Meta is currently organizing a particular product that will have possible paid features for the company's social media applications, which are Facebook, Instagram, and WhatsApp, as reported by Engadget.
(Photo : NOAH BERGER/AFP via Getty Images)
A person walks past a newly unveiled logo for "Meta", the new name for Facebook's parent company, outside Facebook headquarters in Menlo Park on October 28, 2021. - Facebook changed its parent company name to "Meta" on October 28 as the tech giant tries to move past being a scandal-plagued social network to its virtual reality vision for the future.
The company's employees received an internal memorandum that stated the forming of a new division, the New Monetization Experiences. The former head of research Pratiti Raychoudhury will lead this group.
The company's Vice President of Monetization revealed in an interview for The Verge that the company is committed to improving its ads business. He added, "I think we do see opportunities to build new types of products, features, and experiences that people would be willing to pay for and be excited to pay for."
However, the VP did not reveal or comment on the company's decision to add paid features to the three applications.
These platforms already have several paid features such as Stars, paid events, subscriptions, and more, but only now that the company decided to prioritize them by adding more options and features. As per Hegeman, these features helped the company's business as they can make a difference from what the company is experiencing now.
In a Facebook post last June, Chief Executive Officer Mark Zuckerberg said that 2024 will be the year when the company will focus on adding more ways for different creators from the platforms to earn money.
Meta's Revenue Drop
The new Monetization Experiences division and the decision to add more paid features to the said platforms might be Meta's move after experiencing a drop in revenue of over $28.8 billion in Facebook alone during its second quarter, as predictions from analysts stated that the third quarter could have a much worse result.
Meanwhile, the whole company lost 36%, costing $6.7 billion. The department that took care of the metaverse also lost $2.8 billion in the same quarter.
Despite all of this, daily users from Facebook continue to grow by 3% to 1.97 billion, a total of 2.88 billion users combined for Facebook, Messenger, Instagram, and WhatsApp, which increased 4 percent from last year.
Also Read: Meta's First Facebook Revenue Decreases! Predictions Show Profit Declines as Well
Different Platforms with Paid Features
Applications offering subscriptions and other features being paid by their users have been starting to increase for the past couple of years.
Twitter announced the launch of Super Follows last year, where followers will be charged for additional and exclusive content. Tiktok also launched LIVE creator subscriptions last May, where creators may generate their recurring revenue from their fans' payments.
Snapchat also released a subscription tier where they gained 1 million subscribers just this month with a $7.3 million revenue in the first 30 days since it launched.
Related Article: Snapchat Plus Achieves 1 MILLION Subscribers! New Update Brings Fresh Features
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Written by Inno Flores