Chinese ByteDance earned more than $17 billion on adolescents in TikTok

the Owner of TikTok video service company ByteDance last year earned more than $ 17 billion in revenues and more than $ 3 billion in net profit, according to Bloomberg. Revenue last year by more than two times higher than that in 2018, when the company earned approximately 7.4 billion dollars. The sources wished to retain anonymity because financial details are not public.

For comparison, Instagram, which is a subsidiary of Facebook, has brought about $ 20 billion of advertising revenues in 2019, according to Bloomberg. Google said that its video division YouTube earned of 15.1 billion from advertising last year.

Audience applications ByteDance is around 1.5 billion monthly active users. Flagship service, of course, can be considered as a platform short video TikTok and its Chinese version called Douyin, as well as a news service Toutiao. This month, the company has recruited for the post of General Director (and simultaneously operating officer) the top Manager of Disney’s Kevin Mayer.

American media company, Mayer headed the streaming and international operations. It was under his leadership the company has launched a service Disney+ last fall, to date, garnered more than 50 million subscribers. Moreover, writes TechCrunch, Mayer was considered as a potential successor to Disney CEO Bob iger. However, in February after the sudden departure of the Eiger, a company headed by another top Manager, Bob Chapek.

the Popularity of Chinese apps with a short video that became a cultural phenomenon, can not disturb American competitors. Over the past two years the audience of the service grew by more than 125% and over the last 12 months, the app was downloaded from App Store and Google Play 842 million times. According to rumors, Google owned YouTube was already developing a similar application with ribbon short video.

the Chinese companOia have achieved success despite the fact that U.S. lawmakers make regular attacks on the TikTok and Express concern about privacy and censorship. Previously, members of Congress have expressed concerns that the growing influence of the TikTok is a threat to national security. In particular, due to the fact that the application can share data with its owner — the Chinese Bytedance.

ByteDance expanding its activities to new areas, including e-Commerce and games. This year she has been actively hiring employees and plans to create 40 000 new jobs in 2020, hoping to match the number of personnel of the e-Commerce giant Alibaba Group Holding at the time, as technology corporations around the world spend reduction of the personnel.

ByteDance held preliminary talks about an initial public offering of shares last year, but is in no hurry to go public, given its financial performance, Agency sources said. According to the informants, currently the company has more than $ 6 billion of the cache.

Bytedance, which is supported by SoftBank, General Atlantic and Sequoia, is already the most valuable startup in the world, according to the researchers CB Insights. Anonymous sources told Bloomberg that the last time we concluded several transactions for the sale of shares in the company. In some of them, it was altogether valued at $ 140 billion.

Recently, the TikTok and its Chinese version Douyin took first place by revenues from purchases within mobile applications in April, according to Sensor Tower. During the month the service a short video showed a tenfold growth in revenue, which reached $78 million. That’s more than YouTube, Tinder and Netflix, who earn on paid subscriptions.

the share of the Chinese market, where the application is known under local brand Douyin, account for 86.6 per cent of incomesYes, followed by the United States from 8.2%.

In any of the versions of the video applications have the option to buy the internal “currency” which can be spent on support for any of the authors. Neither TikTok or Douyin not included in the top 10 in terms of in-app purchases in Google Play, but took first place among the App Store.

YouTube took second place in the ranking — revenues from in-app purchases amounted to almost $76 million, an increase of 57% in comparison with April of last year. The largest part of its revenues from the US and Japan. Followed with Tinder, Plus Disney and Chinese video service Tencent Video.

Like many other social media platforms, ByteDance tries himself in the field of online Commerce, despite the fact that continues to rely on advertising as main source of income. Research company Emarketer predicts that more than 75 million U.S. social media users aged 14 years and older will make at least one purchase inside social apps in 2020, which is 17.3% more than in 2019.

In the first quarter of 2020 TikTok and Douyin downloaded 315 million times worldwide compared to 187 million last year, say analysts at Sensor Tower, noting the positive impact COVID-19 on the popularity of applications for video sharing.