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Just what would an enterprise company like Microsoft or Oracle do with TikTok?

By now you’ve probably heard that under pressure from the current administration, TikTok owner ByteDance is putting the viral video service up for sale, and surprisingly a couple of big name enterprise companies are interested. These organizations are better known for the kind of tech that would bore the average TikTok user to tears. Yet, stories have persisted that Microsoft and even Oracle are sniffing around the video social network.

As TechCrunch’s Danny Crichton pointed out last week, bankers involved in the sale have a lot of motivation to leak rumors to the press to drive up the price of TikTok. That means none of this might be true, yet the rumors aren’t going away. It begs the question: Why would a company like Oracle or Microsoft be interested in a property like TikTok?

For starters, Oracle is a lot more than the database company it was known for in the past. These days, it has its fingers in many, many pies, including marketing automation and cloud infrastructure services. In April, as the pandemic was just beginning to heat up, Zoom surprised just about everyone when it announced a partnership with Oracle’s cloud arm.

Oracle isn’t really even on the board when it comes to cloud infrastructure market share, where it is well behind rivals AWS, Microsoft, Google, Alibaba and IBM, wallowing somewhere in single-digit market share. Oracle wants to be a bigger player.

Meanwhile, Microsoft has successfully transitioned to the cloud as well as any company, but still remains far behind AWS in the cloud infrastructure market. It wants to close the gap with AWS, and owning TikTok could get it closer to that goal faster.

Simply put, says Holger Mueller, an analyst at Constellation Research, if Oracle combined Zoom and TikTok, it could have itself a couple of nice anchor clients. Yes, like the proverbial mall trying to attract Target and Nordstrom, apparently Oracle wants to do the same with its cloud service, and if it has to buy the tenant, so be it.

“TikTok will add plenty of load to their infrastructure service. That’s what matters to them with viral loads preferred. If Microsoft gets TikTok it could boost their usage by between 2% and 5%, while for Oracle it could be as much 10%,” he said. He says the difference is that Oracle has a much smaller user base now, so it would relatively boost its usage all the more.

As Mueller points out, with the government helping push TikTok’s owner to make the sale, it’s a huge opportunity for a company like Oracle or Microsoft, and why the rumors have weight. “It’s very plausible from a cloud business perspective, and plausible from a business opportunity perspective created by the U.S. government,” he said.

While it could make sense to attract a large user base to your systems to drive up usage and market share in that way, Brent Leary, founder and principal analyst at CRM Essentials, says that just by having a large U.S. tech company buy the video app could make it less attractive to the very users Microsoft or Oracle is hoping to capture.

“An old-guard enterprise tech company buying Tiktok would likely lessen the appeal of current users. Younger people are already leaving Facebook because the old folks have taken it over,” Leary said. And that could mean young users, who are boosting the platform’s stats today, could jump ship to whatever is the next big social phenomenon.

It’s worth pointing out that just today, the president indicated support for Oracle, according to a Wall Street Journal report. The publication also reported that Oracle’s billionaire owner Larry Ellison is a big supporter of the president, having thrown him a fundraiser for his reelection bid at his house earlier this year. Oracle CEO Safra Catz also has ties to the administration, having served on the transition team in 2016.

It’s unclear whether these companies have a genuine interest, but the general feeling is someone is going to buy the service, and whoever does could get a big boost in users simply by using some percentage of their cash hordes to get there. By the way, another company with reported interest is Twitter. Certainly putting the two social platforms together could create a mega platform to compete more directly with Facebook.

You might see other big names trying to boost cloud infrastructure usage, like IBM or Google, enter the fray.  Perhaps even Amazon could make an offer to cement its lead, although if the deal has to go through the federal government, that makes it less likely, given the tense relationship between Amazon CEO Jeff Bezos and the president that surfaced during the Pentagon JEDI cloud contract drama.

Apple has already indicated that in spite of having the largest cash on hand of any company, with over $193 billion, give or take, it apparently isn’t interested. Apple may not be, but somebody surely is, even some companies you couldn’t imagine owning a property like this.

