According to a new report from The New York Times, Meta is reportedly exploring the option of paid versions of Facebook and Instagram that would allow EU users to avoid ads and the use of personal data...
According to The New York Times:
"Those who would pay for such subscriptions on Facebook and Instagram would not see ads on the apps. Sources said this could help Meta avoid privacy concerns and other scrutiny from EU regulators by giving users an alternative to the company's advertising services, which rely on analyzing people's data."
This ties in with the EU's evolving Digital Services Act (DSA), soon to come into force, which aims to give users greater control over how their personal data is used. In doing so, users will be able to opt out of personalized feeds based on their in-app activity and algorithmic interpretation of their preferences. There will also be more direct control over what types of information users provide for ad targeting, and if enough people choose to hide their data, it could have a significant impact on Meta's advertising business in the region.
It also builds on Apple's iOS 14 app tracking update, which allows users to opt out of sharing their personal data with any app they use. This has already cost Meta billions in lost ad revenue, and with another blow to incoming data, it may now be time for the company to look at other revenue options.
To be clear, under the announced proposal, Facebook and Instagram would remain free, but users would be able to pay a subscription fee to remove ads if they so choose.
The cost of this option should probably be at least $6 per month, based on Meta's latest revenue report, which shows that Facebook generates $17.88 per quarter from each EU user.
Meta could increase that amount to $8 per month to account for fluctuations, though you also need to consider the impact of a subsequent reduction in total ad impressions and how you mathematically reconcile that with those numbers.
This could cause the price to go even higher to make up for potential losses. But as a baseline, this is roughly the cost that Meta could potentially lose by offering an ad-free version.