If you kinda wish TikTok was going away, join the music industry club. But assuming the brand-new ‘American TikTok’ is imminent, what’s about to change — if anything?
One can be forgiven for lamenting the survival of TikTok in the United States. Sometimes, death is a good thing, especially for platforms that pay so poorly. But love or hate this short-form monstrosity, it looks like the American version of TikTok is about to become a reality.
Instead of dying, TikTok is likely to flourish, albeit in a new iteration. Now, the industry is trying to wrap its head around what that actually means.
So what the hell will ‘TikTok America’ look like?
On the ground, everyday American users may hardly notice a blip — or at least that’s the plan. According to the latest intel, a transition towards the US-hosted iteration won’t even require an app re-installation.
Behind the scenes, a profound hosting switch (to a US-based Oracle farm), a retrained algorithm, and a brand-new ownership cast are slated to take over. But it looks like core TikTok moments like viral musical blow-ups will continue, whether for 1950s heartthrobs or 15-year-old phenoms.
But as ‘seamless’ as the migration may be — at least on paper— DMN’s sources say several transitions are worth eyeing.
For starters, an algorithm ‘reset’ will probably generate some short-term turbulence. And for evidence of that, look no further than the recent, short-lived app bans in the US — and the hand-wringing it generated among TikTok’s power-users as intelligent recommendations went to pot.
“TikTok’s content recommendation algorithm will be retrained from the ground up—reviewed and analyzed under US supervision with US data that will not be shared outside of the United States,” White House officials shared.
That’s a big deal, but for everyday users, it sounds like a short-term transitional blip, of which there may be a few. Other changes could be more meaningful and longer-lasting.
Importantly, TikTok US will now fork into a different territory than TikTok Global. A partitioned, US-based algorithm will blaze its own path, while the mainline ex-US algorithm continues apace. The post-transitional reality is that another app, specifically for Americans, is effectively entering the global stage, and artist marketing teams — and artists themselves — may need to adapt accordingly.
Maybe that’s a big deal, or maybe it’s simply a big opportunity. But what about the new owners?
Instead of ByteDance and a puppet-stringing People’s Republic of China, the newly-crafted, US-based TikTok will be owned by a consortium that includes Silver Lake, Oracle, Andreessen Horowitz, and potentially Rupert Murdoch, Lachlan Murdoch, and Michael Dell. That cast reportedly paid billions to Uncle Sam to own a piece of TikTok, though it’s unclear if the newly minted ownership class will interfere with app content, the algorithm, or other components.
On that note, the potential involvement of the Murdochs’ Fox Corporation is raising some eyebrows. Exactly how the ownership deal is being structured is still in flux, though regardless of the details, the White House is clearly controlling the direction of the US-based TikTok variant.
As for the impact on areas like music licensing specifics and whether TikTok USA expands into distribution or streaming, that’s anyone’s guess. Also worth noting: there’s still not a final signature or sealed deal on the White House’s newly-molded TikTok offshoot.
And of course, all of this is likely to change in a few vertical swipes — so stay tuned.
