TikTok Tests Ad-Free Monthly Subscription Amidst Broader Industry Trends

October 12, 2023
1 min read
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As social media platforms evolve, monetization strategies and user preferences are coming to the fore. One such development is TikTok’s exploration of an advert-free monthly subscription. This move by the Chinese firm to test such a service in an English-speaking market, undisclosed at present, reflects a broader industry trend as platforms grapple with the balance between advertising revenue and user experience.

According to the BBC, TikTok’s ad-free service is priced at $4.99 (£4.13) during its testing phase. However, specifics about the location of the test remain undisclosed. The move comes as TikTok’s parent company, ByteDance, continues to rake in impressive revenues. Despite not publicly disclosing financial results, ByteDance reportedly garnered $85bn (£70bn) in 2022. Insider Intelligence estimates that out of this, TikTok alone generated $9.98bn through advertising.

While TikTok ventures into this new model, Meta, the conglomerate behind Facebook and Instagram, is also considering a similar initiative. Aimed at the EU market, the plan could see users paying to opt out of personalized advertisements. The proposed pricing is roughly €10 (£8.68) monthly for desktop usage and €13 for mobile users. This move is partly a reaction to the EU’s stringent advertising rules, which saw Meta facing a hefty €390m fine by the Irish Data Protection Commission.

Brooke Erin Duffy, from Cornell University, commented on the potential challenges of introducing paid, ad-free models. She highlighted the inherent belief of younger users viewing these platforms as “free” and might resist a shift towards paid models. In support of this sentiment, Maddie Hill, a 22-year-old influencer, mentioned that while she has always been aware of ads, they’ve never been particularly intrusive, especially on platforms like TikTok.

The digital landscape’s shift toward offering users an ad-supported “free” model or a premium ad-free version isn’t entirely new. Platforms like YouTube and the former Twitter have been pioneers in this regard, offering their users fewer or even zero ads for a set monthly fee.

As companies like TikTok and Meta navigate this changing terrain, it remains to be seen if the ad-free subscription model will become a mainstream offering or if users, particularly the younger generation, will cling to the platforms’ original “free” essence.

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