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Instagram could soon have exclusive features for those willing to pay

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1 month 5 days ago #260 by rodeoneerer
Facebook, Instagram and WhatsApp could soon have specialized features available only to users willing to pay for them. Meta is forming a new division called New Monetization Experiences that will be solely focused on paid features for the company’s app, according to a memo reported by The Verge.

The new division is Meta’s first serious foray into building paid features across its main social apps, all three of which boast billions of users. It’s being set up after Meta’s ads business was severely hurt by Apple’s ad tracking changes on iOS and a broader pullback in digital ad spending. The group, called New Monetization Experiences, will be led by Pratiti Raychoudhury, who was previously Meta’s head of research.

Of course, the focus on ads still makes sense, considering it drives a majority of Meta’s revenue– though it has been impacted badly this year with a significant drop in the digital advertising business. But it is interesting to see Meta look at the idea of paid features in its key products. It was reported earlier by WSJ that before Apple rolled out the ‘App Tracking Transparency’, Facebook was in talks with the iPhone maker about a possible paid version of the app on the App Store. That we know did not happen.

Paid features could help Meta find new sources of non-advertising revenue. The company’s multibillion-dollar advertising business has taken a significant hit of late due to iOS privacy changes and an economic downturn that’s also affected its competitors.

Longer term, Meta sees paid features becoming a more meaningful part of its business, he said. “On a five-year time horizon I do think it can really move the needle and make a pretty significant difference.”

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