Meta is moving beyond its traditional ad-driven model through the introduction of new premium subscription services which could be an indication of a significant change in how these applications may be monetised in the future.
What Is Changing?
In the coming months, Meta will be rolling out premium tiers on Instagram and Facebook that allow users to access additional features to enhance their creativity, productivity and experience when using these platforms, and also to enjoy all the features of these apps, without having to pay anything for them.
Each app will have its own unique subscription options, rather than a single unified subscription option. Therefore, the premium tier of Instagram may be significantly different than that of Facebook and WhatsApp when they become available.
Enhanced Features & AI Tools
Meta has stated that one of the more prominent uses of its recent acquisition of Manus, an advanced AI system purchased for $2 billion, is that it will play a significant role in the development of subscription features for Meta products. Manus will be integrated across the Meta family of products to improve productivity and engagement on all Meta platforms.
Instagram specifically has had some early signs, as well as leaks from developers, that subscribers will have access to the following features:
- Unlimited audience lists
- The ability to see follower data (for example, users who do not follow you back)
- The ability to watch Stories anonymously, without notifying the creator
Meta is also looking into enhanced access to new tools such as Vibes, the company’s own AI-powered video creation tool. Vibes has been available for free since launch, but with the launch of the premium tier, subscribers will be able to unlock new content generation capabilities through Vibes.
What About Facebook and WhatsApp?
It’s currently unclear exactly what benefits premium users will receive from Facebook and WhatsApp; however, some media outlets speculate the addition of options within the sharing function, new features to improve productivity, and potentially an option for eliminating advertisements.
The Meta plan appears to be open-ended regarding bundling options and feature combinations, indicating a testing phase to see which grouping resonates best with target end-users prior to a mass-market introduction.
Subscription Strategy & Market Context
The upcoming tiers of subscription will function independently of Meta Verified, which allows users (creators and businesses) to pay for a badge and technical assistance related to their content. Insight gained from this product will guide Meta in creating its future premium products.
By creating these premium products, Meta is continuing to build its revenue base while capitalizing on a trend toward premium subscription-style platforms based on the success that sites such as Snapchat have experienced with offering premium social network subscriptions.
What Users Can Expect?
Meta will begin to test subscriptions in select markets very soon and will adjust subscription features based on user feedback. While Meta has not set an official date or price point for a global launch, testing might show how social media can monetize differently than advertising.
