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Meta Plans To Charge Up To $14/Month For Ad-Free Instagram In Europe
Shandy Gonzalez
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Who and What is Meta?
Meta Platforms, originally known as Facebook, was founded by Mark Zuckerberg and several of his peers from Harvard University in 2004.
It started as an exclusive social media between Harvard student to then anyone around the world with an email could have it.
In 2012, Facebook went public and was valued with an initial public offering (IPO) of 100 billion dollars.
Facebook then bought Instagram in 2012 and WhatsApp in 2014.
In October 2021, Facebook announced that it was rebranding as Meta Platforms, as part of its new focus on building the metaverse.
including Facebook, Instagram, WhatsApp, and Oculus VR.
WHO & WHAT IS META?
Meta Platforms, originally was known as Facebook, was founded by Mark Zuckerberg and several of his peers from Harvard University in 2004.
It started as an exclusive social media between Harvard student, but eventually expanded to other universities and high schoolers in the U.S./Canada, then to anyone around the world with an email could have it.
In 2012, Facebook went public and was valued with an initial public offering (IPO) of 100 billion dollars.
Facebook then bought Instagram in 2012 and WhatsApp in 2014. This helped the company expand its reach and capabilities and avoiding more competition from social media.
Facebook announced in October 2021 that it was rebranding its name to Meta Platforms to be part of its new goal of achieving the metaverse. The change was meant to represent the company's new focus on building a more interactive, digital experience. Since then, the business has kept up its significant investment in virtual developments and augmented reality technologies to advance the metaverse, a.k.a Meta for short.
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Meta Plans To Charge Up To $14/Month For Ad-Free Instagram In the European Union (EU)
In the European Union there are 27 countries (Austria, France, Spain, Sweden, Germany, Netherlands, Bulgaria , Greece, Poland, Croatia, Hungary, Portugal, Cyprus, Ireland, Romania, Czech Republic, Italy, Slovakia, Denmark, Latvia, Slovenia, Estonia, Lithuania, Malta, Belgium, Finland, Luxembourg).
Meta is debating a proposal to charge those in the European Union, who would like to continue to use Instagram and Facebook a monthly subscription (without Ads).
Facebook will be close to $17 per month and $14 per month for Instagram.
Meta's policy is in reaction to privacy of the EU regulators' demands that the business obtain users' permission before advertising in their feeds.
Meta Plans To Charge Up To $14/Month For Ad-Free Instagram In Europe
In the European Union there are 27 countries (Austria, France, Spain, Sweden, Germany, Netherlands, Bulgaria, Greece, Poland, Croatia, Hungary, Portugal, Cyprus, Ireland, Romania, Czech Republic, Italy, Slovakia, Denmark, Latvia, Slovenia, Estonia, Lithuania, Malta, Belgium, Finland, Luxembourg)
The Wall Street Journal reported on Monday (October 2nd of 2023), that Meta is debating a proposal to charge those in the European Union, who would like to continue to use Instagram and Facebook a monthly subscription to access the social media networks without ADs.
According to the claim given to the European regulators recently, the price for Facebook will be close to $17 per month and $14 per month for Instagram.
Meta's policy is in reaction to privacy of the EU regulators' demands that the business obtain users' permission before advertising in their feeds
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Continued…
The EU regulators think it is excessively.
Meta will begin implementing the "subscription no ads," or SNA, plan in the upcoming months.
It is unlikely that Meta would adopt SNA in the U.S. because the privacy regulations do not apply here.
In February 2023, Mark Zuckerberg announced a paid verification subscription called "Meta Verified" for their user in the United States, Australia, and New Zealand, who are at least 18 years old. Users need to use their real names that match their government ID.
Since it is unclear whether EU regulators will recommend a new proposal with EU rules, this suggested subscription arrangement may potentially change.
CONTINUED
The EU regulators are worried that the prices in Meta's proposal are excessively high for most consumers.
Meta has discussed its plan with privacy officials in Ireland, digital trade regulators in Brussels, and other EU privacy regulator states. The corporation will begin implementing the "subscription no ads," or SNA, plan in the upcoming months.
It is unlikely that Meta would adopt SNA in the U.S. because the privacy regulations do not apply here. In February 2023, Mark Zuckerberg announced a paid verification subscription called "Meta Verified" for their user in the United States, Australia, and New Zealand, who are at least 18 years old. Users need to use their real names that match their government ID.
Since it is unclear whether EU regulators will recommend a new proposal with EU rules, this suggested subscription arrangement may potentially change.
