Recently, Meta launched the Verified service that offers users the famous blue tick on their profile, among other perks. The service costs Rs. 699 monthly in India, $14.99 in the United States, and £9.99 monthly in the United Kingdom. Observe the price of the service in different countries, as Meta could soon launch another subscription-based service that lets users use social media platforms without ads.
Meta Proposes Charging EUR 13 For An Ad-Free Experience
According to a report by the Wall Street Journal, Meta has proposed charging about EUR 13 from European users for an ads-free Instagram and Facebook experience. The company has pitched this to digital competition authorities in Brussels, privacy regulators in Ireland, and the European Union. Meta has come up with this in response to the EU’s Digital Markets Act that prohibits companies from collecting users’ personal data on its services.
While Meta has proposed to charge EUR 13 from mobile users, it is also planning to levy a EUR 10 fee on desktop users of the company’s social media platforms like Facebook and Instagram. The price for an ad-free subscription on desktop is lower than that on smartphones as the company would also have to pay the Google Play and App Store platform fees. Those with more than one account on these platforms might have to pay EUR 6 per month to access them without seeing advertisements.
Will The No-Ads Model Roll Out In Other Countries?
Although the “no ads” plan could initially roll out for European users, as their government is pulling several strings on tech giants, their monopoly, and their control over information, there’s a good chance that it will make its way to the international markets sooner or later. Although the company has initially proposed charging a subscription fee for no-ads to regulators, it could also use the model to generate extra revenue.
We’ve seen several messaging platforms, like Telegram, Snapchat, and Twitter, roll out a subscription-based model. It helps them generate a predictable and constant revenue source other than advertising. And Meta did the same with Meta Verified. However, a look at Meta’s ad revenue (via MacroTrends) reveals that the company hasn’t exactly been at its best, especially for 2022.
In 2020, the ad revenue was $85.965B, which rose to $117.929B in 2021. However, in 2022, the company experienced a dip in revenue, as the numbers stood at $116.609B. Although the EU isn’t among the company’s largest markets, the subscription fee could help compensate for the loss of ad revenue. Nonetheless, the subscription-based model for an ad-free experience isn’t finalized yet.
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