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TikTok announces a deal with UnitedMasters, its first music distribution partnership

Though TikTok’s future in the U.S. remains uncertain, the company announced this morning its first music distribution partnership, with indie music distributor UnitedMasters. The deal will allow artists on TikTok to tap into the platform’s ability to make their music go viral, then distribute their songs directly to other music streaming services, like Spotify, Apple Music/iTunes, SoundCloud and YouTube.

The deal allows indie artists to effectively circumvent traditional record labels by reaching young music fans on the social video app, then translate that to charting success.

Already, TikTok has proven its capabilities in this area, having helped push little-known or undiscovered artists to further growth, including Lil Nas X, Ambjaay, StaySolidRocky, Powfu, BENEE, Y2K, bbno$ and others, the company noted in an announcement about the new deal. Meanwhile, artists like Curtis Roach, Curtis Waters, Breland, Tai Verdes, BMW Kenny and others have used TikTok to promote their music. Some, like ppcocaine and Avenue Beat, preview original music directly on the platform. Several emerging artists, like Shuba, Blu DeTiger and Kid Sistr, have even used TikTok as a platform for creative performances.

UnitedMasters, meanwhile, has helped launch the careers of artists like platinum-selling rapper NLE Choppa, plus Lil Tecca, Tobe Nwigwe, Lil XXEL and others. In the past 18 months, it has grown its lineup to over 400,000 artists who have a combined 5 billion streams and over a half million distributed tracks.

UnitedMasters takes a 10% share of revenue for music it distributes, and allows artists to retain their rights. It also works to facilitate relationships between artists and brands. According to the company’s website, UnitedMasters currently works with brands like the NBA, Bose, AT&T, the NFL and others. A newer program, called “Select,” lets UnitedMasters artists pay $5/month instead of the royalty split.

TikTok says its new agreement with UnitedMasters will also involve promoting their artists on its video platform. That means artists will have more opportunities to reach new fans who could then, in turn, use the artists’ music in their videos. TikTok will also add the music from UnitedMasters’ artists, with their permission, to its Commercial Music Library. This catalog gives verified businesses access to royalty-free music for use with their promotional content.

“TikTok artists who are creating music in their bedrooms today will be featured in the Billboard charts tomorrow,” said Ole Obermann, global head of Music at TikTok, in a statement. “Our mission is to help those artists achieve their creative potential and success. This partnership with UnitedMasters gives us a turn-key solution to help artists who are born on TikTok to reach their fans on every music service.”

Trying to work around the labels is a tricky prospect, other music services have found. Spotify, for example, tried offering a tool that would have allowed indie artists to upload their own music directly to its streaming service. But the tool was shut down in less than a year’s time, after beta testing, as its existence complicated Spotify’s label negotiations.

TikTok, however, has different sorts of licensing deals with the major labels because it’s not a streaming service for music, nor a platform for watching official music videos, like YouTube and now, Facebook. Instead, its music deals are reportedly shorter-term agreements than those the labels strike with other tech companies, a Billboard report said. The deals give the video platform the right to use 30-second clips of the record labels’ songs, not full tracks. To date, many of TikTok’s music deals are separate from those its parent company ByteDance inked for its streaming music service, Resso. (A deal with Merlin was a recent exception, however.)

Because of the complicated nature of these sorts of negotiations, it’s unclear how the major labels will react to what appears to be a way for TikTok to eventually route around their cut. By promoting indie artists to help them achieve viral success without a traditional label’s involvement, TikTok could become a launching pad for artists who don’t want a label deal. Instead, TikTok artists would gain access to fans and, eventually, the resulting revenue potential that comes with having a large audience.

This likely won’t go down well with labels, who have already been pushing TikTok to find more ways to generate revenue for music rights holders, as Billboard’s report had noted.

