The news: TikTok is now offering an ad-free subscription option for UK users above 18. The subscription, which costs £3.99 ($5.26) monthly, allows users to avoid ads and prevents data from being used for marketing purposes.
Subscribers will still see paid or sponsored creator content.
The trend: Other social platforms are turning to subscriptions as a potential revenue stream.
Why it matters: TikTok is betting that ad-free subscriptions, especially in regions where regulators are placing tighter limits on behavioral advertising, will prove meaningful and diversify revenues.
TikTok’s latest feature could be a means of complying with the UK’s GDPR legislation, which prohibits companies from collecting user’s online data for advertising. By offering users a paid alternative to targeted ads, TikTok may be trying to show regulators that users have more control over their data.
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