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

Mark Zuckerberg, chief executive officer of Meta Platforms Inc., center, departs federal court in San Jose, California, on December 20, 2022.

David Paul Morris | Bloomberg | Getty Images

Metas new Verified subscription service could reach nearly 12 million subscribers by 2024, according to a Bank of America (BoFA) research note released Tuesday.

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

The BoFA analysts described Meta’s subscription service as catering to influencers and creators rather than consumers, noting that businesses will eventually be able to sign up as well. The subscription service could appeal to influencers because it could “help them increase visibility and reach with a badge and potentially higher rankings in search and content results,” the analysts wrote.

Given that the subscription services cost $11.99 per month, the BoFA analysts said Meta could generate $1.7 billion “in high-margin revenue” by 2024.

“Given wider audience reach and greater monetization opportunities for creators, we think Meta could outperform the number of subscribers (as a percentage of users) of comparable subscription offerings (the service is likely to be refined and improved over time), the BoFA research note said.

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

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

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