TikTok skyrocketed to fame during the Covid-19 lockdowns, offering a much-needed escape.
Now, the app is a monster with more than 232 million downloads worldwide in Q4 2023—and when you do that math, that’s about 2,577,777 users a day. Moreover, consumer spending is over $3.84 billion annually. The content and sales opportunities have made it an attractive app for both individuals and businesses alike.
Share of time spent among TikTok users in the United States engaging with social media apps as of February 2023 (Source: Statista)
Now, with uncertainty looming, the platform’s devotees are on edge. Here’s what we know:
1. President Biden has signed legislation forcing the sale of TikTok’s U.S. operations.
2. The Chinese Government has said they’d rather see TikTok be shut down than to abide by the U.S. Government’s forced sale request.
3. TikTok is gearing up to challenge the legislation on free-speech grounds.
4. TikTok, and parent company ByteDance, are now considering their next steps.
Why the Fuss?
1. Many creators rely on TikTok as a source of income.
2. Some perceive a ban as an infringement of their rights.
3. Concerns exist over potentially unsafe content and propaganda.
4. TikTok’s algorithm is the most superior.
The Algorithm Dilemma: TikTok’s algorithm, a prized possession, could be excluded from any potential sale due to Chinese regulations. Without it, the app’s value takes a nosedive.
What’s at Stake?
As reported by The Wall Street Journal, TikTok’s worth fluctuates between $20 billion and $100 billion, contingent on what’s included in the deal. Without the algorithm, the price plunges to the lower end of the scale.
What Can You Do?
If you, or your brand, are advid TikTokers, here are a few tips:
1. Diversify your video platforms beyond TikTok.
2. Explore alternatives like YouTube Shorts or Instagram Reels.
Preferred social media site or platform for viewing short-form video in the United States (March 2023)
The only thing that is certain with this is the social media world will be bracing for the wave of unpredictability as we await the future of TikTok for U.S. users.