Meta subscription service could have 12 million subscribers by 2024: BofA

  • A Bank of America research note said Meta’s verified subscription service could prove popular with influencers, creators, and businesses, helping Meta generate $1.7 billion “in high-margin revenue in 2024.”
  • Meta said it is testing the new subscription service in Australia and New Zealand.
  • Twitter and Snap recently launched their own subscription services.

Mark Zuckerberg, CEO, Meta Platforms Inc. , center, leaves federal courthouse in San Jose, California, on December 20, 2022.

David Paul Morris | bloomberg | Getty Images

Meta’s confirmed new subscription service could reach nearly 12 million subscribers by 2024, according to a Bank of America (BoFA) research note published Tuesday.

Meta CEO Mark Zuckerberg announce Instagram post subscription service over the weekend, making it a way to increase “reliability and security across our services.” The service, which starts at $11.99 per month, offers badge verification, identity monitoring features, and related tools. It is currently being tested in Australia and New Zealand.

BoFA analysts described Meta’s subscription service as catering to influencers and creators rather than consumers, and noted that companies would eventually be able to subscribe as well. Analysts write that a subscription service can be attractive to influencers because it can “help them increase their visibility, reach the badge, and potentially gain higher status in search results and content”.

Looking at subscription services costing $11.99 per month, BoFA analysts said Meta could generate $1.7 billion “in high-margin revenue in 2024.”

“Given a broader audience reach and greater revenue opportunity for content creators, we believe Meta can outperform the subscriber slope (as a percentage of users) of peer subscription offerings (the service is likely to be refined and improved over time), a BoFA research note He said.

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Meta testing for the new subscription service follows the debut in December of Twitter’s Blue subscription service, which costs $8 per month for web users and $11 per month for people who purchase it via the Apple App Store. This service has nearly 300,000 subscribers worldwide, according to a report By technology news site The Information.

Snap also has a subscription service called Snapchat+, which the social messaging service debuted in June at $3.99 per month. Snap said in late January during its most recent earnings report that Snapchat+ now has more than 2 million users.

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