Meta's New Subscription Service for Verification Might Bring in $2 Billion in Revenue

Researchers estimate that new Instagram and Facebook verification subscriptions might bring in approximately $2 billion in revenue for Meta, the parent company of Facebook and Instagram, this year.

Customers and companies alike have started to value verification badges on social media platforms more and more since they help to create credibility and authenticity. These emblems were previously reserved for prominent officials, celebrities, and major corporations. Nevertheless, Meta has recently made verification available to all users for a charge.

Users now have the option to have Facebook or Instagram verify their account, which results in a blue checkmark showing up next to the user's name. This certification is crucial for influencers and companies trying to establish their brands on social media because it gives users a greater sense of legitimacy and authenticity.

Analysts predict that this year, Meta will bring in about $2 billion in income from these new subscriptions for verification. This is because both the service is expected to attract a sizable user base and memberships are expensive.

According to a report released on Tuesday by financial experts at Bank of America, close to 12 million accounts might be using the subscription service by the end of 2023 or the beginning of 2024. The analysts predict that the $11.99 for the web and $14.99 for mobile monthly subscription price will boost revenue by $1.7 billion yearly. They said that this might be a "potentially high-profit industry" for Meta, formerly known as Facebook.

Also, the cost of Facebook and Instagram verification subscriptions varies according to the user's region and the kind of account they have. The price of these subscriptions may be well worth it for brands and influencers with huge audiences because the verification badge can improve credibility and potentialize engagements.

One of several unique updates that Meta has unveiled recently as it works to diversify its revenue sources is the new verification subscription service. The company has also introduced a new metaverse platform, virtual reality products, and a variety of additional e-commerce and advertising technologies, in addition to confirmation fees.

As part of its ongoing efforts to increase trust and transparency on its platforms, Meta has decided to make verification subscriptions available to all users. The business has previously come under fire for how it manages user data, but it has been attempting to allay these worries by adding new features and procedures aimed at increasing transparency and safeguarding customer privacy.

H/T: Insider.

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