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Reading: Meta’s New Subscription Service: A Risky Move or a Smart Bet?
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Marketing In Asia > Blog > Business > Meta’s New Subscription Service: A Risky Move or a Smart Bet?
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Meta’s New Subscription Service: A Risky Move or a Smart Bet?

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Last updated: 2023/02/22 at 2:01 PM
MIA Editor
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3 Min Read
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The announcement of a paid-for subscription service by Meta has received criticism for charging users for online safety and security features. For just $11.99 for web users and $14.99 for mobile users, you get an array of great features such as a verification badge, extra security against identity theft, direct support from customer service and improved visibility.

Online safety expert Kavya Pearlman was among the critics of the service, stating that paying for protection creates a “digital caste system” that benefits only the wealthy. Similarly, The Real Facebook Oversight Board, a group that has been openly critical of Meta, tweeted that the new service forces users to fund a business model that is harmful.

Professor Sinan Aral from MIT conducted a 2-year experiment to check how labelling accounts affected people’s behaviour in the virtual world. He warned that adding “identity cues” like Twitter Blue or Meta Verified could lead to more rash reactions, creating a distinct separation between “belonging groups” and those excluded, and may shift the focus from content to personalities.

Also Read: Meta Verified: A New Subscription Bundle For Instagram and Facebook Users

Analysts anticipated that social media companies’ new models wouldn’t generate as much revenue as Meta does from ads – certainly not in the near future. It was thought that these models wouldn’t bring in tens of billions like Meta does. Angelo Zino of CFRA research projected that the new account verification service would not surpass one to two percent of total revenue in the next 18 months. He stated that Meta would most likely continue to seek other ways to monetize its two billion users, as other major players like Netflix are expected to consume chunks of its advertising revenue in the coming years.

Meta’s subscription service will initially launch in both Australia & New Zealand, following which it will be available in other countries too. The news was met with criticism & jokes on social media as people accused Mark Zuckerberg for supposedly taking ideas from Elon Musk. Musk himself replied to one such message, simply stating “Inevitable”. While Zuckerberg will hope for a smoother launch than Musk experienced with Twitter Blue, which was quickly recalled due to impersonation accounts, some analysts suggest that Meta’s launch may have been rushed and unplanned.

Many small businesses and public figures are becoming increasingly interested in subscription services, as they offer better security and visibility. However, there could be a potential issue with users who disagree with the concept of paying for Facebook or Instagram services. This could lead to negative reactions from these users. Dan Ives of Wedbush Securities describes the move as “risky” for Meta.

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