TikTok is venturing into a fresh revenue stream by embarking on a limited-scale test of a monthly subscription service designed to eliminate ads, according to Variety.
Contrary to earlier reports, however, this subscription plan is currently not available in the United States.
It was being said that a new version of the TikTok app contained code indicating the existence of an ad-free subscription tier, purportedly priced at “$4.99 per month in the USA during this testing phase.
In response to inquiries, a TikTok spokesperson confirmed that the company has indeed initiated a limited-scale trial of an ad-free subscription plan, but it is being tested in a market outside of the United States.
The spokesperson did not disclose the location of this ongoing test or the subscription’s pricing details.
The code, discovered by Android Authority, also includes the phrase “Price includes VAT,” which implies that the test market might be subject to a value-added tax. Notably, the United States does not impose VAT on goods or services.
At present, TikTok’s subscription plan remains confined to a single-market trial, and there is no guarantee that the company will expand it globally.
TikTok, boasting over 1 billion monthly users worldwide (including more than 150 million in the U.S.), predominantly relies on advertising revenue. Additionally, the platform has introduced shopping features within the app.
It is worth noting that TikTok is owned by China’s ByteDance, and its Chinese ownership has sparked political controversies and opposition in the United States and other countries.
Various other apps have already adopted ad-free subscription models, with Snap’s Snapchat+ being a notable example.
Last month, Snap reported that Snapchat+ had surpassed 5 million subscribers in just over a year since its launch. The subscription, priced at $4 per month, offers access to experimental and prerelease features.
Meanwhile, entrepreneur Elon Musk has expressed his desire to introduce a premium version of X (formerly known as Twitter) that would completely eliminate ads. However, this aspiration has not yet materialized.
Similarly, Meta is also planning to introduce an ad-free tier for Facebook and Instagram users in Europe.