“If you are a musical artist, TikTok is the best place for your music to go viral and UnitedMasters is the best place to sustain it while retaining full ownership of your work,” said Steve Stoute, CEO and founder of UnitedMasters, in a statement about the TikTok partnership. “By combining the two, we create the platform for tomorrow’s stars who will be famous, fiercely independent and wealthy.”

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Equity Monday: The TikTok saga rolls on as earnings season starts to wrap

Hello and welcome back to Equity, TechCrunch’s venture capital-focused podcast where we unpack the numbers behind the headlines.

This is Equity Monday, our weekly kickoff that tracks the latest big news, chats about the coming week, digs into some recent funding rounds and mulls over a larger theme or narrative from the private markets. You can follow the show on Twitter here, and myself here, and don’t forget to check out last Friday’s episode.

This morning was a bit of a grab-bag of news, but of course we had to start off with the biggest story from the past few weeks:

All that and earnings season is largely behind us, leaving tech companies generally unscathed. So, the good times will persist for a while yet. Have a great week!

Equity drops every Monday at 7:00 a.m. PT and Friday at 6:00 a.m. PT, so subscribe to us on Apple PodcastsOvercastSpotify and all the casts.

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Daily Crunch: Microsoft-TikTok acquisition inches closer to reality

A possible Microsoft TikTok acquisition is causing plenty of drama, we review Google’s new budget Pixel and SpaceX’s Crew Dragon returns to Earth. Here’s your Daily Crunch for August 3, 2020.

Microsoft-TikTok acquisition inches closer to reality

This weekend, Microsoft confirmed reports that it’s in talks to acquire TikTok, the popular mobile video app currently owned by Chinese company ByteDance. It sounds like the outcome of those talks may ultimately have less to do with Microsoft and more with President Donald Trump.

“Following a conversation between Microsoft CEO Satya Nadella and President Donald J. Trump, Microsoft is prepared to continue discussions to explore a purchase of TikTok in the United States,” the company said in a statement. “Microsoft fully appreciates the importance of addressing the President’s concerns. It is committed to acquiring TikTok subject to a complete security review and providing proper economic benefits to the United States, including the United States Treasury.”

And indeed, Trump said today that he’s not opposed to an acquisition, but that “a very substantial portion of that price is going to have to come into the Treasury of the United States.” Meanwhile, Chinese internet users are calling ByteDance’s CEO a traitor.

The tech giants

Google’s budget Pixel 4a addresses its premium predecessor’s biggest problem — Brian Heater reviews the new $349 handset.

Facebook launches commerce and connectivity-focused accelerator programs — Facebook’s Commerce Accelerator will select 60 startups from the EMEA and LATAM regions, while Connectivity will feature 30 startups from LATAM and North America.

Adobe’s plans for an online content attribution standard could have big implications for misinformation — The project was first announced last November, and now the team has a whitepaper going into the nuts and bolts about how its system would work.

Startups, funding and venture capital

YC-backed Artifact looks to make podcasts more personal — Using professionally contracted interviewers, Artifact conducts short interviews with a person’s closest friends or family and turns them into a personal podcast.

Founded by a lifelong house-flipper, Inspectify is a marketplace for home inspections and repairs — Through the platform, buyers can instantly book inspections and receive repair estimates.

Mobile banking startup Varo is becoming a real bank — The company announced that it has been granted a national bank charter from the Office of the Comptroller of the Currency and secured regulatory approvals from the FDIC and Federal Reserve to open Varo Bank, N.A.

Advice and analysis from Extra Crunch

The essential revenue software stack — Tim Porter and Elise La Cava of Madrona Ventures outline the set of services used by sales, marketing and growth teams across their portfolio to identify and manage their prospects and revenue.

Is the 2020 SPAC boom an echo of the 2017 ICO craze? — Alex Wilhelm looks at two new pieces of SPAC news.

After Shopify’s huge quarter, BigCommerce raises its IPO price range — BigCommerce now intends to price its IPO between $21 and $23 per share.

(Reminder: Extra Crunch is our subscription membership program, which aims to democratize information about startups. You can sign up here.)

