Major social media platforms are planning to offer a no advertising service for a monthly fee.
The move, a reverse of streaming content services which are adding advertising, is reportedly being considered by Meta’s Instagram and Facebook.
The cost of what Meta calls SNA (subscription no ads)? $US14 a month for Instagram and nearly $17 for Facebook.
The Wall Street Journal says the proposal was presented to regulators in the European Union where new rules threaten the delivery of personalised ads without user consent.
“Meta has told regulators it hopes to roll out the plan ... in coming months for European users,” reports the WSJ.
“It would give users the choice between continuing to access Instagram and Facebook free with personalised ads, or paying for versions of the services without any ads, people familiar with the proposal said.”
A Meta spokesperson said the company “believes in free services which are supported by personalised ads, but is exploring options to ensure compliance with evolving regulatory requirements”.
Meta posted better than expected revenue for the June quarter, up 11% to $US31. 999 billion as the company continues to lay off staff. Profit was up 16% to $7.78 billion and the social media player is optimistic.
The social media company, which like other global media platforms over-hired during the heady days of a consumer switch to online during the pandemic, late last year started a wave of layoffs.
Meta is focused on what it calls the Year of Efficiency but is pushing ahead with investment in AI and key products, including the metaverse.
AI-recommended content, from accounts not followed by a user, is now the fastest growing category of content on Facebook's feed. This has driven a 7% increase in overall time spent on the platform.
Founder and CEO Mark Zuckerberg wants to keep the company lean even though its financial performance has improved.
“Now that we've gotten through the major layoffs, the rest of 2023 will be about creating stability for employees, removing barriers that slow us down, introducing new AI-powered tools to speed us up, and so on,” he says.
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