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Meta launches subscription push to ease investor concerns over soaring AI costs

FILE - The Facebook logo is seen on a cell phone in Boston, USA, 14 Oct. 2022.
FILE - The Facebook logo is seen on a cell phone in Boston, USA, 14 Oct. 2022. Copyright  AP Photo/Michael Dwyer, File
Copyright AP Photo/Michael Dwyer, File
By Doloresz Katanich with AFP
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Meta on Wednesday launched paid subscription plans for its flagship apps, marking a major push by the tech giant to diversify beyond its long-standing reliance on advertising revenue.

Meta launched a new wave of paid subscriptions globally across Instagram, Facebook and WhatsApp, while also testing premium offerings aimed at businesses, creators and users of its AI products.

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Meta’s head of product, Naomi Gleit, announced the move in a video posted on Instagram, saying the company was rolling out Facebook Plus, Instagram Plus and WhatsApp Plus globally, with additional plans for businesses, creators and artificial intelligence products in development.

The company said it is also beginning tests of separate subscription offerings aimed at creators, businesses and Meta AI users, signalling a broader push beyond consumer-facing app subscriptions.

These offerings "come together under a new name: Meta One," the post said.

Meta confirmed earlier this year that it was planning subscription offerings as it seeks to diversify beyond advertising and offset growing costs linked to its AI expansion.

The company has projected capital expenditure of between $125 billion (€115 billion) and $145 billion (€133 billion) this year, largely tied to AI data centres.

According to AFP, citing media reports, Instagram Plus and Facebook Plus will cost $3.99 (€3.70) per month, while WhatsApp Plus will be priced at $2.99 (€2.77) per month.

Meta shares rose 3.7% following the announcement.

Instagram Plus and Facebook Plus will offer additional features, including enhanced analytics, story rewatch statistics, expanded audience reach and profile customisation options.

WhatsApp Plus will focus on personalisation, including premium stickers, custom ringtones and app themes.

Meta said future subscription tests for creators, businesses and AI users will be grouped under a new umbrella brand called “Meta One”, which is expected to become the company’s main hub for subscription products going forward.

CNBC reported that subscription plans for the service will start at $7.99 (€7.40) a month and could cost as much as $19.99 (€18.50) per month for Meta One Premium. According to the news outlet, the new subscription service will first be tested in Singapore, Guatemala and Bolivia starting next month.

In 2023, Meta launched paid ad-free versions of Facebook and Instagram in Europe to comply with EU data privacy rules, giving users the option to choose between a free ad-supported experience and a paid ad-free subscription.

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