We are just days away from the popular social media app TikTok being banned in the US. January 19 is the deadline offered by the US Government to undergo a breakup from ByteDance but a sellout does not seem to be in the company’s plans.
The decision is all on the Supreme Court as TikTok refuses to give in to any offers and would much rather shut down in America. Washington already wants it gone but there is one group that most people tend to forget when it comes to being massively impacted. In case you haven’t guessed by now, it’s content creators.
These are hardworking individuals who use the app to make a living. Thanks to Appfigures Intelligence, we’re getting more insights on just how much creators will lose. The figures outlined are nearly half a billion US Dollars if the app indeed shuts down. And that is what we’re left with after both Google and Apple retain their fees.
The platform was a target for months with lawmakers calling for a ban several times in the past few years. Each time, it made it out unharmed but this time things might be very different.
TikTok makes use of in-app purchases for coin sales that help users reward creators on the platform. They can then transform that into real money after the app gets its share.
So in turn, users make in-app purchases and end up paying the creator, the app, and the store. Since it’s also made the name for being the app with the highest earnings around the globe, all three of those groups are very happy when the month ends and it’s payday.
The question remains. How happy are they or how much money do they really make? As per insights, American TikTok users bought close to $144 million coins last month alone. Out of that, the app stores get 30% which gives a total of $43M. The app then splits whatever is left with the creators. So creators get $51 million and TikTok keeps $51 million in December alone, thanks to users based in the US.
Yes, that’s only the US. Just for context, experts reminded us about how ChatGPT keeps growing like wildfire. It earned close to $41 million in net revenue last month as per estimates. That’s less than what both the App Store and Google Play Store made from TikTok in fees. So as you can see, TikTok is huge in terms of making revenue.
After seeing the stats from 2024, both Apple and Google ended up keeping $417 million of the app’s $1.4 billion estimated figure. That’s enough funds to purchase every resident in Brooklyn AirPods. Meanwhile, creators and the TikTok app kept a little under half of a billion dollars.
The money is major and Americans being left out in the dark like this might not be favorable for the economy. Hence, don’t be too surprised to see a twist in fate with last-minute shockers.
Read next: Most Downloaded Apps in December 2024: Threads Becomes Less Popular As Instagram Reigns Supreme
The decision is all on the Supreme Court as TikTok refuses to give in to any offers and would much rather shut down in America. Washington already wants it gone but there is one group that most people tend to forget when it comes to being massively impacted. In case you haven’t guessed by now, it’s content creators.
These are hardworking individuals who use the app to make a living. Thanks to Appfigures Intelligence, we’re getting more insights on just how much creators will lose. The figures outlined are nearly half a billion US Dollars if the app indeed shuts down. And that is what we’re left with after both Google and Apple retain their fees.
The platform was a target for months with lawmakers calling for a ban several times in the past few years. Each time, it made it out unharmed but this time things might be very different.
TikTok makes use of in-app purchases for coin sales that help users reward creators on the platform. They can then transform that into real money after the app gets its share.
So in turn, users make in-app purchases and end up paying the creator, the app, and the store. Since it’s also made the name for being the app with the highest earnings around the globe, all three of those groups are very happy when the month ends and it’s payday.
The question remains. How happy are they or how much money do they really make? As per insights, American TikTok users bought close to $144 million coins last month alone. Out of that, the app stores get 30% which gives a total of $43M. The app then splits whatever is left with the creators. So creators get $51 million and TikTok keeps $51 million in December alone, thanks to users based in the US.
Yes, that’s only the US. Just for context, experts reminded us about how ChatGPT keeps growing like wildfire. It earned close to $41 million in net revenue last month as per estimates. That’s less than what both the App Store and Google Play Store made from TikTok in fees. So as you can see, TikTok is huge in terms of making revenue.
After seeing the stats from 2024, both Apple and Google ended up keeping $417 million of the app’s $1.4 billion estimated figure. That’s enough funds to purchase every resident in Brooklyn AirPods. Meanwhile, creators and the TikTok app kept a little under half of a billion dollars.
The money is major and Americans being left out in the dark like this might not be favorable for the economy. Hence, don’t be too surprised to see a twist in fate with last-minute shockers.
Read next: Most Downloaded Apps in December 2024: Threads Becomes Less Popular As Instagram Reigns Supreme
