Meta's Proposed Subscription Model: Ad-Free Instagram and Facebook for $14/month
Meta Considering $14/Month Subscription for Ad-Free Instagram and Facebook as They Explore New Revenue Streams Beyond Advertising
Sumit Rawat
Meta, the parent company of popular social media platforms Facebook and Instagram, is reportedly considering offering European users the option to subscribe to an ad-free experience for approximately $14 per month, according to a recent report by the Wall Street Journal. The proposed subscription model has been shared with privacy regulators in Ireland, digital competition regulators in Brussels, and EU privacy regulators.
This development comes after Meta was designated as a 'gatekeeper' under the EU's newly enacted Digital Markets Act, a regulatory framework aimed at curbing the power of tech giants. The act prohibits companies from aggregating user data across their various services and introduces additional restrictions. It reflects the EU's ongoing efforts to establish stronger regulations for major technology companies, safeguard the online privacy of European users, and foster competition in an industry largely dominated by US tech giants.
As per the Wall Street Journal's report, Meta intends to offer European users the option of a monthly subscription, priced at approximately 10 euros or $10.46, to access an ad-free version of Facebook and Instagram on desktop devices. For users with multiple accounts, an additional fee of approximately 6 euros per account is anticipated.
On mobile devices, the subscription cost is expected to rise to around 13 euros per month. This increase is attributed to the commissions levied by Apple's and Google's app stores on in-app payments.
Meta has communicated its plans to introduce the subscription service, known as the 'no ads' (SNA) plan, to European users in the coming months. Users will have the choice between continuing to use Facebook and Instagram with personalized ads or opting for an ad-free experience at a monthly cost. However, it remains uncertain whether regulators in Ireland and Brussels will deem Meta's SNA plan compliant with EU regulations.
In response to the report, a spokesperson for Meta stated that the company remains committed to providing free services supported by personalized ads. However, Meta is open to exploring alternative options to align with evolving regulatory requirements.
Meta estimates that during the first half of 2023, Facebook had approximately 258 million monthly users, while Instagram had around 257 million monthly users in Europe.
