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Memberships will supercharge the ARPU of Meta's European users
In the EU, $META is looking to offer users an ad-free experience in exchange for $14/month. In their Q2 2023 earnings results, Meta generated $17.88 in revenue per European user, or $5.96 in ad revenue each month. If Europeans start paying $14/month, it would mean that each user becomes more than 2X more profitable for Meta than if they relied on ads.

If this option becomes popular, and I doubt it will be popular because Instagram and Facebook ads aren't as annoying as $NFLX and Youtube ads, it would be a major step forward towards boosting profits for the business.

Source:
TechCrunch
Meta planning ad-free subscription or tracking ads 'choice' in EU, per WSJ -- in latest bid to keep snooping | TechCrunch
New battle lines appear to be being drawn up in the European Union between Facebook and Instagram owner Meta and regional users' privacy rights. As it New battle lines appear to be being drawn up in the European Union between Facebook and Instagram owner Meta and regional users' privacy rights.

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