Facebook examines paid subscriptions as an alternative to advertising

May

5

2018

Rumor: Facebook is conducting market research into the question of whether people would sign up to the social network through a paid Facebook variation without ads, Bloomberg reports on the basis of sources with knowledge of the research.

The research has been carried out in recent weeks, so the sources know to tell the news agency . However, there would be no concrete plans and it is unclear whether they will ever get off the ground. In addition, Facebook would have had this type of research conducted before, but the Cambridge Analytica scandal would want to re-examine the option. Ads are responsible for the vast majority of Facebook’s revenue.

Earlier internal research into a paid option showed that users would not use it, according to the sources. That would make Facebook greedy all the money for a service that it said that it would always be free. Bloomberg mentions that Facebook may be more open to changes to its platform due to recent events in order to regain users’ trust.

During the discussion of his most recent quarterly results, Facebook- coo Sheryl Sandberg said that the Camridge Analytica affair would not have had a noticeable impact on advertisers. They would not turn their backs on Facebook in large numbers. During the discussion, the question also arose whether Facebook thinks about subscriptions, with a reference to examples such as Spotify, Apple and Netflix. Sandberg replied that this was indeed thought about, alongside other forms of monetization , and that Faceook ‘will always keep thinking about all options’. Advertisements would, however, be a natural fit for Facebook, that 80 million Pages says, of which 6 million are advertisers.

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