Facebook And Instagram To Offer Subscription For No Ads In Europe
Portfolio Pulse from Benzinga Newsdesk
Meta Platforms Inc. (formerly Facebook) has announced plans to offer a subscription-based, ad-free version of Facebook and Instagram in the EU, EEA, and Switzerland. The subscription will cost €9.99/month on the web or €12.99/month on iOS and Android. This move is in response to evolving European regulations and is aimed at giving users more choice while complying with the EU's General Data Protection Regulation (GDPR). The company has stated that this new subscription model has been factored into their most recent business outlook and guidance.
October 30, 2023 | 12:10 pm
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NEUTRAL IMPACT
Meta's new subscription model for ad-free Facebook and Instagram in the EU, EEA, and Switzerland could potentially increase revenue, but it may also lead to a decrease in ad revenue. The impact on the stock price will depend on how many users opt for the subscription and how this affects the company's overall revenue.
The introduction of a subscription model could potentially increase Meta's revenue if a significant number of users opt for it. However, it could also lead to a decrease in ad revenue if many users choose to pay for the ad-free version. The net effect on Meta's revenue and consequently its stock price will depend on the balance between these two factors.
CONFIDENCE 80
IMPORTANCE 75
RELEVANCE 100
NEUTRAL IMPACT
The Vanguard FTSE Europe ETF (VGK) could be indirectly affected by Meta's new subscription model as Meta is a significant player in the tech sector, which is a component of the ETF. However, the impact is likely to be minimal unless the subscription model significantly affects Meta's revenue and stock price.
As an ETF that includes European stocks, VGK could be indirectly affected by significant changes in the revenue or stock price of Meta, a major tech company. However, given the diversified nature of the ETF, the impact is likely to be minimal unless the change in Meta's business model leads to a significant change in its revenue or stock price.
CONFIDENCE 70
IMPORTANCE 50
RELEVANCE 50