Instagram Subscriptions in-app purchase spotted on Apple App Store
Instagram is reportedly gearing up to launch a subscription model to benefit the creators on the app.
Why does this story matter?
Meta's advertising revenue took a hit after Apple refused to roll back its App Tracking Transparency policy that mandated user consent to track browsing activity for advertising purposes. Later, Google Play Store followed suit. So, in May this year, Instagram said it would explore the possibility of subscriptions so the platform and its creators can receive a steady stream of recurring revenue from users.
Subscription priced at Rs. 89 per month on App Store
The new in-app purchases for subscriptions on App Store are priced at Rs. 89 per month ($0.99-4.99 in the US). Before the addition of this, the only other in-app purchases on Instagram were Instagram Badges priced at Rs. 89-449 (also priced at $0.99-4.99 in the US). Badges are used to support creators during live streams. Purchasers' comments and participation during the stream are highlighted.
Instagram Subscriptions is expected to allow creators to paywall some exclusive content only for subscribers. At present, it is unclear if Instagram Subscriptions will apply only to feed posts or to Reels, Stories, and IGTV videos as well. Separately, reverse engineer Alessandro Paluzzi revealed that he found signs of Instagram developing a feature called Exclusive Stories, too.
Instagram plans to maintain three revenue streams for creators
Instagram hasn't detailed what to expect from the Subscriptions in-app purchase. However, at the company's Creator Week in June, CEO Adam Mosseri spoke about three types of creator monetization tools. Mosseri mentioned commerce encompassing things such as branded content, merchandise, and affiliate marketing; ad revenue sharing; and payment products including tips, badges, and "gated content or subscriptions."