Meta is considering introducing a monthly fee of $14 for ad-free subscriptions of Facebook and Instagram in Europe. If European users choose not to pay this fee, they will need to give consent for the platform to track their digital activity for targeted advertising, according to reports from the Wall Street Journal.
The rise of these subscription options could significantly impact the number of users seeing ads on Instagram and Facebook, prompting some advertisers to rethink their strategies and explore alternative platforms. The cost of $14 per month might deter users who have traditionally used these apps for free.
This move towards paid subscriptions is in response to the European Union’s Digital Services Act, scheduled to come into effect on January 1, 2024. These new regulations will restrict platforms’ ability to deliver personalized ads without obtaining prior consent, which could have a substantial impact on companies like Meta that heavily rely on advertising revenue.
While Meta has not yet issued an official statement regarding paid versions of Facebook and Instagram, CEO Mark Zuckerberg hinted at the possibility in 2018 during his appearance before the US Senate. When asked about the potential for ad-free subscriptions on Facebook, he stated, “There will always be a version of Facebook that is free.” Meta COO Sheryl Sandberg also added that they offer various forms of opt-out but not at the highest level, which would be a paid product.
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