Over the last few years, social networking companies have realized the potential benefits of diversifying their businesses through subscription offerings. These subscription-based services are designed to mitigate the companies’ heavy reliance on advertising revenue. Some prominent examples of this trend include Snapchat Plus, which is offered by Snap Inc., and Twitter Inc.’s account verification subscription. Meta, the parent company of Facebook and Instagram, is the latest to join this bandwagon.
Meta Platforms Inc. has announced the launch of a new subscription service called Meta Verified. This service is specifically designed for content creators and will provide them with a range of additional perks and features, including account verification badges. These badges will help users to establish credibility and authenticity in their online presence.
The subscription service will cost $11.99 per month, and $14.99 if purchased through the iOS app. According to a spokesperson for Meta Platforms Inc., the subscription includes a range of benefits such as proactive account protection, access to account support, and increased visibility and reach. These benefits will help content creators to better manage their online presence and ensure that their content is seen by more people.
The Meta Verified subscription service will be available on both Facebook and Instagram, but users will need to purchase separate subscriptions for each platform. The subscription product will be tested in Australia and New Zealand first, beginning later this week. By providing these additional features and benefits, Meta Platforms Inc. hopes to encourage more content creators to use their platforms and help them to build a stronger online presence.
Why now?
Meta heavily relies on advertising for the majority of its revenue. However, this type of business can be greatly influenced by the larger economic conditions, leading to inconsistencies in income. The company experienced a significant blow during the onset of the pandemic and was further impacted by the European war and inflation. Unfortunately, Meta recently announced its third consecutive quarter of decreasing revenue, leading to the dismissal of 11,000 employees – equivalent to 13% of its workforce – in November. In response, Zuckerberg stated that the company must become “leaner and more efficient.” To ensure stability in income, subscriptions present a more reliable revenue stream for Meta.
What is on offer under Meta Verified?
Meta announced that, aside from the blue verification badge displayed on profiles, their service will provide extra safeguards against impersonation for its subscribers. Additionally, subscribers will have the privilege of contacting a live support agent for assistance with account issues and enjoy greater reach and visibility on the platform. To be eligible, subscribers need to furnish a government ID that matches their profile name and photo, be of legal age, and have a posting history.
Is it beneficial?
The demand for paid services that were previously free is uncertain. Twitter’s subscription service has had a slow start. The most valuable feature of Meta’s subscription package could be the boost in visibility. It’s becoming harder to stand out on Facebook and Instagram, even among one’s own followers. Meta is directing users towards content they may find interesting, rather than from people they follow. Increased visibility will result in prominence in search, comments, and recommendations, according to the company. Unlike Twitter, Meta will require users to confirm their identity with a government-issued ID to receive a verification badge.
Are there any drawbacks?
Following Twitter CEO Elon Musk’s plan to introduce a similar paid service named Twitter Blue, Meta has announced its own service that will enable users to pay for a verification check. Eventually, tweets from verified users will receive priority in searches and comments. Musk also pledged to phase out Twitter’s previous verification system, which demanded users to have a notable profile. Twitter Blue’s launch was besieged by imposter accounts, forcing the firm to take down the verification feature temporarily. However, Meta’s use of government IDs for verification is expected to mitigate the imposter issue.
Can brands and companies benefit from these subscription plans?
For a while now, subscription features have been prevalent across various industries. Initially, they were mostly centered around content creators who used them to empower their work on social media platforms. Over time, different subscription models have emerged, proving to be a win-win scenario for both social media platforms and creators. By providing incentives for content creators to produce more content, subscription models help attract more users to the platform.
However, subscription models rely heavily on loyalty. The financial success of subscription models is driven by the number of customers that are attracted and retained. When implemented effectively, subscription models have been shown to deliver numerous benefits for both creators and their customers. Nonetheless, they are not easy to execute.
As for brands, it remains to be seen how subscription models on social media platforms will work for them in the long run. Only time will tell if subscription models can be a viable marketing strategy for businesses.
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