Hot take on EU news
EU is $70 ARPU market for $META.
I wonder whether Meta should run an experiment by launching two monetization:
1. $10/month with no ads to access FOA (FB+IG+WhatsApp+Messenger)
2. Opt-in to targeted ads
Users decide what they value.
EU is $70 ARPU market for $META.
I wonder whether Meta should run an experiment by launching two monetization:
1. $10/month with no ads to access FOA (FB+IG+WhatsApp+Messenger)
2. Opt-in to targeted ads
Users decide what they value.
I get it ads ARPU likely to go down because
1. You lose perhaps higher purchasing power users
2. The ad infra appeal itself goes down (lower inventory, lower purchasing power userbase)
1. You lose perhaps higher purchasing power users
2. The ad infra appeal itself goes down (lower inventory, lower purchasing power userbase)
But subscription monetization would be 70% higher than current EU ARPU, so probably net net not a disaster. Subscription could also be higher quality revenue, so higher multiple maybe ?
Also allows Meta to do a forced experiment. If very successful, Meta can launch elsewhere.
Also allows Meta to do a forced experiment. If very successful, Meta can launch elsewhere.
Given US ARPU is >$200, itβs very difficult to offer subscriptions here, and Meta may need to fight hard to protect targeted ads in the US.
As mentioned, just a hot take and can be stupid take. For the uninitiated, Iβm reacting to this news
wsj.com
As mentioned, just a hot take and can be stupid take. For the uninitiated, Iβm reacting to this news
wsj.com
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