Another one for the list! O TikTok is testing a new monthly subscription that would eliminate ads on the short-video sharing platform. The subscription is being tested for US$4.99. About that, Meta is considering ad-free subscriptions for people from the European Union to navigate the bloc’s advertising rules. Currently, TikTok serves personalized ads to all users over the age of 18.
According to the news portal TechCrunch, the test is on a small scale and there is no certainty that a subscription will be implemented globally. If the plan comes to fruition, TikTok will join the list of platforms that already offer fewer or no ads for a monthly fee, such asYouTube and the X (formerly Twitter).
TikTok’s parent company, ByteDancedoesn’t share its financial results publicly, but reportedly, it would have earned $85 billion in revenue in 2022. Research firm Insider Intelligence estimates that TikTok alone earned $9.98 billion in advertising revenue last year.
According to the Wall Street Journal, Meta, owner of Facebook It’s from Instagram, intends to charge users who choose not to receive personalized ads on their platforms in Europe. Users would be charged around 10% per month to use Instagram or Facebook without personalized ads on desktopand 13 per ms for non-use smartphone.
Meta believes in the value of free services that are supported by personalized advertising. However, we continue to explore options to ensure compliance with evolving regulatory requirements. We have nothing further to share at this time,” said a spokesperson for Mark Zuckerberg’s company.
Meta said in August, following an EU ruling, that it intended to change its terms and obtain users’ consent to display ads based on their personal data. However, it was fined 390 million by the Irish Data Protection Commission in January. The regulator said Facebook and Instagram could not force consent, saying consumers have to accept how their data is used or leave the platform.
Brooke Erin Duffy, associate professor in the Department of Communications at Cornell University, said younger audiences accustomed to using social platforms may resist paying for an ad-free experience.
From the beginning, users have been socialized to think of these platforms as free services, so it seems unlikely that young users in particular will opt for the paid, ad-free model.these.
* With information from the BBC | Cover photo: iStock
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