Mark Zuckerberg's Meta (META) is promoting a new subscription service and a Bank of America (BAC) analysis has a positive outlook on the company's latest move.
While the announcement of the service was met with mixed reactions, a new Bank of America research note said the service could have nearly 12 million subscribers by 2024.
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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," wrote 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.
The research note said that at $11.99 per month, Meta could generate $1.7 billion in high-margin revenue in 2024.
"Given a broader audience reach and bigger revenue opportunity for creators, we believe Meta could outperform the subscriber ramp (as a percent of users) of peer subscription offerings (the service will likely be refined and improved over time)," it said, according to CNBC.
Meta's New Subscription Services
A Twitter post from Disclose.tv quoted Zuckerberg's announcement.
"New product announcement: This week we're starting to roll out Meta Verified -- a subscription service that lets you verify your account with a government ID, get a blue badge, get extra impersonation protection against accounts claiming to be you, and get direct access to customer support," it read.
"This new feature is about increasing authenticity and security across our services," it continued. "Meta Verified starts at $11.99/month on web or $14.99/month on iOS."
The announcement said Meta was currently testing the new subscription service in Australia and New Zealand.
Tesla (TSLA) CEO Elon Musk, who implemented fees to Twitter Blue shortly after taking over the social media microblogging site, responded to the announcement, calling it "inevitable" in a post on Twitter.
