Meta Platforms Inc (NASDAQ:FB) is setting up a product team to identify and develop "possible paid features" for Facebook, Instagram, and WhatsApp, according to media reports.
All three of Meta's main social media apps boast billions of users, and this would be the company's first foray into paid features.
The move comes after Apple Inc (NASDAQ:AAPL)'s ad tracking changes on iOS and a broader pullback in digital ad spending severely hurt Meta's ads business.
Pratiti Raychoudhury, the former head of Meta's research department, will lead the group called New Monetisation Experiences, according to an internal memo sent to employees and seen by the Verge.
Meta's vice president of monetisation, John Hegeman, told the Verge in an interview that the company is still committed to growing its ads business and would not let users pay to turn off ads in its apps.
"I think we do see opportunities to build new types of products, features, and experiences that people would be willing to pay for and be excited to pay for," he said, but would not elaborate on paid features being considered.
Despite having several paid features across its apps, Meta has not charged users until now, with its revenue entirely driven by ads.
Hegeman downplayed paid features becoming a meaningful part of the business, but said if there is a chance to generate "new value and meaningful revenue lines and also provide some diversification", it would be appealing.
In the long run, Meta expects paid features to become more significant. "On a five-year time horizon I do think it can really move the needle and make a pretty significant difference," Hegeman said.
Facebook group admins can already charge for access to exclusive content, and virtual "stars" can be bought.
Certain businesses are charged by WhatsApp for the ability to communicate with their customers, and Instagram recently announced creators may also charge a subscription fee to access exclusive content.
Meta CEO Mark Zuckerberg announced in June that the company would not take a cut from subscriptions and paid features until 2024.
Social media apps have been increasingly turning to charging over the past few years, with TikTok Global testing paid subscriptions, Twitter Inc (NYSE:TWTR) has paid Super Follows, and Discord gets most of its revenue from Nitro subscription.
Both Telegram and Snapchat have added paid tiers that unlock additional features, with Snapchat's paid tier a success so far.
"We’re obviously paying attention to what’s going on in the industry," Hegeman told the Verge, adding there are multiple companies that have done interesting things in this space from which the social media giant could learn and emulate.
Longer term, Meta sees paid features becoming a more meaningful part of its business. "On a five-year time horizon I do think it can really move the needle and make a pretty significant difference," Hegeman said.