Line cuts the revenue share of sticker creators from 50 to 35%

Line’s DIY sticker marketplace used to be known for its largesse but from February 1, its terms are going to get a lot tighter. Currently, sticker creators get 50 percent of the proceeds from selling their stamps. Next month, that number will go down to 35 percent. The change will be effective worldwide.

Though gaming is Line’s biggest money maker, the messaging app’s popularization of stickers in communication is a major contributor to its viral success. Last year, the company gave regular users the ability to create and sell stickers. The program, titled Line Creator’s Market, attracted many designers, most from Japan, and generated US$30.5 million in the first six months.

IT Media notes that the new revenue sharing policy will result in both Line and sticker creators bearing the cost of appearing on Google Play and the Apple App Store. Those organizations take a 30 percent cut of all sales via apps on their platforms – right now, that is coming squarely out of Line’s half of the revenue. Rather than be left with just 20 percent of every stickers sale, Line will be asking creators to equally share the burden. The result is that both sticker creators and Line will each take 35 percent of sales, while Google Play and Apple Store get their usual 30 percent.

A Line spokesperson tells Tech in Asia that this change is a response to user complaints over an excessively lengthy review process. Line’s new income will go to expanding review operations in order to meet the higher-than-expected demand from creators.

There is a risk that the new terms will dampen that demand. Notably, Line originally announced this change via a blog post, not a widely disseminated press release. Further, it posted on December 26, which was the last working day for most Japanese companies before entering a week-long holiday – a classic maneuver for softening the impact of potentially negative news.

That risk might be small, however. Sticker creators currently have the option of selling their products on commission to individual companies or to boutique firms like PicoCandy. But, if they want to become known – and celebrated – as a designer, then working directly with Line is still an attractive option. Competitors cannot offer access to 170 million monthly active users or international recognition via designer award shows.

This change in revenue-sharing smells of a power play. But maybe that is to be expected. Line has created an essential service for hundreds of millions of people – companies which accomplish that tend to play by their own rules.

See: Chat app Line is now selling user-created stickers. Here are our 7 favorite sets

This post Line cuts the revenue share of sticker creators from 50 to 35% appeared first on Tech in Asia.

Line cuts the revenue share of sticker creators from 50 to 35%