Advertising accounts for roughly 98% of Meta‘s (NASDAQ: META) revenue, but that could soon change due to a landmark legal case in the United Kingdom.
This week, Meta and Human Rights campaigner Tanya O’Carroll decided to settle a case launched in 2022. As part of that settlement, Meta agreed to stop using O’Carroll’s data to serve her personalized ads on Facebook, Instagram, and other Meta-owned platforms.
While this only applies to O’Carroll and her data, it sets a legal precedent. Given the case had the backing of the U.K.’s Information Commissioner’s Office (ICO), this could snowball into a proverbial avalanche.
Meta may charge U.K. users for an ad-free version of its platforms
In the wake of the case, Meta has suggested charging U.K. users for an ad-free version of its platforms. The tech giant already offers paid versions of its services in the European Union, starting at €5.99 ($6.46) monthly.
A subscription-based model could appeal to some U.K. users. Subscription models are used by streaming services, digital publications, Software as a Service (SaaS) tools, and product delivery services, and the average U.K. citizen spends £500 ($539.44) per year on them.
However, recent polls show that U.K. consumers are beginning to feel subscription fatigue. In 2024, 31% of respondents told YouGov they had canceled at least one subscription service in the past year, while 39% said they planned to do so in the coming 12 months.
With so many subscriptions already, are Brits likely to pay for a service they are used to having for free? Time will tell, but there’s a much better alternative.
Social media without the data harvesting
Whether users would be willing to pay for access to Meta’s platforms is tied to a second issue: subscription models don’t scale for social media. While some users are on these applications for hours per day, others check in once a week or a couple of times monthly. Effectively, the light users would end up subsidizing the heavy users.
Thankfully, there is an alternative in 2025. With the ability to stream money, social media platforms can charge per action (e.g., scrolling), like a digital meter. The micropayments model is an alternative to the data-harvesting, ad-based, and unappealing subscription. This means users would pay for their usage alone and have total privacy and control.
“Think of it like a digital electricity meter – you only pay when the lights are on. Scrolling a few posts costs a penny. Binging all night costs more but is still cheaper than a subscription and no ads, no spying.” – Gavin Lucas
This isn’t just some pie-in-the-sky idea, either. Web3 social media platforms based on this model already exist. On the BSV blockchain, Twetch proved how such an app could run on micropayments, charging users per interaction. In addition to providing revenue for the platform owners, this model allows creators to earn each time they receive a like or share with only a small cost per post.
Better yet, users of these platforms own their data. Should a platform ban a user for Terms of Service (ToS) violations, they can simply plug into another application interface and pick up where they left off.
Pay-As-You-Go Social Media: A better alternative for everyone
A micropayments-based social media platform is better for everyone: users pay as they go, platforms make money from high-engagement users, creators have new ways to earn, and all the headaches around data compliance disappear.
With the alternative already proven via existing platforms, the only question left is whether Meta has the vision to lead users into this new era. If not, it may come full circle from disruptor to disrupted and face the same fate as the static, slow-moving platforms it consigned to history when a young visionary in Harvard launched his social network in 2004.
Watch: IoT, IPv6 and the future of monetization
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