Everything else

SpaceX and NASA successfully return Crew Dragon spacecraft to Earth with astronauts on board — SpaceX’s Crew Dragon appears to have performed exactly as intended throughout the mission, handling the launch, ISS docking, undocking, de-orbit and splashdown in a fully automated process that kept the astronauts safe and secure throughout.

Original Content podcast: Netflix’s ‘Say I Do’ offers a wedding-focused twist on the ‘Queer Eye’ formula — I’m not someone who cares about weddings, but this show made me cry. Multiple times!

The Daily Crunch is TechCrunch’s roundup of our biggest and most important stories. If you’d like to get this delivered to your inbox every day at around 3pm Pacific, you can subscribe here.

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TikTok is a marketer’s shiny new toy, but how do you optimize campaigns?

Tiffany Ou
Contributor

Tiffany Ou is the general manager, Americas at Nativex, where she leads go-to-market strategies for leading game and app developers.

TikTok is a rising star in the social media category. Since its launch three years ago, the company has secured 800 million active users worldwide. That makes TikTok ninth in terms of social network sites, ahead of LinkedIn, Twitter, Pinterest and Snapchat. As more people start using the platform and remain engaged, it goes without saying that TikTok is an increasingly desirable destination for marketers.

But outside the sheer numbers, is there any real sustenance to the platform from a marketing perspective, or is this just a temporary fad brands are flocking to? Here’s a look into what makes TikTok unique through a marketer’s lens, and a few things the platform can improve on to make it a permanent option for brands looking to explore mobile.

Better user experiences lead to more unique advertising

Digital advertising is only as effective as a platform’s user experience — that fact presents a unique differentiator for TikTok. Being in 2020, where content creators continue to blossom, TikTok provides an opportunity for literally anyone to reach millions of people with their content. It is a “platform for the people,” as the algorithm sends user content to groups of 5-10 people, and based on the engagement, it will continue sending it out to the masses. What’s interesting here is that it resembles an early era of Instagram, where all content was user-generated.

Additionally, unlike other leading social media channels, a user is focused on one piece of content at a time. TikTok videos take up the entire screen, which leads to more engagement and genuine interest from the viewer. That said, creative plays an incredibly important role in every campaign you run on the platform, especially when trying to grab the user amid a mass of alternative entertainment options. The TikTok audience is hyperfocused on viewing organic, visually stimulating content that could be the next big meme or viral sensation.

Creative is the key

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YouTube’s latest experiment is a TikTok rival focused on 15-second videos

YouTube is taking direct aim at TikTok. The company announced on Wednesday it’s beginning to test a new feature on mobile that will allow users to record 15-second long multi-segment videos. That’s the same length as the default on TikTok as well as Instagram’s new TikTok clone, Reels.

Users in the new YouTube experiment will see an option to “create a video” in the mobile upload flow, the company says.

Similar to TikTok, the user can then tap and hold the record button to record their clip. They can then tap again or release the button to stop recording. This process is repeated until they’ve created 15 seconds worth of video footage. YouTube will combine the clips and upload it as one single video when the recording completes. In other words, just like TikTok.

The feature’s introduction also means users who want to record mobile video content longer than 15 seconds will no longer be able to do so within the YouTube app itself. Instead, they’ll have to record the longer video on their phone then upload it from their phone’s gallery in order to post it to YouTube.

YouTube didn’t provide other details on the test — like if it would later include more controls and features related to the short-form workflow, such as filters, effects, music, AR, or buttons to change the video speed, for example. These are the tools that make a TikTok video what it is today — not just the video’s length or its multi-segment recording style.

Still it’s worth noting that YouTube has in its sights the short-form video format popularized by TikTok.

This would not be the first time YouTube countered a rival by mimicking their feature set with one of its own.

The company in 2017 launched an alternative to Instagram Stories, designed for the creation and sharing of more casual videos. But YouTube Stories wouldn’t serve the TikTok audience, as TikTok isn’t as much about personal vlogs as it is about choreographed and rehearsed content. That demands a different workflow and toolset.

