TikTok

WHAT IS TIKTOK?

TikTok was one of the most popular social media apps in 2020. It is video creating and sharing social networking app. It was founded in 2017. Initially it started off with the purpose to have family and friends connect no matter where they were but overtime, they changed their business model. Now, it allows users to watch, create and share 15-second videos through their cellphone. It added many features in terms of creativity, quirks of music, voice over filters etc. It has a high user base especially appealing to young people (Target market: Age below 30). Their most popular user base lies in China. The app solves the entertainment factor in the market. While regular social media apps like Facebook, Instagram, Snapchat etc. they are mostly picture based, messaging and communicating features. TikTok takes a unique route of communicating through videos with their AI features that allows users with many different lip-syncing tools and areas of entertainment which is unique compared to other platform. One of the biggest problems it solved is content creation, they made it so much easier for users to make content by making their editing features simple.

BUSINESS MODEL:

(Source: tiktokmodelo.blogspot.com)

FUNDING AND REVENUE STREAMS:

TikTok is owned by Beijing based company ByteDance, that has been around since 2012. Tiktok’s stream for revenues comes from areas like in app advertisements where ads show up in between video searches. These accumulated ads provide them source for money. There are features for in-app purchases where users can sell coins and gift them to favorite video makes. “TikTok offers in-app purchases of coins, starting at 100 for $0.99 and leveling up to 10,000 for $99.99. Users can give coins to their favorite creators, who can in turn exchange them for digital gifts.” TikTok also charges a fee for that. ByteDance has also been accused of many employees from the CCP, where their source for funding along with user data selling businesses and many politicians. Among many other forms of funding, celebrities, big tech, notable institutions receive funding through TikTok (José Andrés, Bill Nye, Lilly Singh, Neil deGrasse Tyson, and Tyra Banks are among the notables on the list)

DARK SIDE OF TIKTOK:

While the app itself may seem innocent and harmless, TikTok has controversial records of ties with the CCP and selling United States user-based data to CCP and politician. It is still under investigation for national security threat for data breaching. Along with such issues, it built up notoriety for censorship. One of the most viral incidents being: “New Jersey teen Feroza Aziz, whose account was suspended shortly after she posted a video explaining the CCP’s oppression of Uyghur Muslims”. I’m a huge advocate for the first amendment of our nation and without indulging into a political discussion, I leave my fellow reader to dig more into the issues related to data breach and censorship to make their own judgments in these issues.

LEAKED AD-DECK OF TIKTOK IN 2018:

(https://twitter.com/mattnavarra/status/1090967906807099392?lang=en)

“An advertising pitch deck used by fast-growing short form video sharing app TikTok has leaked, providing a snapshot of usage in its biggest markets in Europe.

The pitch deck was obtained by Digiday which says it was sent to a large (unnamed) European ad agency. Metrics and gender breakdowns for the UK, France, Germany, Spain and Italy are included in the deck. The slides are dated November 2018.”

REFRENCES:

Doffman, Z. (2020, August 01). Is TikTok spying on you For China? Retrieved February 07, 2021, from https://www.forbes.com/sites/zakdoffman/2020/07/25/beware-tiktok-really-is-spying-on-you-new-security-report-update-trump-pompeo-china-warning/?sh=5ae304b54014

Glum, J. (n.d.). Meet the head of tiktok, a 35-YEAR-OLD who makes employees do Push-ups if their videos don’t get enough likes. Retrieved February 07, 2021, from https://money.com/how-tiktok-makes-money-tiktok-owner/

Hao, N. (2020, August 25). TikTok’s parent company Employs Chinese Communist party members in its highest ranks. Retrieved February 07, 2021, from https://www.theepochtimes.com/tiktoks-parent-company-employs-ccp-members-in-its-highest-ranks_3451561.html

Hayes, D. (2020, May 28). ‘Learn on TikTok’ funds go to media FIRMS, celebrities LIKE Tyra banks And José Andrés. Retrieved February 07, 2021, from https://deadline.com/2020/05/learn-on-tiktok-funds-go-to-media-firms-celebrities-like-tyra-banks-and-jose-andres-1202945256/

Jashinsky, Emily (2020, April 01). Why TikTok is the worst way to waste time in quarantine. Retrieved February 07, 2021, from https://thefederalist.com/2020/03/26/tiktoks-communist-china-ties-make-it-the-worst-way-to-waste-time-in-quarantine/

Nolan, L. (2020, March 13). Report: China-Owned TIKTOK focuses on global expansion. Retrieved February 07, 2021, from https://www.breitbart.com/tech/2020/03/13/report-china-owned-tiktok-focuses-on-global-expansion/

Svab, P. (2020, December 10). Facebook fact-checker funded by Chinese money THROUGH TikTok. Retrieved February 07, 2021, from https://www.theepochtimes.com/facebook-fact-checker-funded-by-chinese-money-through-tiktok_3610009.html

Ssvar (2019, January 31). Leaked TikTok ad deck suggests it has 17M+ MAUs in Europe. Retrieved February 07, 2021, from https://ssvar.ch/leaked-tiktok-ad-deck-suggests-it-has-17m-maus-in-europe/

Zindulka, K. (2020, August 12). Former MI6 Chief: Tiktok Gives CCP a backdoor into POLITICIANS’ Data. Retrieved February 07, 2021, from https://www.breitbart.com/europe/2020/08/11/former-mi6-chief-tiktok-gives-ccp-a-backdoor-into-politicians-data-through-their-kids-smartphone/