Skip to main content

Facebook (FB) - Get Meta Platforms Inc. Class A Report is preparing to launch a subscription tool as part of its Instant Articles initiative that will help publishers gain new readers, but the social media giant doesn't expect a cut of the revenue from publishers' transactions, Recode reported.

Instant Articles hosts news pieces on Facebook's mobile app. Instead of operating a subscription service itself to get users on the Instant Articles, Facebook is said to be implementing a paywall after 10 articles on the app. Once a user hits 10 pieces from a particular publisher in a month, Facebook will send him or her to the publisher's site to sign up for a subscription.

"Quality journalism costs money to produce, and we want to make sure it can thrive on Facebook," said Facebook's news partnerships leader Campbell Brown.

Scroll to Continue

TheStreet Recommends

Letting publishers keep 100% of the revenue is a break in the industry norm. Apple Inc (AAPL) - Get Apple Inc. Report sells digital subscriptions through its App Store and Apple News products but takes up to 30% of the monthly profit from those transactions.

Facebook stock traded up 3% late Thursday afternoon.

Facebook and Apple are holdings in Jim Cramer's Action Alerts PLUS Charitable Trust Portfolio. Want to be alerted before Cramer buys or sells FB and AAPL? Learn more now.

More of What's Trending on TheStreet: