According to the leaked documents, a ban on TikTok even for a short period will hurt the company’s global business.
TikTok, a short video format app which originates from China gained huge popularity in no time. It even beats social media giant Facebook and its subsidiaries in terms of the number of downloads in the past few quarters.
ByteDance, a Chinese technology company owns this app. In TikTok, users make videos by dancing and lip-syncing on songs or on someone’s voices.
After India, the US is the biggest market of TikTok globally. In the past two years, the number of TikTok users in the United States has skyrocketed. If we talk about the stats, in 2018 14.6 million people use TikTok mostly on a daily basis. In 2019, this number grew to 26.7 million users and in 2020 the number of active users in the US reaches 40 million.
However, due to its link with China, the US president orders to ban TikTok as the trade war continues between the two countries. The ban threat from the US president affected the TikTok user base as 40 to 50 per cent of Americans stopped using TikTok in the past two months, according to the reports.
If the ban threat continues there are chances that 80 to 90 per cent of Americans will stop using the Chinese social media. And with this, the global business if TikTok will hit hard and it affects the company’s revenue globally.
The Short video format app claims that almost 60% of the video uploads on the app are from American users. So, the company can’t survive without US citizens. There are chances that the global audience will also be reduced if there is a ban as most big TikTok stars are US citizens.
Last week, US President Donald Trump ordered a ban on all TikTok downloads in the US, but the app is still working as of now. The Trump Administration is banning the App in the US due to national security issues. The US government is fearing the leak of the sensitive data of the US citizens.
As of now, there are approximately 100 million users in the US of the video and most of them use it on a daily basis. Before the talk of the ban starts in July, Chinese social media is adding 424000 users on a daily basis to its community. As the social media app lands in hot water, their active daily users fall sharply and they also lost $10 million in revenue from the US last month.
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