Meta Platforms may soon introduce an ad-free subscription option for Facebook and Instagram users in the European Union, a possible strategic step to appease regulators’ concerns and prevent potential privacy-related conflicts. This is what the New York Times reports. The NYT article notes that the social media company intends to keep the availability of free versions of its platforms unchanged, a model that has proven to work well for Meta Platforms throughout its 20-year history. However, the newspaper highlights the current context, with increasing pressure from European authorities against Meta Platforms, mainly due to data protection breaches that have occurred over the years.
The hypothesis of introducing a paid service could represent an important change in the Meta Platforms strategy. This new business model would allow the company to diversify its revenue streams and reduce its heavy reliance on advertising, which is currently its main source of revenue. Nonetheless, the company’s second-quarter financials showed an increase in overall sales, indicating that advertiser interest remains high. The announcement should come as no surprise to those who follow Meta Platforms closely, as the company already teased plans to test a subscription option for Facebook and Instagram earlier this year, touting it as a measure to combat user identity fraud.
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