MENLO PARK – Under increasing pressure to reduce its advertising, complicated with rapidly growing startups like Ello promising ad-free social networking, it seems Facebook has been forced to take action. Starting Oct. 10th Facebook users will have the option to enjoy an ad-free experience for a $999 price tag.
“User experience is our highest priority, but to maintain Facebook’s massive operating costs an ad-free or limited ad network is not possible. In fact, we plan to grow our advertising platform. But we can help users who wish to opt-out,” Facebook founder and CEO Mark Zuckerberg said during a recent CNN interview.
On October 10th, Facebook users will see a new section on their profiles that will allow them to pay an annual $999 fee to turn off all advertising.
CNN made the point that it seems like the price point is out of reach for the average user.
Facebook spokesman Paul Horner responded. “Yes, the price is probably beyond the average user. Some critics are already disparaging the new program as functionality for the wealthy, but we’ve carefully calculated these costs and they’re right in line for us to maintain an acceptable profit. If you don’t want ads, this is the price.”
A recent rumor, now debunked by Snopes.com, said Facebook planned to charge users $2.99 per month for service. Though the story was proven false, could this happen in the future?
“Absolutely not.” Horner said. “Facebook will always remain free.”
But critics say this new program could be the start of a move to begin charging users for enhanced functionality and services.
“The basic ad-supported package might remain free, but this move signals that premium services could be on their way. Fees for data storage, enhanced chat functionality, daily usage, etc. might cost you in the future,” technology analyst Anthony Owen said.