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Quick takeaways
- TikTok's success can be attributed to its strategic pivot towards the lip-syncing use case and the redesign of its onboarding flow, leading to explosive growth and millions of users.
- The power of TikTok's algorithmic feed, which shows personalized content to each user, and its focus on creating an environment where both established creators and new users can succeed have contributed to its popularity and user engagement.
- ByteDance's fast follow strategy in China, leveraging its successful news and content aggregation app, Toutiao, allowed Douyin/TikTok to gain traction in the Chinese market and establish itself as a formidable competitor.
- ByteDance's acquisition of Musically helped TikTok expand its reach in the Western market and merge platforms, leading to immense popularity and positioning itself as a major competitor to social media giants.
Deep dives
The rise of musically as a short-form video platform
Musically, later known as TikTok, started as a broad short-form video platform. However, they observed a spike in downloads on Thursday nights and realized the popularity of lip-sync battles on TV shows. They decided to pivot and focus on the lip-syncing use case, redesigning the app's onboarding flow and surfacing lip-syncing videos on the platform. This strategic move led to explosive growth for Musically, becoming the number one app in the US App Store and gaining millions of users.
The success factors of TikTok in the social media landscape
TikTok's success can be attributed to several key factors. Firstly, they utilized the power of the algorithmic feed, which shows personalized content to each user based on their preferences, rather than relying on who they follow. This ensures that users are constantly engaged with content that appeals to them and keeps them coming back. Additionally, TikTok focused on creating an environment where both established creators and new users could succeed, fostering a sense of social and economic mobility. Finally, TikTok's innovative business model, centered around virtual gifting and tipping, allowed creators to monetize their content and build a middle class of successful creators on the platform.
The expansion into China and competition from ByteDance
Musically faced challenges when entering the Chinese market, as they had to navigate a different business model and a unique political environment. ByteDance, the parent company of TikTok, launched their own short-form video app called Douyin in China, which directly competed with Musically. Douyin leveraged their successful news and content aggregation app, Toutiao, and applied its advanced algorithmic recommendations to the short-form video format. This fast follow strategy allowed Douyin/TikTok to gain traction in the Chinese market and establish itself as a formidable competitor.
The failed acquisition talks with Facebook
In 2016, Musically was in serious acquisition talks with Facebook, and a team from Facebook even visited Musically's headquarters. However, the deal fell through for unknown reasons. This was a significant moment for Musically, as it reaffirmed their resolve to remain independent and continue growing on their own.
TikTok's Journey to Becoming a Global Phenomenon
TikTok, originally launched as Douyin in China, faced the challenge of competing against the well-established app Musically. However, when Douyin launched internationally as TikTok, it quickly gained popularity and surpassed Musically's user base. The success of TikTok can be attributed to its ability to provide a native experience for users in each country, unlike other apps like WeChat. By merging the platforms of Douyin and TikTok, ByteDance, the parent company of TikTok, was able to create a strong global network effect. TikTok now has millions of monthly active users and has become a major threat to social media giants like Facebook and Instagram.
The Acquisition of Musically by ByteDance
ByteDance's acquisition of Musically was a strategic move to gain a foothold in the Western market, especially in the United States. With Musically's passionate and organically grown user base, ByteDance saw an opportunity to expand its reach. The acquisition allowed ByteDance to merge the platforms of Douyin and Musically, creating a stronger and more competitive product for the global market. The combined platforms of TikTok and Musically quickly gained immense popularity, attracting millions of users worldwide. This acquisition not only helped ByteDance establish a global presence but also positioned TikTok as a formidable competitor to social media giants.
TikTok's Rapid Growth and Controversies
TikTok's rapid growth and widespread adoption have made it a significant player in the social media landscape. With millions of monthly active users worldwide, TikTok has garnered a large and engaged user base. Its unique approach of focusing on short-form videos and content recommendations based on algorithms has set it apart from traditional social media platforms. However, TikTok has also faced controversies, including concerns about data privacy and national security due to its connection with ByteDance, a Chinese company. These controversies have raised questions about the impact and future of TikTok, especially in relation to regulations and potential interference from governments.
