Topline
Bloomberg reported that OnlyFans plans to ban sexually explicit content from its platform beginning in October. This is a major shift for the photo-and-video-sharing site, which has been struggling to attract investors.
The OnlyFans logo was placed on a smartphone in New York, U.S.A, on Thursday, June 17, 2021. 2021 Bloomberg Finance LP
The Key Facts
Bloomberg obtained a statement from the U.K-based content subscription company, which stated that it will start banning users posting sexually explicit content. This was the basis of its rapid growth. OnlyFans stated that users will be allowed to upload nude photos or videos as long as they follow company policy. OnlyFans explained that the policy change was made to protect the platform's long-term viability. The company recently began moving away from X-rated content, and has launched a streaming service for non-sexual content. OnlyFans stated that it will share more information in the coming days, and will actively support and guide creators through this transition.
Important Quote
The company stated that it remains committed to the 130 million users and 2 million content creators who have earned more than $5 billion through our platform.
What to Watch
Bloomberg reports that OnlyFans is in discussions to raise additional funding at a valuation exceeding $1 billion. Bloomberg claims the goal is to find backers who will allow the site to evolve into a mainstream media company.
Important Background
OnlyFans was established by Timothy Stokely (a British entrepreneur), his father Guy Stokely and his brother Thomas. According to Forbes, the company was able to benefit from an enormous surge in interest following the Covid-19 pandemic. This made Leonid Radvinsky, its secretive majority shareholder, a billionaire. According to Axios' pitch deck, the company's net revenue of $375m in 2020 will grow to $1.2 million in 2021 and $2.5 billion by 2022. Axios Dan Primack reported that despite the company's momentum, it has not been able to attract investors. He wrote that OnlyFans is a company with rapid growth, and would be able raise large amounts of money in minutes.
Tangent
Many members of Congress have made complaints to Attorney General Merrick Galrland about the content streaming service's child sexual abuse material. They described it as a major marketplace that sells Child Sexual Abuse Material... and solicits sexual activity with minors in America. OnlyFans addressed concerns regarding the sale of explicit content featuring minors and said it takes its obligations very seriously.
Continue reading
The Secret History of OnlyFans Billionaire Owner (Forbes).
OnlyFans is a huge community of users but cannot find investors (Axios).
OnlyFans Seeks New Funding at a Value Above $1 Billion (Bloomberg).
