Ban or no ban, Facebook wins in those new threats against TikTok

July 9, 2020

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It's a special day in the StrictlyVC fam and we've been a' swamped, so apologies for the very abbreviated issue -- we'll make it up to you tomorrow!

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Ban or No Ban, Facebook Wins in U.S.'s Threats Against TikTok

On Tuesday, U.S. Secretary of State Mike Pompeo said that the U.S. is “looking at” banning Chinese social media apps, including the Chinese-owned company TikTok, comparing it to other Chinese companies like Huawei and ZTE that have been deemed national security threats by the current administration. “With respect to Chinese apps on people’s cell phones, I can assure you that the United States will get this one right, too,” Pompeo said.

The fear is the app could be used to surveil or influence Americans, or else that TikTok parent ByteDance could be made to provide the Chinese government with TikTok’s data on its U.S.-based users — of which there are at least 165 million. India, calling TikTok a “threat to sovereignty and integrity,” decided to ban the app late last week, saying it had similar concerns.

Though security experts disagree over how concerned the U.S. should be about TikTok, the move would would undoubtedly hobble what has become one of the fastest-growing social media businesses on the planet, with 800 million monthly active users worldwide, half of whom are under age 24. In the meantime, the mere suggestion of a ban is proving a boon to TikTok’s biggest rival, Facebook — and notably at a time when the U.S. company faces growing scrutiny over its decision not to take action on multiple controversial posts from Donald Trump.

The threat is already prompting some to speculate that Pompeo’s warning was politically motivated. In a new interview with Axios, for example, L.A.-based talent manager John Shahidi observes that TikTok users have said they were partially responsible for a Trump rally in Oklahoma two weeks ago that failed to deliver huge crowds.

Shahidi — whose agency currently oversees nine “channels” on TikTok that collectively enjoy than 100 million followers — doesn’t doubt the two are related. “I’m on TikTok a lot,” Shahidi says, and “there are no Trump supporters, no official Trump account; no one who is from his team is on TikTok.” Is it “just coincidence that we’re heading toward [the election], and the one app that doesn’t support him — with everything happening in the world — we’re going to talk about taking down TikTok?” he adds.

A shifting landscape

Either way, TikTok influencers are more actively promoting their other social media channels, including Facebook’s Instagram, to their followers as a kind of contingency plan. Soon to join them is rising social media star Pierson Wodzynski, a 21-year-old who ran track in high school and was taking a break from studying communications in college when, in January, a friend invited her to participate in a show on AwesomenessTV, a YouTube channel that has more than 8 million subscribers.

The show’s set-up centered around nabbing a date with social media star Brent Rivera, who has 13 million YouTube subscribers, 19.8 million Instagram followers, and more than 30 million TikTok fans. But afterward, Wodzynski found herself with the L.A.-based talent agency that Rivera cofounded two years ago called Amp Studios and in recent months, aided by special guest appearances by Rivera, she has built a substantial fanbase herself, with 500,000 subscribers on YouTube, 455,000 Instagram followers, and 4.1 million fans on TikTok.

Wodzynski says her followers seem to like the comedy bits she develops, such a recent series on the “things that go wrong when you’re running late,” and another on the “Appdashians,” wherein each character she plays is a different social media company. (Notably, Facebook is the old grandmother character.) Says Wodzynski, who comes across as both confident and affable, “I’m so unbelievably myself [on social media], it’s crazy.”

Little wonder that she’s concerned about the TikTok’s future in the U.S.

More here.

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Sheila Vashee has joined Basis Set Ventures as its third woman investment partner. She joined from Opendoor, where she led the company's growth team. Forbes has more here.

Data

The second quarter of this year was the largest yet for mobile app downloads, usage and consumer spending. According to new data from app store intelligence firm App Annie, mobile app usage grew 40% year-over-year in the second quarter, even hitting an all-time high of over 200 billion hours during April. Consumer spending in apps, meanwhile, hit a record high of $27 billion, and app downloads reached a high of nearly 35 billion. TechCrunch has more here.

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Ban or no ban, Facebook wins in those new threats against TikTok

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