Meta's Subscription Model Could Generate $1.7B Revenue By 2024, Bank Of America Says

Meta Platforms Inc’s META new verified subscription service could land nearly 12 million subscribers by 2024. 

That's according to Bank of America Corp BAC (BofA) analysts who say that Meta could generate $1.7 billion “in high-margin revenue in 2024.” 

Meta’s subscription service is catering to influencers and creators as opposed to consumers. Analysts note that businesses would eventually be able to sign up, reports CNBC. 

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The subscription model could help influencers "increase visibility and reach with a badge and potentially higher positioning in search and content results [and] given a broader audience reach and bigger revenue opportunity for creators, we believe Meta could outperform the subscriber ramp (as a percent of users) of peer subscription offerings (the service will likely be refined and improved over time),” the BofA research analysts said, per CNBC. 

Meta’s subscription model, which is called as Meta Verified, will be rolled out first in Australia and New Zealand this week, followed by other countries.

The service will let users verify their accounts using a government ID to get a blue badge. The service will cost $11.99 monthly on the web and $14.99 monthly on Apple’s iOS and Android platforms.

“This new feature is about increasing authenticity and security across our services,” Meta CEO Mark Zuckerberg announced in an Instagram post on Sunday. 

After Meta announced its subscription service, Twitter CEO Elon Musk said it was “inevitable” that Meta would follow Twitter and charge for verified status via subscription services. 

Subscription services have become an increasingly popular revenue-generation model among social media platforms. 

Twitter has started its subscription service and charges $8 per month for Blue Verified users on the web and $11/per month for users signing up via iOS device.

However, Musk-led Twitter has attracted significantly fewer subscribers than the billionaire might have anticipated. 

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Photo: Courtesy of Anthony Quintano on flickr