Washington — TikTok reported generating a staggering $1.7 billion in global revenues from its live-streaming service, TikTok Live, in just the third quarter of 2023. Over $400 million of these earnings originated from the U.S., detailed in a recent lawsuit revealed in the capital.
The suit, initiated in October by District of Columbia Attorney General Brian Schwalb, accuses the platform of enabling both sexual and financial exploitation of minors through its live features, which permit users to broadcast in real time to a global audience potentially numbering in the billions.
According to projections within the lawsuit, TikTok anticipates that its live-streaming segment could amass revenues nearing $77 billion worldwide by 2027. This projection underscores the rapid growth and significant financial stake of live digital interactions on the platform.
An engaging aspect of TikTok Live involves the ability for viewers to send digital gifts, such as virtual ice cream cones and animated animals, to streamers as tips. These gifts, which involve real money, can be converted into cash by the recipients, while TikTok retains a portion of the transactions.
This fresh financial insight sheds light on the inner financial workings of TikTok at a time when the app faces scrutiny and potential prohibition in the U.S. As a privately held entity, the exact financial figures of TikTok have historically been elusive, complicating efforts to accurately assess the value of its operations within the U.S.
Furthermore, TikTok Live has grown in prominence following the introduction of TikTok Shop in late 2023, where sellers and creators are increasingly utilizing live streams to market and sell products directly.
Despite facing critical scrutiny and legal challenges, TikTok has consistently denied allegations of failing to safeguard its teenage users’ safety on the platform.
This emerging data and the ongoing legal challenges highlight the complex dynamics between rapidly growing social media platforms, user safety, and the substantial revenues involved in modern digital entertainment and commerce.
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