Short video app TikTok has become the first entertainment mobile app that is not a video game to rake in more than US$10 billion in global user spending, according to a new report, as its Beijing-headquartered parent ByteDance continues to see strong revenue growth despite political headwinds.
The app known for seconds-long viral content is now one of just a few apps to reach the lifetime gross revenue milestone, according to app analytics firm data.ai. All the other apps identified by the firm are games: Candy Crush, Monster Strike, Clash of Clans and Tencent Holdings’ Honour of Kings. PUBG Mobile, another massive hit from Tencent, may have crossed the same threshold this year, according to data from Sensor Tower.
The data.ai ranking is based on revenue derived through Apple’s iOS App Store and Google Play. Other non-game apps with the highest consumer spending are Tinder, YouTube, Disney+ and Tencent Video, according to the firm, all of which offer subscription services. Apple and Google only take a cut of digital content and services sold through their platforms, excluding e-commerce platforms like Shein and Temu.
The Chinese version of TikTok is testing paid videos again, but some users push back
For TikTok, which does not offer a subscription, revenue is driven primarily by TikTok Coins. Users purchase the coins to spend on virtual gifts sent to content creators. The app also relies on advertising and has been pushing into e-commerce, which could help the video service achieve greater growth next year, possibly reaching US$15 billion in revenue, data.ai predicted.
The company’s global e-commerce ambitions recently hit a speed bump in Southeast Asia when Indonesia banned online shopping on social media to protect the country’s micro, small and medium-sized enterprises. The move forced the platform operator to halt sales on TikTok Shop in the country.
TikTok is now set to restart online shopping in the region’s largest economy, having invested US$1.5 billion in the e-commerce unit of PT GoTo Gojek Tokopedia to become the Indonesian firm’s largest shareholder.
ByteDance remains the world’s most valuable private company owing to the strong growth of TikTok and its Chinese version Douyin. The company’s revenue jumped 40 per cent year on year to US$29 billion in the second quarter, just US$3 billion less than Facebook owner Meta Platforms in the same period, The Information reported in November.
However, ByteDance’s valuation is down 10 per cent from a year ago to US$268 billion, as the company’s path to a highly anticipated initial public offering remains unclear amid heightened regulatory scrutiny in the US.
02:32
US lawmakers grill TikTok CEO on app’s alleged ties to Chinese Communist Party
US lawmakers grill TikTok CEO on app’s alleged ties to Chinese Communist Party
The company is also trimming non-essential business lines, with a major retreat from video gaming amid a stagnating domestic market.
ByteDance last month shuttered most projects not yet online at its main gaming unit Nuverse, laying off hundreds of employees. The company said that it “made the difficult decision to restructure” its gaming business following regular reviews of its businesses and adjustments to “centre on long-term strategic growth areas”.
Denial of responsibility! Pioneer Newz is an automatic aggregator of the all world’s media. In each content, the hyperlink to the primary source is specified. All trademarks belong to their rightful owners, all materials to their authors. If you are the owner of the content and do not want us to publish your materials, please contact us by email – [email protected]. The content will be deleted within 24 hours.
