platform thrive. “They have live chat Facebook support for the people who spend money for the ads, who bring [Facebook] their money, but for people who are like us, the creators, they owe us money right now, and they’re not doing anything,” he says.

Facebook estimated that Popkov would get $13,000 in January, he says, but he only received $4,600. In February, he was estimated to receive $29,000 but made only $6,400. He knows the number is just an estimate, but he says he hasn’t seen any change in the numbers of viewers on his videos — at least not enough to explain a $32,000 shortfall. It’s a particular problem because Popkov employs artists to make artwork for the page. His Facebook income serves as payroll for them, along with his revenue from YouTube.

Another creator, Erik Reed, of the Outdoors With Erik page, says he’s owed over $10,000, going off the estimate tools. He specifically joined Facebook because other creators told him the monetization options and engagement levels were worthwhile.

Facebook has a long history of shoddy metrics causing problems for partners. Earlier this month, court documents showed that Facebook provided advertisers with “inflated and misleading” metrics for years on how many people their ads were reaching. The company apparently knew that the reach of these ads was amplified by fake and duplicate accounts, but chose not to delete them. A Facebook spokesperson told The Verge at the time that this reach tool provided only “an estimate,” although Facebook allegedly knew advertisers based decisions around the metric. The company also previously faced a lawsuit that claimed it knowingly overestimated how much video content users watched. Facebook settled the suit in 2019.

The creators who spoke with The Verge have all diversified away from Facebook to avoid being overdependent on one platform; they all run YouTube channels along with their Facebook Pages as well as with other social pages. For the revenue-sharing model to work, Facebook needs creators to stay happy and posting. But increasingly, creators are skeptical of the company’s incentives.

“Working with platforms is hard,” Popkov says. “And you’re not working on your [own] platform, so it’s not like I can trust them.”

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A top Twitch streamer has been live for nearly two weeks straight

On Friday, the Twitch streamer Ludwig slept in. He got up around 11AM PT and lay in bed, chatting with the more than 30,000 viewers of his stream. He’s spent a lot of time in that spot lately — in fact, he’s broadcast dozens of hours of himself curled up in a bright red race car bed since his stream first started.

As of this morning, Sunday, March 28th, Ludwig’s stream has now been live for nearly two weeks straight. His stream started around 2PM PT on Sunday, March 14th, according to The New York Times. The plan was to stream 20 seconds for every new subscription purchased to his channel (subscriptions are $5 per month).

It’s a bit like a telethon — he won’t stop so long as the money kept coming in. “We’re making this like a goddamn vending machine,” Ludwig said just a few hours into the first day of his stream.

The stream has turned into an event for Twitch viewers. Ludwig was already a star on Twitch when the stream began (the unofficial site TwitchTracker ranks him as the 11th most popular English-language channel), and as the days have gone on, he’s become the most subscribed to streamer on the site. Twitch has promoted the stream prominently on its front page and even wished the streamer goodnight.

As he neared the two-week milestone on Saturday, Ludwig had to step away from the stream for the day and invited friends to take over. To make sure the marathon stream didn’t end while he was out, he ran a subscription promotion to run up the timer.

“Subathons” have been happening on Twitch for years, and some have even extended for days in the past. In April, the streamer LosPollosTV went for more than six days, setting what was believed to be a live streaming record at the time. (Other streams have gone for longer since, but without running subathons the entire time.)

As his stream showed no sign of stopping, Ludwig has added some constraints. Subscriptions now add only 10 seconds to the clock. Viewers are limited to purchasing 100 gift subscriptions each. He’s also set a 31 day cap before he’ll sign off no matter what.

It’s not clear if he’ll reach that point. Over the course of this week, subscriptions have been slowing. There were 37 hours left on the clock as of 8AM ET Wednesday morning, but only 22 hours left as of 8AM ET Friday morning. As of this publication, the timer has been hovering just above and then periodically below 12 hours for some time — with subs still coming in to keep the clock relatively static throughout Saturday night and into Sunday morning — and now sits at roughly 11.5 hours.

razer’s-project-hazel-rgb-face-mask-is-becoming-a-real-product

Razer’s Project Hazel RGB Face Mask Is Becoming a Real Product

(Image credit: Razer)

If you’ve ever wished your face mask had more tech, you might not have to wait too much longer. Razer confirmed this week that its RGB-clad, voice-modifying face mask will eventually be a real Razer product you can buy.

Razer first showed off a prototype of Project Hazel during the CES 2021 tech trade show in January. This week, during The Tom’s Hardware Show livestream, Mike Scharnikow, Razer senior marketing manager, confirmed that Razer is moving forward with Project Hazel and its robust set of tech.  

“We’ve had a lot of great…feedback on this from CES as a prototype, and it’s something that we’re actually moving out of the prototype stage on, and out of the concept stage and taking this on the path to productization,” Scharnikow told Tom’s Hardware. 

Scharnikow demoed the mask, which is N95-compliant with active air ventilation. Not all tech concepts come to market. And if they do, they sometimes look different from the prototype. But Razer seems to be moving forward with a lot of the features detailed on the Project Hazel prototype, like a speaker array that uses Razer’s voice amplifier tech to ”take your voice from inside the mask and recreate it out in a very crisp, clear, natural manner to the outside world,” Scharnikow said. There’s also customizable RGB that can provide battery information and a silicone band to seal the mask against your face to prevent glasses from fogging up.

Razer is known for making some of the best gaming keyboards and other PC gaming-focused products, but Scharnikow pointed out that it’s been involved in fighting the COVID-19 pandemic as well, including converting some of its manufacturing facilities to make masks and donating over 1 million masks to medical facilities. 

(Image credit: Razer)

So far we’ve seen Project Hazel in black or white, but if it’s successful we may see additional options. Scharnikow noted that Razer has a history of bringing new color options to its products. 

“First we want to get this out, make sure it’s a great product, make sure it’s something that our fans and our customers love and are really using in the best way possible. And then we can figure out ways to put different colors on it for personalization and the like,” the exec told us. 

Scharnikow couldn’t share a release date for Project Hazel but said those details will be available in “the coming months.” 

Still don’t believe Project Hazel will really hit shelves? Well, Scharnikow isn’t the only one talking about the mask. Razer CEO Min-Liang Tan also told Yahoo Finance this week that Razer is “going to proceed in making it a reality and ship the smart mask.”

Watch the full video above for more from Razer’s appearance on The Tom’s Hardware Show, including what’s up with that RGB toaster

You can catch The Tom’s Hardware Show every Thursday at 3 p.m. ET on YouTube, Facebook, Twitch and as a podcast.