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TikTok generated $115 million solely from in-app purchases during October, per a data analysis firm. The vast majority of the revenue came from its Chinese version, Douyin.
App-focused data-analysis company Sensor Tower recently revealed the strong financial performance that TikTok (and Douyin) turned in during October. Per these findings, the ByteDance-owned platform made in excess of $115 million – over six times the figure delivered throughout the same period in 2019 – and out-earned all other non-gaming applications, including number-two YouTube and the third-ranking Tinder. Tencent Video secured the fourth slot.
Of particular note is that 86 percent of TikTok’s October revenue is attributable to China-based Douyin users, against eight percent from the U.S. (about $9.2 million) as well as two percent from Turkey. Interestingly, the Middle Eastern nation of more than 84 million residents continues to account for a substantial portion of new TikTok downloads, including 1.3 million installs from the Google Play store in September.
Ahead of TikTok’s potential U.S. ban – which could well be placed on the backburner as key states like Pennsylvania, Georgia, Nevada, and Arizona continue to count ballots for the 2020 presidential race – Douyin’s considerable earning potential is worth bearing in mind. Moreover, the figure attests to TikTok’s strong global reach and provides additional context to its recent moves, including a massive deal with Sony Music earlier this week. Plus, last month saw the quick-growing platform and Dutch collecting society Buma/Stemra lock down a multiyear agreement of their own.
Nevertheless, TikTok continues to face obstacles – and controversy – independent of the possible stateside prohibition.
Having paid $1.1 million to settle a class-action lawsuit centering on child-privacy violations late last year, the app was named in another class-action complaint, also stemming from purported violations of users’ personal data, back in May. And just this week, a BBC investigation found that the platform had initially failed to ban a known child predator – despite receiving documented proof of the individual’s alleged sexual harassment.
On the competition front, multiple companies have taken steps to gain an edge over TikTok, which the Indian government banned (along with 59 other apps with Chinese ties) in summer. Instagram has expanded the availability of “Reels,” and Snapchat unveiled a number of major music-licensing deals in August, which culminated with the October release of Sounds on Snapchat.
Lastly, Triller has worked to fill the video-sharing void that TikTok left in India. Triller has also levied a patent-infringement suit against the app, though TikTok and its legal team have denied the claims.
What are folks purchasing in the app?
I’m wondering this as well. Great article otherwise—just would like to know the nuts and bolts of how these microtransactions work.
In such a revenue-starved industry, those are shocking #s!
This is the company and app that Trump said he was shutting down. Well, add that to yet another Trump failure and unfulfilled promise. What a loser that guy is and was and always will be. He should go to jail.
This is the company and app that Trump said he was shutting down. Well, add that to yet another Trump failure and unfulfilled promise. What a loser that guy is and was and always will be. He should go to jail.