Social media giant TikTok faces a wave of challenges, including a licensing dispute with Universal Music Group, increased competition from Instagram Reels, a possible forced sale of its U.S. business, and a lukewarm expansion into the U.S. for the first time. is stalling. To e-commerce.
according to it wall street journal, The newspaper reported, citing people familiar with the matter, that TikTok's U.S. user growth has stalled for the first time since the service launched. 170 million users In the United States.
The data shows that 9% Aging decline in average monthly user numbers 18-24 Citing mobile analytics company Data.ai, the report said that the core market in the US is expected to grow in 2022 to 2023.
As this generation ages into young adulthood, TikTok's core demographic may be spending less time on the app. Many young people are starting their first full-time job, and the demands of their new career may leave them with little room to scroll through TikTok.
According to a company spokesperson, WSJ While claiming that “TikTok is and will continue to be the premier platform for millions of users, creators, and advertisers,” the number of users leaving the app is increasing and the overall user base It is said that this has led to the stagnation of the economy. This stagnation could affect advertising revenue, which is an important source of revenue.
According to officials, WSJ TikTok met, but did not exceed, its advertising revenue growth target for the second half of 2023.
Adding to TikTok's predicament is the collapse of negotiations with TikTok. universal music groupresulting in music from artists such as: Taylor Swift and drake It has been removed from the platform. UMG also began removing “manipulated” versions of UMG recordings on TikTok that users had uploaded as “sounds.” An example of a manipulated truck is Skibidi toilet Accounts, an online phenomenon built on “manipulated” versions Timbaland's 2007 truck, Give It To Me (feat. justin timberlake and Nelly Furtado).
As the war between UMG and TikTok continues, the potential impact pales in comparison to the threat of a U.S. ban on TikTok.
US lawmakers recently introduced legislation targeting TikTok. This law is Act to protect Americans from regulatory applications by foreign adversariesaims to address national security concerns surrounding app ownership. part time dancea Chinese company.
The bill, passed by the House of Representatives last week (March 13), could force ByteDance to sell its ownership of TikTok in the United States in a timely manner. 165 day to day (Less than six months left) Otherwise, the platform will be banned from the country's app stores.
“This is my message to TikTok: break with the Chinese Communist Party or lose access to American users,” the Republican congressman said. mike gallagher A doctor in Wisconsin told Reuters.
The company has repeatedly said it does not share user data with China. The Chinese government also expressed its opposition to the forced sale of TikTok in the United States at a press conference with a Commerce Department spokesperson. Hae Yadong He said the United States should “stop unjustly suppressing” TikTok.
In addition to regulatory issues, TikTok also faces increased competition from the United States. instagram reel, has recently attracted a lot of attention. Users still spend less time on Reels than on TikTok, but the gap is closing. WSJ is shown. Reel could further benefit from the UMG dispute by providing access to a broader music library.
TikTok's U.S. e-commerce ambitions are also starting to backfire, with the TikTok Shops feature facing user backlash due to cluttered feeds and intrusive ads. Some creators are concerned that the focus on shopping will detract from the core video experience.
“How do I opt out of TikTok Shop videos? I don't want to see you anymore.” brody wellmakerTikTok creator 21.4 million followers said in a TikTok video. “I'm not going to shop on the TikTok Shop. I'm going to shop on Amazon. I want the 'For You' page back. ”
Back in January, bloomberg TikTok reportedly aims to expand its U.S. e-commerce business tenfold. $17.5 billion What is the total amount of circulation this year?
world music business