YouTube confirmed the videos in this experiment are not being uploaded as Stories, but didn’t offer details on how the 15-second videos would be discoverable on the YouTube app.

The news of YouTube’s latest experiment arrived just ahead of TikTok’s big pitch to advertisers at this week’s IAB NewFronts. TikTok today launched TikTok For Business, its new platform aimed at brands and marketers looking to do business on TikTok’s app. From the new site, advertisers can learn about TikTok’s ad offerings, create and track campaigns, and engage in e-learning.

YouTube says its new video test is running with a small group of creators across both iOS and Android. A company spokesperson noted it was one of several tests the company had in the works around short-form video.

“We’re always experimenting with ways to help people more easily find, watch, share and interact with the videos that matter most to them. We are testing a few different tools for users to discover and create short videos,” a YouTube spokesperson said. “This is one of many experiments we run all the time on YouTube, and we’ll consider rolling features out more broadly based on feedback on these experiments,” they added.

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Zigazoo launches to be a ‘TikTok’ for kids, surpasses 100,000 uploads and downloads

Like many parents, Zigazoo founder Zak Ringelstein worries about his children’s screen time. His worries only grew when COVID-19 led to school shutdowns and kids came home to a world of remote learning. Now, as lockdowns extend, Ringelstein is learning to embrace screen time as a way to sneak education and entertainment into his kids’ digital diet.

Ringelstein, the former founder of UClass (acquired in 2015), launched Zigazoo, which he describes as a “TikTok for kids.”

Zigazoo is a free app where kids can answer short video-based exercises that they can answer through video and share responses with friends. Exercises range from how to create a baking soda volcano to making fractions out of food, and targets kids from preschool to middle school.

To ensure the app’s privacy, Ringelstein says that parents should be the primary users of the app. Users have to accept a friend request in order for their content to be seen, a move Ringelstein sees as key to avoiding bad actors or potential bullying.

Additionally, Zigazoo uses an API through SightEngine to moderate content.

Ringelstein’s first users were his own kids, a test he says was very rewarding.

Ringelstein’s son participating in a Zigazoo prompt.

The testing process made him realize that kids like to create longer videos, and watch smaller videos, so Zigazoo is figuring out an attention span for viewing. Currently, average time on site per user has gone up to 19 minutes and 43 seconds per day.

Ringelstein pointed to “Sesame Street” as his inspiration. Mixing education and entertainment has proven successful for a number of businesses. Kids were drooling in front of the screen watching the characters of “Sesame Street,” spending mindless hours staring at the television set, he recalls.

“The creators of Sesame Street…used the medium to educate kids and entertain them at the same time,” Ringelstein said. Vox described “Sesame Street” as a “bedrock for educational television,” bringing loved characters to the table with former First Lady Michelle Obama or using a silly song to teach kids about recycling.

In one month, Zigazoo has had 100,000 videos uploaded to and downloaded from its site.

While Zigazoo claims to be a “TikTok” for kids, it is competing with the platform itself. Some teachers have turned to TikTok to create lessons on solar cell systems and experiments.

Others are putting together guides of “kid friendly” TikTok creators. And TikTok itself recently let parents set restrictions on content, DMs and screen time for their kids.

Video-based learning is a better way for students to engage actively in an educational activity, versus passively reading a paragraph from a Google doc, according to Ringelstein.

Combining education with entertainment comes with a set of risks around child safety. Last March, The New York Times wrote a story about how “kidfluencers” has grown as a concept, where parents put their kids online, touting brands, and make money off of it. The resulting ethical concerns are why Ringelstein is confident that Zigazoo is needed.

“Zigazoo is a not a kid play date smack dab in the middle of an adult party like YouTube and TikTok, it is a universe tailor-made for kid safety, learning and enjoyment,” he said.

Ringelstein sees Zigazoo’s “friend” versus “follow” feature as key to the safety of kids: Unlike TikTok, where there is a public feed and users can follow everyone, Zigazoo requires users to opt-in to being followed, similar to Facebook.

