Meta Expands Subscription Strategy Across Social Media and AI Platforms
Meta Platforms is accelerating its push into subscription-based services across Instagram, Facebook, WhatsApp, and Meta AI, a strategy that could unlock billions of dollars in recurring revenue and reduce the company’s dependence on advertising income.
Rosenblatt Reaffirms Bullish Outlook on Meta
Investment firm Rosenblatt reiterated its “Buy” rating on Meta Platforms and maintained a price target of $1,015 per share. The brokerage believes Meta’s planned “Meta One” subscription ecosystem has the potential to become a major long-term growth engine alongside its core advertising business.
The optimistic outlook follows recent comments from Meta executives, as well as reports from TechCrunch and Bloomberg indicating that the company is preparing to launch premium subscription offerings across its social media and artificial intelligence products.
Subscription Model Inspired by Industry Success
According to Rosenblatt analyst Barton Crockett, Meta’s strategy closely resembles subscription models that have already delivered strong results for competitors such as Snap and OpenAI.
Snapchat+, which launched in 2022, has reportedly surpassed 25 million subscribers and is generating approximately $1 billion in annual recurring revenue, demonstrating the growing demand for premium social media experiences.
Premium Features Coming to Instagram, Facebook, and WhatsApp
Meta is reportedly developing subscription plans for Instagram and Facebook priced at $3.99 per month. These premium packages are expected to include enhanced profile customization, advanced story features, and additional engagement tools designed to improve the user experience.
WhatsApp may also introduce a subscription tier priced at $2.99 per month, offering exclusive stickers, custom themes, and expanded personalization options.
Meta AI Subscription Plans Take Shape
The company is also testing premium versions of Meta AI as it expands its presence in the rapidly growing artificial intelligence market.
Potential offerings include a $7.99-per-month “Meta One Plus” package with enhanced image and video generation capabilities, as well as a $19.99 premium tier aimed at power users seeking advanced AI features and greater functionality.
Strong Recurring Revenue Potential
Rosenblatt estimates that Meta already generates roughly $1 billion in annual recurring revenue through existing subscription products such as Meta Verified and its ad-free service available in Europe.
However, the brokerage sees much greater potential ahead. With more than 3.5 billion daily active users across its platforms, Meta possesses one of the largest global user bases capable of supporting large-scale subscription adoption.
Growing Competition in AI and Subscription Services
Despite the opportunity, Meta faces increasing competition in both the subscription and artificial intelligence sectors. Companies such as OpenAI have already established substantial paying customer bases, while Meta continues to expand and refine its own generative AI capabilities.
As the AI race intensifies, Meta’s ability to convert users into paying subscribers will likely play a key role in determining the long-term success of its subscription strategy.
Revenue Outlook Remains Positive
Rosenblatt projects Meta’s revenue will increase to nearly $256 billion in 2026, up from approximately $201 billion expected in 2025.
The brokerage also forecasts adjusted earnings per share to remain relatively stable in the near term before returning to stronger growth in 2027, supported by expanding subscription revenue streams and continued investment in artificial intelligence technologies.
