Adult content website OnlyFans has something to gloat about: unlike its tech peer Netflix, the company is not experiencing a decline in viewership despite surging consumer inflation.
Business at OnlyFans is booming! The company isn’t seeing a drop in subscriptions like Netflix did in the first quarter even as users contend with accelerating prices— rather the opposite. During the Money 20/20 fintech conference in Amsterdam, OnlyFans CFO Lee Taylor told reporters that the website has grown substantially as of recent, with its employee count rising anywhere from 2% to 3% each month. Globally, the company has more than 1,000 employees.
“We are aware of the cost of living crisis,” said Taylor. “We are building a team in the U.K. to help our creators maximize their earnings.” To further attest to OnlyFans’ growing popularity, the CFO revealed the website paid out $18 million to its content creators in one single day. Comparatively, Netflix saw its viewership slump by 200,000 paid users in the first quarter— its first ever decline in over ten years.
With prices rapidly rising for nearly all goods and services, consumers have been forced to adjust their budgets, with some households foregoing certain streaming services altogether. But, OnlyFans has a “completely different business model” than Netflix explained Taylor, adding that it doesn’t have to compete “in a very saturated market” with major media players such as Amazon Prime and Disney Plus.
Although OnlyFans is typically not associated with traditional fintech companies, the website gained popularity by offering amateur pornographic material creators a platform where they can earn money via subscriptions. However, in 2021, the company decided to adjust its business model and pivot towards content other than porn, banning all sexually explicit content from its website. The move brought on a cascade of backlash from porn creators, ultimately forcing OnlyFans to reverse the ban.
Information for this briefing was found via CNBC. The author has no securities or affiliations related to this organization. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.
