A Tik Tok was the third-ranking apart from the Tinder and Youtube that has received the highest revenue during the pandemic. The stay at home in the time of pandemic worked as a boon for the high accretion in the revenue of this particular Chinese app. Following the banning of the app in India, they lost about 200 million users which cause a major decline for the Byte Dance company. Despite the ban with a loss in billions comparatively to other apps, it had been the highest scorer. Still ranks to the top with the loss of users from India. India banned Tik Tok, about one-third of the users are stopped from using the app that will lift their revenue graph.
US to purchase Tik Tok
The US looks forward to purchasing the app even after China experiences the drop. Microsoft confirmed to look forward to buying it and China’s Byte dance will help them to complete the deal. The revenue acquisition observed even after the banning was a great deal for the US to purchase it. Walmart and Microsoft are teamed together to purchase it in 20$ billion to 30$ billion while Oracle bids for the next successor of Tik Tok after the Byte Dance.
Though before settling with the highest bidder, the contract was denied by the Chinese government. The issue was with the Artificial Intelligence technologies, that they have to provide or export to the US movement for the execution of the app. Though Tik Tok is not banned in US, the president has mentioned banning the app if it is not sold to the US. Major companies are bidding on the app as its value does not seem to decrease ever after a sumptuous drop in the users.
US targets to bring home the revenue even after a high loss in users as it has provided the gradual amount 23 % increase with through the Chinese app as shown in Sensor tower. After the ban of the strong video app, Indian apps Roposo, Zili, and Dubmash observed the installation peak to 155%.
What is the source of revenue for the Tik Tok app? The app earns through the ads and the downloaded emojis available in the app. The best feature that worked in this app was the repurposing of the video clips by adding some different audios, a great stream to create memes. This has built a large platform of users of all groups of people from India.
Legal ban drops revenue to 6$ billion in 2020
But after the legal ban of the TikTok app in India, in 2020 in July there was a loss of 6$ billion to the unique Chinese app. The issues on the videos in the app had already created a reason to ban which later turned to become intense during the pandemic. When the entire world was suffering from a drop in the economy, the Tik Tok app was providing a profit to the Chinese economy.
While this app will always appear as a hot cake when served to any plate!