The partnerships will allow Zigazoo to post verified content using favorite and well-known characters to teach kids about the subjects they care about. And in a world where digital detoxes are no longer a reality, a smarter screen-time activity seems much needed.

Recently, Zigazoo partnered with The American Federation of Teachers for a capstone project directed at millions of K-12 students. Students are invited to submit a video using Zigazoo to encapsulate their learning experience over the past school year, which AFT says is a “far better way to sum up learning than a high-stakes test.”

This summer Ringelstein is launching “Zigazoo Channels” with a select group of major children’s entertainment companies, podcasts, museums, libraries, zoos, social media influencers and more.

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Daily Crunch: Disney’s streaming chief departs for TikTok

TikTok enlists a big name from Disney as its new CEO, Walmart is shuttering its Jet e-commerce brand and EasyJet admits to a major data breach.

Here’s your Daily Crunch for May 19, 2020.

1. Disney streaming exec Kevin Mayer becomes TikTok’s new CEO

Mayer’s role involved overseeing Disney’s streaming strategy, including the launch of Disney+ last fall, which has already grown to more than 50 million subscribers. He was also seen as a potential successor to Disney CEO Bob Iger; instead, Disney Parks, Experiences and Products Chairman Bob Chapek was named CEO in a sudden announcement in February.

Mayer was likely an attractive choice to lead TikTok not just because of his streaming success, but also because hiring a high-profile American executive could help address politicians’ security concerns about the app’s Chinese ownership.

2. Walmart says it will discontinue Jet, which it acquired for $3B in 2016

Walmart tried to put a positive spin on the news, saying, “Due to continued strength of the Walmart.com brand, the company will discontinue Jet.com. The acquisition of Jet.com nearly four years ago was critical to accelerating our omni strategy.”

3. EasyJet says 9 million travel records taken in data breach

EasyJet, the U.K.’s largest airline, said hackers have accessed the travel details of 9 million customers. The budget airline said 2,200 customers also had their credit card details accessed in the data breach, but passport records were not accessed.

4. Where these 6 top VCs are investing in cannabis

The results paint a stunning picture of an industry on the verge of breaking away from a market correction. Our six respondents described numerous opportunities for startups and investors, but cautioned that this atmosphere will not last long. (Extra Crunch membership required.)

5. Brex brings on $150M in new cash in case of an ‘extended recession’

Where upstart companies aren’t cutting staff, they are often reducing spend — which is bad news for Brex, since it makes money on purchases made through its startup-tailored corporate card. But co-founder Henrique Dubugras seems largely unbothered on how the pandemic impacts Brex’s future.

6. Popping the hood on Vroom’s IPO filing

Yesterday afternoon, Vroom, an online car buying service, filed to go public. What does a private, car-focused e-commerce company worth $1.5 billion look like under the hood? (Extra Crunch membership required.)

7. Experience marketplace Pollen lays off 69 North America staff, furloughs 34 in UK

Founded in 2014 and previously called Verve, Pollen operates in the influencer or “word-of-mouth” marketing space. The marketplace lets friends or “members” discover and book travel, events and other experiences — and in turn helps promoters use word-of-mouth recommendations to sell tickets.

The Daily Crunch is TechCrunch’s roundup of our biggest and most important stories. If you’d like to get this delivered to your inbox every day at around 9am Pacific, you can subscribe here.

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Disney streaming exec Kevin Mayer becomes TikTok’s new CEO

Kevin Mayer, head of The Walt Disney Company’s direct-to-consumer and international business, is departing to become CEO of TikTok, as well as COO of the popular video app’s parent company ByteDance.

Founder Yiming Zhang will continue to serve as ByteDance CEO, while TikTok President Alex Zhu (formerly the co-founder of the predecessor app Musical.ly) becomes ByteDance’s vice president of product and strategy.

“I’m thrilled to have the opportunity to join the amazing team at ByteDance,” Mayer said in a statement. “Like everyone else, I’ve been impressed watching the company build something incredibly rare in TikTok – a creative, positive online global community – and I’m excited to help lead the next phase of ByteDance’s journey as the company continues to expand its breadth of products across every region of the world.”

