TikTok Creator Subscriptions: Reshaping Social Media Monetization
Explore how new TikTok creator subscriptions are reshaping the future of social media monetization. Here’s what this shift means for creators, platforms, and the evolving digital economy…
by Hanna Kahlert via MIDiA Research
It’s been a big week for TikTok. On the heels of shutting down its music streaming service, the platform has announced an expansion of its creator subscription program. In addition to existing LIVE Subscriptions, the paid subscription offering for livestreams, TikTok has announced that creators can now develop paid subscriptions for their followers, allowing them to access exclusive content, perks, and communities where they can engage with each other.
Much like TikTok’s music streaming and ad-free subscription rollouts, the creator subscription program is in trial mode, and only available in select markets for now. However, the strategy is part of a broader narrative as social platforms seek to expand their revenue streams to fit a more entertainment-centric focus.
Social platforms are increasingly entertainment-oriented, be it highlights of songs, games, or TV shows available elsewhere; content talking about those things; or the output from accounts like MrBeast, Juules Lebron, or Addison Rae. Unlike traditional entertainment such as television and film, social platforms do not have to pay for content production and marketing; creators do this themselves (and brands even pay them for the privilege of promotion). Rather, social platforms merely pay out a share of ad revenue to the most successful content. While ad-free subscriptions may not be the default option for the likes of TikTok or Meta, which monetise largely through ads, these platforms have had other – better – options.
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As social platforms take a prominent role in the businesses of both professional creators and entertainment companies, and user creativity expands, social platforms have an opportunity to diversify their…Find out more…
But as social platforms grow ever more prominent in the broader entertainment marketplace, they will look to eat up more of their audiences’ entertainment spend – be it by monetising creator tools, offering subscriber-only community and creator access, or exclusive content access. According to MIDiA surveys, audiences come to social platforms to be entertained, to catch up with their friends, to engage in communities, and to keep up with popular culture (and specific creators). They also come to them to be creative, using filters and easy editing tools to customise their own posts. Snapchat’s Snap+ subscription already leans into this, by offering early access to features, as does X’s Premium subscription, which allows longer posts and post editing. In this way, the social platforms compete more closely with the likes of Patreon than Netflix – and do not have to worry about the rights complications or direct competition that would come with full-platform paywalling.
Of TikTok’s branch-outs into the monetisation space, an expanded creator subscription offering seems to be the best fit for what the platform, creators, audiences, and advertisers all want right now. Expect to see more ventures like this from other social platforms moving forward, as the opportunity appears ripe for the taking and consumer behaviours shift in its favour.
Our next social report, “Social is eating entertainment: The future of memes, music, social platforms, and beyond” explores this topic in full. Keep up to date with MIDiA’s reports here.
