TikTok could soon launch an ad-free subscription service on its app.
Code within the social platform suggests that subscribers may soon be able to access content without interruptions from advertising for $4.99 per month.
Screenshots of TikTok asking users if they want to upgrade to an ad-free experience were shared by Android Authority.
Why it matters to us. If signups for TikTok’s ad-free subscription tier prove popular, it could have a significant impact on the reach of the platform’s advertisers, ultimately reducing the value of the product.
Which ads are excluded? The paid version of the app will still show one-off influencer marketing campaigns – only ads run by TikTok will be excluded. This means the change likely won’t help combat the problem of TikTok influencers not disclosing brand partnerships.
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Why now? TikTok generates most of its profits from advertising revenue – which amounted to $9.4 billion in 2022. This number is expected to quadruple by 2026. However, to mitigate financial risk, the platform’s executives are looking at diversifying revenue streams. The possible introduction of paid subscriptions is no surprise.
Deep dive. For more information on the platform’s latest developments, visit TikTok’s newsroom.
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