The news was first reported by The New York Times and subsequently confirmed in announcements from ByteDance and Disney.

Mayer’s role involved overseeing Disney’s streaming strategy, including the launch of Disney+ last fall, which has already grown to more than 50 million subscribers. He was also seen as a potential successor to Disney CEO Bob Iger; instead, Disney Parks, Experiences and Products Chairman Bob Chapek was named CEO in a sudden announcement in February.

Mayer was likely an attractive choice to lead TikTok not just because of his streaming success, but also because hiring a high-profile American executive could help address politicians’ security concerns about the app’s Chinese ownership.

Over at Disney, Rebecca Campbell (most recently president of Disneyland Resort, who also worked on the Disney+ launch as the company’s president for Europe, Middle East and Africa) is taking over Mayer’s role, while Josh D’Amaro is taking on Chapek’s old job as chairman of Disney parks, experiences and products.

In a statement, Chapek said:

As we look to grow our direct-to-consumer business and continue to expand into new markets, I can think of no one better suited to lead this effort than Rebecca. She is an exceptionally talented and dedicated leader with a wealth of experience in media, operations and international businesses. She played a critical role in the launch of Disney+ globally while overseeing the EMEA region, and her strong business acumen and creative vision will be invaluable in taking our successful and well-established streaming services into the future.

 

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TikTok tops 2 billion downloads

TikTok, the widely popular video sharing app developed by one of the world’s most valued startups (ByteDance), continues to grow rapidly despite suspicion from the U.S. as more people look for ways to keep themselves entertained amid the coronavirus pandemic.

The global app and its Chinese version, called Douyin, have amassed over 2 billion downloads on Google Play Store and Apple’s App Store, mobile insight firm Sensor Tower said Wednesday.

TikTok is the first app after Facebook’s marquee app, WhatsApp, Instagram and Messenger to break past the 2 billion downloads figure since January 1 of 2014, a Sensor Tower official told TechCrunch. (Sensor Tower began its app analysis on that date.)

A number of apps from Google, the developer of Android, including Gmail and YouTube, have amassed over 5 billion downloads, but they ship pre-installed on most Android smartphones and tables.

TikTok’s 2 billion download milestone, a key metric to assess an app’s growth, comes five months after it surpassed 1.5 billion downloads.

In the quarter that ended on March 31, TikTok was downloaded 315 million times — the highest number of downloads for any app in a quarter and — surpassing its previous best of 205.7 million downloads in Q4 2018. Facebook’s WhatsApp, the second most popular app by volume of downloads, amassed nearly 250 million downloads in Q1 this year, Sensor Tower told TechCrunch.

As the app gains popularity, it is also clocking more revenue. Users have spent about $456.7 million on TikTok to date, up from $175 million five months ago. Much of this spending — about 72.3% — has happened in China. Users in the United States have spent about $86.5 million on the app, making the nation the second most important market for TikTok from the revenue standpoint.

Craig Chapple, a strategist at Sensor Tower, said that not all the downloads are as organic as TikTok, which launched outside of China in 2017 and has engaged in a “large user acquisition campaign.” But he attributed some of the surge in downloads to the COVID-19 outbreak that has driven more people than ever to look for new apps.

India, TikTok’s largest international market, accounts for 30.3% of the app’s downloads, according to Sensor Tower. The app has been downloaded 611 million times in the world’s second largest internet market.

From a platform’s standpoint, 75.5% of all of TikTok’s downloads have occurred through Google Play Store. But the vast majority of spending has come from users on Apple’s ecosystem ($435.3 million of $456 million).

TikTok’s parent firm ByteDance, which was valued at $75 billion two years ago, counts Bank of China, Bank of America, Barclays Bank, Citigroup, Goldman Sachs, JP Morgan Chase, UBS, SoftBank Group, General Atlantic, and Sequoia Capital China among some of its investors.

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