Facebook (FB) - Get 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.
Letting publishers keep 100% of the revenue is a break in the industry norm. Apple Inc (AAPL) - Get 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.
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