While Meta (META) has been mocked and laughed at since its paid subscription service was announced, Bank of America analysts believe the move is going to pay off in a big way.
While the subscription model wasn't technically "Meta's plan," the company is expected to take in a bunch of new revenue nonetheless.
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"The BoFA analysts described Meta’s subscription service as catering to influencers and creators as opposed to consumers, and noted that businesses will eventually be able to sign up as well," researchers said in an analyst note, according to CNBC.
"The subscription service could be attractive to influencers because it could 'help them increase visibility and reach with a badge and potentially higher positioning in search and content results,'" the analysts wrote.
At a rate of $11.99 per month per App (the subscriptions are separate for Instagram and for Facebook), Meta could generate $1.7 billion high-margin dollars from the expected 12 million subscribers.
Meta's move to offer a subscription plan in February came just weeks after Twitter CEO Elon Musk announced that his company would be doing the same.
The company rolled out Meta Verified, which grants subscribers a blue badge once they identify themselves with a government-issued ID and pay $11.99 a month for the desktop version or $14.99 per month for the iOS version.
