Meta Platform Inc. joins Twitter Inc. as the latest social networking entity to diversify its income stream. To diversify its ad revenue, Meta asks users to pay to verify their accounts. This is a similar strategy used by rivals, including Twitter, to cover their costs for account authentication.
A blue check mark, which confirms one’s identity, will now be available to users of Facebook and Instagram. This feature is now available from the newly released Meta Verified service. The subscription fee starts from $11.99 a month, according to a statement released by the company.
On Sunday, Elon Musk, the Chief Executive Officer of Twitter, tweeted that his competitor’s move was “unavoidable”. However, the revenue repercussions will likely remain minor soon.
New Feature Revenue Generation Potential
Mandeep Singh, a Bloomberg Intelligence analyst, noted that the Meta Verified feature could generate up to $3 billion in Meta’s annual sales. Last year, the organization had an approximate income of $117 billion.
Singh, however, believes that the transition may be more effective following the move. It will help to preserve the creative content of their “creators”. Content creators will pay to have their accounts verified and have their posts protected and distinguished.
The company said through improved visibility, various platform sections, including search, recommendations, and comments, will gain prominence.
Users Slow to Adapt
By mid-January, fewer than 0.2% of monthly active users of Twitter US had signed for the subscriptions. This included the Twitter Blue subscription service, according to a document viewed by the Information in mid-January.
After taking a step back and reversing its original roll-out plan, Twitter relaunched its premium service in December. Initially, people were utilizing the platform to masquerade as prominent accounts, including Elon Musk.
Meta is launching their subscriptions in Australia and New Zealand this week, offering users access to their services. A government-issued identification will be needed to go through the authentication process.
A Meta spokesperson in an email note said apart from a verification badge. The subscription will also provide other features. This includes access to support services for account holders, account protection, and increased reach and visibility.