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We take Acquired to the Old Town Road to cover the amazing story behind the biggest global sensation of 2019 — and the highest valued private startup in the world — TikTok. How did a mid-30 year old UX architect at enterprise software giant SAP wind up creating Gen Z’s favorite social app that’s now rivaling Instagram in global MAU? Why is a 2017 merger of two Chinese companies being branded a US national security threat and retroactively placed under review by CFIUS? And perhaps most importantly, why is TikTok such an important product & technology innovation that all of us should be learning from? Tune in for all the answers!
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Carve Outs:
- Ben: Track 34 on Ghosts IV by Nine Inch Nails: https://www.youtube.com/watch?v=XF_ceFugJjQ
- David: Nintendo Switch Lite https://www.nintendo.com/switch/lite/ and Knives Out https://www.youtube.com/watch?v=qGqiHJTsRkQ
Sources:
- https://www.nytimes.com/2019/11/18/technology/tiktok-alex-zhu-interview.html
- https://www.reuters.com/article/us-bytedance-tiktok-exclusive/exclusive-chinas-bytedance-moves-to-ringfence-its-tiktok-app-amid-u-s-probe-sources-idUSKBN1Y10OH
- https://www.nytimes.com/interactive/2019/10/10/arts/TIK-TOK.html?action=click&module=RelatedLinks&pgtype=Article
- https://www.nytimes.com/2019/10/19/style/high-school-tiktok-clubs.html?action=click&module=RelatedLinks&pgtype=Article
- https://www.nytimes.com/2019/11/03/technology/tiktok-facebook-youtube.html?action=click&module=RelatedLinks&pgtype=Article
- https://www.nytimes.com/2018/01/02/business/china-toutiao-censorship.html
- https://www.nytimes.com/2016/09/17/business/media/a-social-network-frequented-by-children-tests-the-limits-of-online-regulation.html
- https://www.youtube.com/watch?v=wTyg2E44pBA
- https://www.linkedin.com/in/keepsilence/
- https://www.vox.com/culture/2018/12/10/18129126/tiktok-app-musically-meme-cringe
- https://www.theverge.com/tldr/2018/1/26/16937712/karma-is-a-bitch-riverdale-kreayshawn-meme
- https://www.theverge.com/2018/8/2/17644260/musically-rebrand-tiktok-bytedance-douyin
- https://www.rollingstone.com/music/music-features/tiktok-video-app-growth-867587/
- https://en.wikipedia.org/wiki/Musical.ly
- https://en.wikipedia.org/wiki/ByteDance
- https://en.wikipedia.org/wiki/TikTok
- https://www.businessinsider.com/what-is-musically-2016-5
- https://supchina.com/2017/09/13/can-pop-music-connect-teens-china-world-musical-ly-co-founder-louis-yang-wants-find/
- https://supchina.com/podcast/ep-28-the-worlds-most-valuable-startup-bytedance-maker-of-tiktok-toutiao/
- https://supchina.com/podcast/ep-55-kuaishou-the-anti-douyin-tiktok/
- https://supchina.com/podcast/ep-56-not-just-tiktok-a-short-history-of-chinese-short-video-abroad/
- https://supchina.com/2019/09/25/the-difference-between-tiktok-and-douyin/
- https://pandaily.com/toutiaos-buy-1b-purchase-musical-ly/
- https://www.reuters.com/article/us-china-internet-livestreaming-idUSKBN17E0EV
- https://www.youtube.com/watch?v=wTyg2E44pBA
- https://www.youtube.com/watch?v=ey15v81pwII
- https://www.scmp.com/tech/big-tech/article/3038639/alex-zhus-journey-failed-startup-tiktok-chief
- https://www.buzzfeednews.com/article/ryanmac/zuckerberg-musically-tiktok-china-facebook
- https://techcrunch.com/2019/11/12/instagram-reels/
- https://www.techinasia.com/douyin-rise-in-china
- https://www.youtube.com/watch?v=ptKqFafZgCk
- https://technode.com/2017/05/17/kwai-kuaishou-chinas-biggest-social-video-sharing-app/
- https://technode.com...
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