Meta and Discovery+ Adjust Ad-Free Subscription Plans: Changes Ahead!

Meta plans to charge its European customers $14 a month for access to Instagram and Facebook without advertisements. On the other side, Discovery+ is increasing the cost of its $9/month ad-free subscription tier.

Meta Charges $14 for Ad-Free Facebook and Instagram Access for EU Users

To overcome the strict new ad privacy regulations in the European Union, Meta has a new strategy. If people do not consent to the firm using their data for targeted advertisements, it is considering charging its European users approximately $14/month for an ad-free version of Instagram. Users who pay the subscription cost can utilize Meta’s services without being interrupted by advertisements. The laws as they currently stand prevent Meta from showing users targeted adverts without their permission, which is likely to hurt the company’s advertising revenue.

Price for ad-free membership

The plan is purportedly known as “subscription no ads” or SNA by the corporation. In the upcoming months, it plans to begin spreading it out. Regulators may request a more affordable solution if they don’t think Meta’s plan is an adequate workaround, which is currently up for debate.

Although several costs were explored, the £10 is the most practical and will be put into effect shortly. For desktop Facebook or Instagram accounts, the monthly cost would start at £10 ($10.5), but it would increase to about $14 for mobile accounts. This is made possible by the commission fees levied by the app stores of Apple and Google. The effort to comply with the EU’s prohibition on customized advertising through the new subscription tiers hurts Meta’s main source of income. If customers are given the option to choose between a free, ad-supported plan and a paid membership, they might choose the free plan. Additionally, it will assist Meta in adhering to rules without having an impact on its advertising business.

Read More: Meta to Offer Ad-Free Subscription Plans For European Users

Meta’s European dependence

Despite just making up 15% of Facebook’s overall daily active users, Europe provides almost a quarter of the company’s advertising revenue.

Meta under hot waters

Last year, the regulators of the EU declared that Meta had to provide users the choice to reject tailored adverts based on their usage of the platforms. The social network corporation was also told earlier this year that it could not use the so-called contract legal basis to send users adverts based on their online activities and was fined 390 million euros by Ireland’s Data Privacy Commission. Meta has discussed the idea with EU privacy regulators in Brussels, Irish privacy regulators, and other EU privacy regulators. The recommended subscription model may yet be altered because it’s unclear whether the new plan will be deemed compliant with EU rules by the EU regulators.

Although it is an essential component of Meta’s business strategy, the practice of showing advertisements based on user involvement has come under fire over the past several years. In 2021, Apple made it possible for customers to reject ad monitoring, a development that Meta said would cost the company $10 billion in lost revenue. The possible subscription tiers are the most recent example of how Europe’s strict regulatory framework is pressuring digital titans to alter their business models.

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Ad-Free Tier Implementation Outside EU

It is highly doubtful that Meta would introduce the SNA in the U.S. because the privacy restrictions do not apply there. However, in February, Meta CEO Mark Zuckerberg unveiled Meta Verified, a paid subscription service for verification. Users on Meta’s Facebook and Instagram platforms will be able to upload their government ID and receive a blue verification badge for $11.99/month on the web and $14.99/month on iOS. According to Zuckerberg, the new function seeks to improve platform security and authenticity.

Prices for Discovery+’s ad-free tier will increase

Warner Bros. Discovery’s independent streaming service, Discovery+, features both original content and well-liked programs from networks like HGTV and the Food Network. The recent mega-merger that gave rise to Warner Bros. Discovery (WBD) did not destroy the streaming service. After the debut of the merged Max service, it is still in operation. However, given that Discovery+ has recently disclosed a price rise, there are strong odds that users will switch.

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Discovery+ Ad-Lite tier and its changes

The on-demand programming under the ad-lite option contains advertising. In the US, this subscription tier will not change. But, users may have to pay $9/month, up from $7/month if they want to get rid of adverts. The ad-free price will increase in Canada as well. It will change from CAD 7 to CAD 9. The ad-supported option, however, still costs $5 per month.

When will users see these changes?

Existing customers will see an increase on their next billing cycle, or on November 2, whichever comes first, according to the press email from Warner Bros. Discovery. The email also mentioned that since Discovery+’s inception in 2021, this is the first price hike that has been implemented in the United States and Canada. The media behemoth hasn’t yet disclosed how many customers Discovery+ has, though.

It appears that there is still some interest in a separate edition of Discovery+. It includes both newer and classic TV shows from Discovery’s network repertoire. Along with a slew of unique films and exclusive material, they include HGTV, Food Network, TLC, Travel Channel, Discovery Channel, etc.

Why is Discovery+ becoming more expensive?

The firm added that the price hike will enable it to continue offering can’t-miss tales in the cuisine, home, relationships, real crime, and paranormal areas. Other streaming services have raised their fees this year, including Disney+, Hulu, and Peacock. Warner Bros. Discovery intends to use a similar approach with Discovery+, its more specialized streaming service.

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