The media and social platforms sectors are intermingled. The main players position themselves differently but it seems that at least for the current round we have a winner — TIKTOK.
Some data from recent years :
Netflix invests an average of $17 billion in content. TikTok does not invest at all in original content but knows how to create a revenue infrastructure for content producers.
Facebook’s annual revenue will be more than $120 billion. TikTok will end the year with $10 billion in revenue
TikTok is growing by hundreds of percent a year -it’s been at the top of the app download table for the past two years, and by the end of this year TikTok will reach 1.5 billion users.
TikTok does not act as a social network — it positions itself as a video streaming platform of a certain type of content- short, produced by the people, and is supported by a good algorithm that allows everyone to effectively reach their relevant content.
TikTok are the first to solve the “ personal shelf” challenge by using a smart and efficient algorithm that provides the customer with a “personal and limited content library. “ People love it. They don’t come to TikTok to talk to friends, they come to TikTok to consume the content that suits them, most advanced brands have figured it out and are now starting to learn how to use this platform correctly.
Another matter has to do with TikTok’s relationship with the content producers. TikTok understands the term
DDP — Detachable Digital Publisher
A detachable content manufacturer means that traditional or independent content creators or brands that produce content should distribute their content where their customers stay and live.
TikTok invites content producers to open a “DDP channel” on top of TikTok platform and make money out of it through diverse monetization options.
In that sense, they understand what Facebook is struggling to understand– the content producers are the most important asset for these platforms.
