What will be the future of the China-based TikTok app under the new US President administration? Well, App Annie, an app analytics provider, has predicted that the TikTok app will surpass one billion users in 2021. App Annie, in its report, indicated that the app would reach 1.2 billion monthly active users over the next year. According to the report, the short-video sharing platform has experienced sharp growth in active users in 2020. The number of TikTok’s monthly active users has tripled since 2018. The app analytics provider also indicates that this application experienced the second-highest consumer spending among non-gaming applications during the third quarter of this year.
As per the report, while TikTok monetizes via advertisements, it also lets users transact in the application via sales of virtual gifts. These virtual gifts are used for tipping streamers on the platform. Apparently, this puts the short-video sharing platform in a strong position heading into 2021. However, we still assume that the TikTok app will be operational in the United States. And this is still in question since it might be banned in the US. In July of this year, TikTok revealed that it has 689 million monthly active users globally. TikTok is fighting a legal battle to remain operational in the US. Trump had issued an executive order that ruled that the app needed to be sold to a US-owned company or banned. Although TikTok has avoided any penalties scheduled to be imposed as part of this order, it is not yet entirely free of any impacts. A group of prominent TikTokers sought an injunction arguing that banning TikTok in the US would affect their livelihood. So, the Pennsylvania District Court has ruled against the proposed ban on the application.
However, this ruling, as well as all others, is subject to appeal by the US Government. Although the Trump administration would have pushed harder for a TikTok ban if it had won the election, with Joe Biden being now the President-elect, things would surely change significantly. Some reports indicate that the Biden administration is less likely to take a critical stance on the app as well as the concerns around TikTok’s Chinese ownership. The Denver Post has reported that the Information Technology and Innovation Foundation President, Robert Atkinson, says that the TikTok ban was ‘much more of a Trump issue.’ And additional reports suggest that the proposed Oracle-lead deal for the app is likely to come under heavy scrutiny by the Biden-lead White House. This indicates that TikTok might come out of the process unharmed.
As per the report, while TikTok monetizes via advertisements, it also lets users transact in the application via sales of virtual gifts. These virtual gifts are used for tipping streamers on the platform. Apparently, this puts the short-video sharing platform in a strong position heading into 2021. However, we still assume that the TikTok app will be operational in the United States. And this is still in question since it might be banned in the US. In July of this year, TikTok revealed that it has 689 million monthly active users globally. TikTok is fighting a legal battle to remain operational in the US. Trump had issued an executive order that ruled that the app needed to be sold to a US-owned company or banned. Although TikTok has avoided any penalties scheduled to be imposed as part of this order, it is not yet entirely free of any impacts. A group of prominent TikTokers sought an injunction arguing that banning TikTok in the US would affect their livelihood. So, the Pennsylvania District Court has ruled against the proposed ban on the application.
However, this ruling, as well as all others, is subject to appeal by the US Government. Although the Trump administration would have pushed harder for a TikTok ban if it had won the election, with Joe Biden being now the President-elect, things would surely change significantly. Some reports indicate that the Biden administration is less likely to take a critical stance on the app as well as the concerns around TikTok’s Chinese ownership. The Denver Post has reported that the Information Technology and Innovation Foundation President, Robert Atkinson, says that the TikTok ban was ‘much more of a Trump issue.’ And additional reports suggest that the proposed Oracle-lead deal for the app is likely to come under heavy scrutiny by the Biden-lead White House. This indicates that TikTok might come out of the process unharmed.
