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> Individually each European user represents somewhere around €20 per year, ten times less than what Meta is asking. That's not correct. Their ARPU in Europe
by jsnell 3y ago
> Individually each European user represents somewhere around €20 per year, ten times less than what Meta is asking.
That's not correct. Their ARPU in Europe is about $20 per quarter, not per year.
- mrweasel 3y agoThe latest numbers I could find stated $4.50 per quarter, but those are pretty old. Do you happen to have the source for the new number? Old number is available here: https://www.theguardian.com/technology/2016/jan/28/how-much-are-you-worth-to-facebook https://www.theguardian.com/technology/2016/jan/28/how-much-... EDIT: Nevermind: https://www.statista.com/statistics/251328/facebooks-average-revenue-per-user-by-region/ https://www.statista.com/statistics/251328/facebooks-average... Around €70 per year seems to be the new number, it has also been clarified that this is revenue, not profit, making it a pretty good indicator of how much Meta needs to charge for Facebook to turn a profit (about four times less than what they are actually charging).
- jsnell 3y agoBut Facebook aren't really charging 250 Euros either. The actual price they're charging is 9.99 Euros per month, or 120 per year. The subscription really is priced in line with their ad revenue. It might not be priced in line with the value you're getting from Meta's apps, but it definitely isn't any kind of play to make it intentionally so expensive that nobody would buy it. Any cheaper, and they'd be basically guaranteed to lose money by offering the subscriptions just due to adverse selection effects. (Frequent users are more likely to subscribe, but also will see more ads.)