Meta Taps New Revenue Stream in UK with Ad-Free Subscriptions

In a strategic business move aimed at both appeasing regulators and diversifying its income, Meta is launching a new subscription service in the UK. This initiative will create a significant new revenue stream for the company by charging Facebook and Instagram users a monthly fee for an ad-free experience, marking a departure from its long-standing, ad-exclusive business model.
The subscription will be priced at £2.99 per month for web users and £3.99 per month for mobile users. This fee, which covers both Facebook and Instagram if the accounts are linked, allows Meta to monetize the segment of its user base that is most resistant to advertising. Users who opt not to pay will continue to use the platforms for free, supported by the existing personalised ad system.
This new venture is a direct result of regulatory pressure from the UK’s Information Commissioner’s Office (ICO), which has now endorsed the model. The ICO sees the subscription as a valid way for Meta to comply with UK law, as it provides a clear mechanism for users to opt out of the data processing required for targeted ads. This approval follows a key legal settlement regarding a user’s right to object to such data collection.
While the UK market opens up for this new business model, the European Union remains closed. A similar subscription service was ruled illegal by the European Commission, which fined Meta €200m for breaching the Digital Markets Act. The EU’s stance is that a company cannot monetise privacy in this way, demanding instead a free version with less invasive ad targeting.
The ICO’s approval is seen by legal experts as part of a wider UK strategy to be “pro-business.” This approach, aimed at fostering the digital economy, allows tech companies more flexibility in their business models compared to the EU. For Meta, it means the UK is a crucial market for testing and proving the viability of a subscription-based social media future.