Meta, the parent company of Facebook and Instagram, is introducing a new subscription model for users in the UK that will allow them to use the platforms without seeing advertisements. This option comes at a monthly fee of £2.99 for web users and £3.99 for those accessing the platforms through iOS and Android apps. The rollout is expected to occur over the coming weeks.
Subscription Details and Pricing
The "Subscription for no ads" service gives UK users over the age of 18 the choice between continuing to use Facebook and Instagram for free with personalized ads, or paying a monthly fee to stop seeing ads. The monthly fee is £2.99 on the web or £3.99 on iOS and Android for the first linked Meta account. The higher cost for mobile users reflects fees charged by Apple and Google through their respective app store policies. For each additional account added to a user's Account Center, there will be a reduced additional charge of £2 per month on the web or £3 per month on iOS and Android. If Facebook and Instagram accounts are linked, users only need to pay one monthly fee.
Once a user subscribes, their personal data will not be used to show them ads. Those who choose not to subscribe will continue to see personalized ads and can still control their ad experience using existing tools and settings, such as Ad Preferences. Meta does not sell personal data to advertisers.
Reasons for the New Subscription Model
Meta's decision to introduce this subscription model is a response to regulatory guidance from the UK's Information Commissioner's Office (ICO) regarding data privacy and targeted advertising. The ICO has stated that Meta's previous practice of targeting users with ads as a standard condition of using Facebook and Instagram was not in line with UK law. By offering an ad-free subscription, Meta aims to comply with UK law and give users a clear choice about whether their data is used for personalized advertising.
Meta has criticized the "overreach" of regulators in the EU, where it must provide a version of its platforms with "less personalized" ads. The company welcomed the "constructive approach" of the ICO, which said the subscription option would allow Meta to comply with UK law.
Impact on Users and Advertisers
The ad-free subscription gives UK users more control over their online experience. For those concerned about data privacy, the subscription offers a way to avoid personalized advertising. However, some critics argue that it commodifies privacy, potentially creating a two-tiered system where only those who can afford to pay can protect their data.
The introduction of ad-free subscriptions could have implications for advertisers. If a significant number of users opt for the subscription, advertisers may lose access to a portion of their audience, potentially leading to increased advertising costs. Meta has been pushing AI tools to automate ad production, which could offset losses by making campaigns more efficient for remaining audiences.
Comparison to the European Union
Meta first launched an ad-free subscription option in the European Union (EU) at the end of 2023 to comply with tougher regulations intended to rein in big tech. The initial price in the EU was €9.99 per month, but it was later reduced to €5.99 per month on the web and €7.99 per month on iOS and Android. The UK price is lower than the EU price, which Meta says reflects the UK's "more pro-growth and pro-innovation regulatory environment". Unlike the EU, the UK does not have a "less personalized" free option; users must either accept fully personalized ads or pay for an ad-free experience.
The European Commission fined Meta €200 million earlier this year, stating the company should have launched a free version of its sites that used less detailed personal data for targeted ads.
Financial Implications for Meta
Advertising revenue is a crucial part of Meta's business model. In 2024, approximately 98% of its $164.5 billion revenue came from online advertising via its social media platforms. The subscription model introduces a new revenue stream, but its success depends on how many users opt to pay for ad-free access. Some analysts believe that the subscription model is a smart regulatory hedge.
