📈 Could TikTok's rise come crashing down?
Navigating the Turbulent Waters of Social Media Dominance
With a looming ban, will Trump be TikTok’s ‘Hail Mary’ in the U.S.? 🇺🇸🚫
More music was released in one day of 2024 than the entire year of 1989 🎵
The rising cost of Christmas dinner 🍗
🎉 Happy New Year! 🎉
Before we begin, thank you for being amazing Genuine Impact readers. We’ve grown so much in 2024, which we couldn’t have done without your support. So as we look to this new year, we’ll continue to improve and provide helpful financial insights to help your wallet - because your money deserves better.
TikTok’s Global Influence and U.S. Challenges
In March 2024, TikTok achieved a remarkable milestone with 46 million global downloads, making it the third most downloaded social media platform, trailing only behind giants like Facebook and Instagram. Its advertising revenue is on an upward trajectory, expected to reach an astonishing USD $53.95 billion by 2027. This rapid growth not only showcases the app's widespread appeal, but also its potential for significant financial success in the future.
TikTok's American Rollercoaster: A Saga of Innovation and Controversy 🎢
The story of TikTok in the U.S. is marked by dramatic expansion and significant government scrutiny. Following its global launch by ByteDance in May 2017 and its entry into the U.S. market in January 2018, TikTok swiftly won over American youth with its innovative content and AI-driven personalisation. Yet, the situation intensified in November 2019 with the U.S. launching a national security investigation into ByteDance’s acquisition of Musical.ly, raising data privacy concerns. The crisis escalated in August 2020 when President Donald Trump issued an executive order potentially banning the app unless its U.S. operations were sold to a non-Chinese company. While TikTok fought to keep control, Congress under the Biden administration passed a law in April 2024 banning the app as early as 19 Jan 2025.
Despite these hurdles, TikTok flourished, reaching 1 billion users worldwide by September 2021 and achieving $16 billion in U.S. revenue by March 2024, even amid looming regulatory threats.
Trump Requests U.S. Supreme Court to Postpone TikTok Ban
Now that we’re officially in 2025, TikTok is at a critical juncture. But could Trump, who initially looked to ban it be TikTok’s saving grace? During the election, Trump flipped his position on the app to now support it. The ban has been appealed to the Supreme Court, who are set to hear arguments on 10 Jan (just over a week before the ban). But over the weekend, Trump asked the Courts to postpone the hearing until he takes office, in order to resolve the issues politically and diplomatically.
Concerns are bipartisan with fears that ByteDance could potentially share user data with the Chinese government, an accusation the firm vehemently denies. TikTok contends that the ban violates free speech.
And a ban on TikTok could have a far reaching impact. With potential losses for small businesses possibly exceeding $1 billion in revenue within a month, TikTok and thousands of entrepreneurs’ fates are in a bit of a limbo - hoping Trump might be able to save them.
Additionally, the looming ban has content creators on edge. According to NeoReach's 2023 Creator Earnings and Insights Industry Report, 48% of TikTok influencers earn less than $15,000 annually, with the median income falling between $15,000 and $25,000. Despite this, about a third of influencers achieve a full-time salary, primarily through brand partnerships and sponsored posts. Payment for these posts varies greatly, ranging from $20 for smaller accounts to over $1,200 for influencers with more than a million followers, underscoring the significant impact a ban could have on the creator economy.
Stay tuned for this Friday when we'll dive deeper into TikTok's parent company ByteDance and other global unicorn companies! 🌍🦄
In Case You Missed It 📬
🎵 The Great Music Explosion of 2024
2024 was not just a good year for the music industry—it was record-breaking! MusicRadar notes that more tunes dropped in a single day this year than all of 1989. Thanks to tech advances, creating music is as easy as pie, pushing the global number of musicians to a whopping 75.9 million in 2023, with an eye-popping 198.2 million expected by 2030, according to MIDiA.
But it's not all sunshine and royalties. While artists enjoy unprecedented creative freedom, they also face the challenge of making ends meet with meager streaming earnings. And with millions of songs flooding services, 45.6 million tracks got zero plays last year—that's 24.8% of all music out there!
Despite the noise, niche genres like Christian indie are finding their groove. Yet, for many musicians, the battle to be heard above the din is real and growing tougher by the note. 🎶
Christmas Dinner Cost Rises in 2024 🎄💷
The price of an average Christmas dinner for four in the UK reached £32.57 this year, marking a 6.5% increase from 2023. Notably, potatoes and other vegetables like carrots, cauliflower, and parsnips saw double-digit cost hikes, contributing significantly to the overall rise. Even festive essentials like cranberry sauce and Christmas pudding saw increases, making this season's feast pricier than last. Stay budget-savvy this holiday season!
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