TikTok is reported to be trialing a new ad-free subscription for users of the short-format video-sharing site who don’t want to see adverts as a potential new revenue source.
As first reported by Android Authority, some users of the app have been offered the plan for a monthly fee of $4.99. The service is being offered as part of a limited test in a single, unnamed English-speaking market outside of the US.
The platform claims more than 1 billion monthly users and largely relies on advertising revenue. Its largest shareholder is China’s ByteDance, while roughly 60% of its stock is owned by global institutional investors such as Carlyle Group, General Atlantic, and Susquehanna International Group.
The move follows a Wall Street Journal report that Meta Platforms Inc (NASDAQ:FB) may make subscribers in the European Union pay for ad-free access to Facebook and Instagram.
According to the WSJ, the tech giant is mulling a plan that would see it charging about €10, or roughly $10.50, a month for accounts on the social media sites, the WSJ reported, citing unnamed sources. For ad-free access to both accounts, users would pay an additional €6.
Accounts linked to mobile devices would attract a higher charge of roughly €13 ($13.6) to allow for commissions charged by Apple and Google’s app stores, per the report.
While supporting free services supported by personalized ads, Meta said the company is looking at options to ensure that it complies with evolving regulatory requirements.
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