TikTok aims to secure new revenue stream via LIVE subscription service

As part of Bdaily’s latest feature week, The Business of Social Media, we spoke with John Phillips, general manager at Zuora, as TikTok begins to roll out its LIVE subscription service.

This new development aims to offer creators the option to charge a monthly fee to view their content, likely as a result of live content having become a larger proportion of the platform’s stream of content.

Zuora, whose UK headquarters is in London, is a subscription management software provider who currently works with Sony, Microsoft, Ford and Zoom, and coined the term ‘Subscription Economy’. The company specialises in recurring revenue businesses, primarily focusing on subscription models, such as that which TikTok is now adopting.

John Phillips, general manager at Zuora, commented: “By rolling out this new subscription service model, TikTok are clearly trying to position themselves as the marketplace of choice for video content creators.

“Over the past few years, the video sharing app has provided creators with a platform and an audience to showcase their work. Now they are providing a way for these creators to monetise their offering through subscriptions.

“We are living in the golden age of content creation. There is so much more music to explore, so many new movies and shows to watch, so many new voices to discover.

Regarding the subject of the accessibility of content creation and the benefits of the subscription model, John continued: “Whereas previously producing and distributing videos was confined to a handful of creators with expensive equipment, now with smartphones everyone is their own producer.

“Power has become decentralised. Subscriptions are a robust and stable business model which will enable content creators to start more intimate, long-term relationships with their audiences.

“If you want to work in the commercial arts today, your imagination should be wild and free, but your finances should be nice and boring. By launching LIVE, TikTok is making strides to become the go-to platform for video content.”

Looking to promote your product/service to SME businesses in your region? Find out how Bdaily can help →