The global spread of new information technologies has profoundly transformed interactions between firms and their customers, and brings new ways of creating value-in-use for the demand. This evolution strengthens firms interests in regaining control over digital modes of value creation. Hence the growing number of firm-hosted online communities (FHOCs), emerging as a particular setting for value creation, designed and controlled by the host firm. Recent research in strategic management show that the more value-in-use is created for customers through core value propositions, the more economic value can be captured by firms. However, value creation within FHOCs mostly lies in ancillary value propositions, which enhance interactions between firms and customers outside the purchase of goods or services. Our research seeks to understand how this specific value creation within FHOCs can be channeled by firms into value capture. Through a multiple case study we show that the value created within FHOCs can undergo two processes in order to be channeled into value capture: up- and downcycling. These processes are simultaneously used and combined to enhance firms’ performance through value capture. We thus show that value capture with new means of communication is a nonlinear process on which firms can regain control by creating FHOC.