TikTok Pilots Ad-Free Subscription Service

TikTok/Android Authority

TikTok is currently piloting a paid, ad-free subscription service. As per screenshots that have been shared, the platform is testing the ability for users to purchase a monthly subscription for $4.99, which would allow them to use TikTok without any ads. This includes ads served through TikTok's ad platform, but not sponsored content by creators. Shortly after, a TikTok spokesperson confirmed that the test is limited to a single English-speaking market outside of the United States.

Why it Matters: TikTok is following in the footsteps of other social media platforms by offering a subscription service to generate revenue beyond advertising. Twitter and Meta have focused on offering users verification and other perks to entice them to pay, but TikTok’s initial approach focuses on allowing users to watch videos without ads.

However, TikTok may have difficulty convincing people to pay for an ad-free experience. This is because TikTok's ads are actually quite good. They are often created by users and resemble organic content, so they are not very disruptive to the user experience. Additionally, users can easily swipe away from them, making the removal of ads less appealing to TikTok users than it might be to Facebook or Instagram users, where ads are more disruptive and feel more like ads.

As a result, Meta, which is also reportedly testing an ad-free experience on Facebook and Instagram in the European Union, is likely to fare better than TikTok.