Paid versions of Facebook and Instagram in Europe
- META plans to charge European users US$10.6 for desktop access and US$13.8 for mobile access per month for ad-free Instagram and Facebook access.
- The new plan is to comply with EU regulations which said that META would need consent before offering its users personalized ads.
- Europe contributed 23% of the company’s ad revenue in 3Q23 and the subscription plan could reshape META’s revenue model.
META announced that it will start charging Facebook and Instagram users in Europe for ad-free subscriptions on Facebook and Instagram starting from November 2023. This subscription plan is aimed at users who opt not to grant META permission to utilize their personal data for targeted advertising. These premium offerings would guarantee an ad-free environment in compliance with EU regulations and court rulings aimed at restraining META’s data-collection practices. Facebook and Instagram users in the European Union, the European Economic Area – Iceland, Liechtenstein and Norway and Switzerland will be offered ad-free subscriptions between €9.99 (US$10.58) per month for ad-free desktop access or €12.99 (US$13.76) per month for iOS and Android access. Until March 2024, the initial subscription covers all linked accounts in a user’s Accounts Center. However, beginning March 2024, an additional fee of €6 (US$6.36) per month on the web and €8 (US$8.48) per month on iOS and Android will apply for each additional account listed in a user’s Account Center. The high prices for mobile access reflect commissions charged by Apple and Google app stores on in-app payments. Advertisers will still run personalized advertisements through META’s ad-supported service on Facebook and Instagram to users who choose to continue to receive a free, ad-supported service. While people subscribed for ad free, their information will not be used for ads.
Europe contributed 23% of the company’s ad revenue in 3Q23 and this move could reshape META’s revenue model. Facebook’s ARPU in Europe stood at US$17.88 in 2Q23 (US$19.04 in 3Q23) and META highlighted that the new ad-plan would offset the revenue loss under the new regulations. However, offering a choice between a free, ad-supported plan and an ad-free paid subscription might lead to users opting for the former, helping META to comply with the regulations without affecting its ad business.