US, WASHINGTON (ORDO NEWS) — TikTok app by ByteDance Ltd. and its Chinese version of Douyin took first place in revenue from in-app purchases in April, according to Sensor Tower. The popularity of the Chinese application with short videos, which has become a cultural phenomenon, worries American IT giants.
Over the past two years, the service audience has grown by more than 125%. According to rumors, Google-owned YouTube is already developing a similar application with a short video feed.
TikTok and its Chinese version of Douyin for the month showed a tenfold increase in revenue, reaching $ 78 million. This is more than YouTube, Tinder and Netflix, which earn on paid subscriptions.
The Chinese market, where the app is known under the local Doujin brand, accounts for 86.6% of revenue, followed by the United States with 8.2%.
In any version of the video application, it is possible to buy internal “currency”, which can be spent on supporting authors that you like. At the same time, neither TikTok nor Doujin entered the top 10 in terms of volume of purchases within the application on Google Play, but took first place among the App Store applications.
YouTube took second place in the ranking – revenue from in-app purchases amounted to almost $ 76 million, an increase of 57% compared to April last year. Most of the revenue comes from the United States and Japan. Next up are Tinder, Disney Plus and Tencent Video.
Like many other social media platforms, ByteDance is trying its hand at online commerce, despite continuing to rely on advertising as its primary source of revenue.
The research company Emarketer predicts that more than 75 million American users of social networks aged 14 years and older will make at least one purchase within social applications in 2020, which is 17.3% more than in 2019.
In the first quarter of 2020, TikTok and Douyin downloaded 315 million times around the world, compared to 187 million last year, Sensor Tower analysts write, noting the positive impact of COVID-19 on the popularity of video sharing applications.
According to the Conviva report, the number of viewers of streaming video in the I quarter of 2020 increased by 57% compared to the same period last year. The number of views of content on demand grew by 79% in the I quarter, it accounted for 72% of the video consumption time.
In the first two weeks of April alone, YouTube’s consumption grew by 50% compared to the same period last year (Nielsen). The leader of the premium video segment – Netflix – recorded a record increase of 15.77 million subscribers in the first quarter of 2020, thanks to which its subscriber base grew to 182.86 million.
The number of subscriptions of the Showtime streaming service has grown almost one and a half times in April 2020.
The Amazon Twitch streaming platform, which is mainly used for broadcasting video games, grew by 33% – from 33 million users on March 8, 2020 to 43 million on March 22. Surveys show that spending on streaming services in the United States rose in March to an average of $ 37, compared with $ 30 in November. Families with children spend even more – an average of $ 60 per month.
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