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Why?
The business model of Meta heavily depends on showing advertisements on users feed, but over the past few years, the pressure has been growing on this strategy.
In 2021, Apple made it possible for users to reject ad-tracking, a shift that Meta estimated would cost the company $10 billion in lost revenue.
The use of the membership is the most recent example of how Europe's strict regulatory framework is pressuring digital firms to significantly alter their business models.
European authorities fined Meta $1.3 billion in May for violation of data privacy laws, and the business also delayed the introduction of its Twitter rival Threads in Europe due to uncertainty in regulations.
But they “continue to investigate options to make sure [they] comply with evolving regulatory requirements."
Why?
The business model of Meta heavily depends on showing advertisements on users feed, but over the past few years, the pressure has been growing on this strategy.
In 2021, Apple made it possible for users to reject ad-tracking, which is a shift that Meta estimated would cost the company $10 billion in lost revenue.
The use of the membership is the most recent example of how Europe's strict regulatory framework is pressuring digital firms to significantly alter their business models.
European authorities fined Meta $1.3 billion in May for violation of data privacy laws, and the business also delayed the introduction of its Twitter rival Threads in Europe due to uncertainty in regulations.
But they “continue to investigate options to make sure [they] comply with evolving regulatory requirements."
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My Thoughts
I found this article super interesting since social media is a huge deal in the 21st century and technology will continue to advance, therefore there will be many other brilliant ideas to be announced. A lot of people mention how Facebook is dying out since it was a big deal for those part of the Baby Bloomers, Generation X, and Millennials. To then have Instagram the next big thing for the generation z and WhatsApp became a huge deal all around the world. Making it easy to talk to loved ones across the world for free and unlimited vs (without having to prepay card and have limited time). All you need is internet or Wi-Fi and a phone number. They did it to stay relevant and take away competition. Which makes sense why Facebook bought Instagram and WhatsApp.
Companies can use this information to either apply it to their application / website, so they won’t lose that revenue due to the EU regulations nor get fined. These free apps make their money from companies or users that pay them to promote their content, product, or business. It is basically a way to compromise for those who have issues with privacy concerns or do not want to see all the ads and a way for a company to still benefit even if you choose to utilize their free or subscription option. Many websites either have a subscription or Ads.
Why is this article interesting & how can other companies use the information presented in the article?
I found this article super interesting since social media is a huge deal in the 21st century and technology will continue to advance, therefore there will be many other brilliant ideas to be announced. A lot of people mention how Facebook is dying out since it was a big deal for those part of the baby bloomers, generation x, and millennials. To then have Instagram the next big thing for the generation z and WhatsApp became a huge deal all around the world. Making it easy to talk to loved ones across the world for free and unlimited vs (without having to prepay card and have limited time). All you need is internet or Wi-Fi and a phone number. They did it to stay relevant and take away competition. Which makes sense why Facebook bought Instagram and WhatsApp.
Companies can use this information to either apply it to their application / website, so they won’t lose that revenue due to the EU regulations nor get fined. These free apps make their money from companies or users that pay them to promote their content, product, or business. It is basically a way to compromise for those who have issues with privacy concerns or do not want to see all the ads and a way for a company to still benefit even if you choose to utilize their free or subscription option.
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3 Questions For You
If you lived in one of the EU countries, which option would you choose?
Do you agree with what Meta is proposing? Why or Why not?
Do you believe Facebook is dying? What about WhatsApp and Instagram?
Works Cited
Marinho, Helder. “Meta Plans to Charge up to $14/Month for Ad-Free Instagram in Europe.” International Business Times, International Business Times, 3 Oct. 2023, www.ibtimes.com/meta-plans-charge-14- month-ad-free-instagram-europe-3713897.
Samschechner. “WSJ News Exclusive | Meta Plans to Charge $14 a Month for Ad-Free Instagram or Facebook.” The Wall Street Journal, Dow Jones & Company, 3 Oct. 2023, www.wsj.com/tech/meta- floats-charging-14-a-month-for-ad-free-instagram-or-facebook-5dbaf4d5.
TBH, Team. “From Facebook to Meta: The Journey of Meta Platforms.” The Brand Hopper, 24 Mar. 2023, thebrandhopper.com/2023/03/24/from-facebook-to-meta-the-journey-of-metaplatforms/#:~: text=Meta%20Platforms%2C%20formerly%20known%20as%20Facebook%2C%20was%20founde d%20by%20Mark,anyone%20with%20an%20email%20address.