According to sources familiar with the matter, Meta Platforms (META.O) is considering the introduction of subscription plans that offer an ad-free experience to users on Instagram and Facebook in Europe.
Among various pricing options discussed, one source suggested that a 10 euro ($10.49) per month plan appears to be the most viable, while another source mentioned that this initiative is anticipated to be launched in the forthcoming months.
This move by Meta is in response to European Union regulations that pose challenges to its capacity to personalize advertisements for users without explicit consent. These regulations have the potential to impact Meta’s primary source of revenue, prompting the company to explore subscription-based alternatives.
Providing users with the option to choose between a free, ad-supported plan and a paid subscription could encourage more users to select the free plan, assisting Meta in adhering to regulations while safeguarding its advertising business.
In comparison, Netflix’s streaming subscription offers a basic plan at 7.99 euros, while Alphabet’s (GOOGL.O) YouTube Premium is priced around 12 euros, and Spotify’s (SPOT.N) Premium service costs approximately 11 euros.
For mobile devices, the cost for a single account would increase to approximately 13 euros due to the inclusion of commissions imposed by Apple’s and Google’s app stores, as noted by the second source.
Earlier this year, the social media company faced a 390 million euro fine from Ireland’s Data Privacy Commissioner. It was also instructed not to rely on the “contract” legal basis for delivering ads to users based on their online activities.
Meta later stated its intention to seek user consent within the EU before permitting businesses to target ads, as a measure to address the changing regulatory landscape in the region.
A spokesperson for Meta expressed the company’s commitment to “free services supported by personalized ads” while simultaneously exploring strategies to ensure compliance with evolving regulatory mandates.
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