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TikTok, the popular video app, is testing a new way to make money by offering a limited-scale test of a monthly subscription service that eliminates ads.
The subscription plan is currently being tested in a single, English-speaking market outside the U.S. and costs $4.99 per month, which is about Sh740 at the current exchange rates.
The subscription appears to only cover ads served by TikTok, not influencer marketing one-offs or campaigns.
The company has confirmed that the subscription plan is just a single-market test, and it may not move forward with the offering more widely.
TikTok, which has more than 1 billion monthly users, largely relies on advertising revenue.
The subscription plan is one of the ways TikTok is exploring to make the app more profitable.
The company is working aggressively to diversify where its money comes from.
TikTok Shop, the platform’s in-app marketplace, has been moved to the main navigation bar for some users, and the company has been pushing ads and coupons, hoping to entice them to make a purchase.
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However, the platform has struggled to moderate its Shop offerings — a review by Insider found users could purchase items banned by TikTok’s own rules.
The subscription plan is not the first time TikTok has experimented with new ways to make money.
The company has previously tested a feature that allows users to add links to e-commerce sites to their profiles, as well as a feature that allows users to send money to their favorite creators.
The company has also been exploring ways to monetize live streams, including through virtual gifts and sponsorships.
For now, TikTok’s subscription plan is just a single-market test, and the company may not move forward with the offering more widely.
However, if the test is successful, it could be a significant new revenue stream for the company.
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