CNN
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On the eve of a high-profile audience on TikTok this week, the company said it now has more than 150 million monthly active users in the United States. But after the hours-long heated hearing, filled with lawmakers telling TikTok’s CEO that the app should be banned, some may now be wondering where all those users will go next if the social network disappears.
The answer: probably other major US tech platforms.
Many of the greatest WE Social media companies have spent years copying features from TikTok, which would make it easier for its creators and users to abandon the platform. Instagram, for example, introduced its own short form video tool in 2020 called Reels. Snapchat has Spotlight, YouTube has Shorts, and even Spotify has a TikTok-like video feed with recommended music and other content.
“Obviously, if a ban is approved and enforced, content, user counts and engagement, and likely ad dollars for Snap, Instagram and YouTube will increase,” said Ali Mogharabi, an analyst at the company. Morningstar Financial Services, in a recent study of investors. note.
In other words, Washington’s efforts to clamp down on TikTok on national security grounds could ultimately benefit some of the same US tech companies that Washington has scrutinized for other reasons, including their market dominance and impact on teens. .
Even if a ban doesn’t happen, it could still benefit those companies. “This uncertainty could cause some TikTok content creators to focus more on, and possibly start pushing, their audiences to other social media platforms,” Mogharabi said.
At least one company is already seeing a boost. Snap’s stock rose in the days before TikTok appeared before Congress amid further talk among federal officials over a ban on TikTok.
During Thursday’s hearing, TikTok CEO Shou Chew was challenged by lawmakers who expressed deep skepticism about his company’s attempts to protect US user data and allay concerns about his ties with China. TikTok’s parent company, ByteDance, is based in Beijing and subject to China’s data request laws that could require it to hand over user data to the government.
Republican Washington Rep. Cathy McMorris Rodgers, chair of the House Energy and Commerce Committee, opened Thursday’s hearing by telling Shou, “Your rig should be banned.” As the hearing unfolded, House Speaker Kevin McCarthy said he supported legislation that would effectively ban TikTok and Secretary of State Antony Blinken said TikTok should be “ended somehow.” of another”.
If that happens, Lian Jye Su, an analyst at ABI Search, thinks users will follow their favorite TikTok influencers and content creators wherever they go.
“Most users will flock to where content creators go next,” Su said. “Instagram, Snapchat and Youtube Shorts stand to benefit the most as content creators will always prefer places where they can monetize their content.”
Small platforms also have a chance to gain traction, Su said. Short-form video platform Triller, which is believed to have more than 450 million users, is actively courting popular TikTok content creators with cash bonuses, partnerships and other incentives to switch platforms. Meanwhile, Dubsmach – a short-form video platform owned by Reddit – and Clash, which lets people create 21-second looping videos, are other platforms that could be increasingly attractive to viewers. creators.
For now, talking about a TikTok ban may still be premature. The Biden administration has threatened to ban TikTok in the United States unless the app’s Chinese owners agree to divest their share of the social media platform.
“I highly doubt this app will go dark,” Rep. Raja Krishnamoorthi told CNN during a primetime special on TikTok on Thursday. He said a sale is very likely.
If the app is sold, it could complicate things for some US tech platforms.
“For Snap, which has a weaker network effect than Meta, a possibly more reliable US TikTok may make it harder to attract users or prevent them from migrating to TikTok,” Moghaharbi wrote in the note. ‘investor.
cnn