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Would You Pay for An Ad-Free Facebook?

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    NEWSLETTERS

    For users tired of sponsored posts and ads on Facebook, perhaps the social network could offer an ad-free version for $10 a month?

    Twitter founder Biz Stone suggested the idea in a blog post last week, calling it Facebook Premium, according to CNN. 
    "In general, the ads on Facebook don't seem particularly useful or engaging. However, ads on the service are universally tolerated because that's what makes Facebook free, and free is nice," Stone wrote on Medium.com.
    The numbers work out. If only 10 percent of its 1 billion users pay $10 a month, that's $1 billion a month in revenue. Compare that with revenue of only $2.85 per user in the United States for the first three months of 2013, and the $10 a month idea starts looking good. (Advertising makes up 85 percent of Facebook's money and the rest comes from social gaming -- or about 65 cents per U.S. user.)
    Of course, that $10 a month would likely only work in developed countries. It's unlikely that most people in places like India, Africa or Indonesia would pay $120 a year for Facebook without ads -- plus they already get fewer ads on their feature phones.