Bytedance is the most valuable start-up in the world. What hardly anyone knows: It is the driving force behind the successful Teens Tik Tok. Even a private smartphone should appear. But how could the Chinese company become so successful?A little portrait.
Do you still know Musically? This was this hip social media app for teens that kids and teens loved about. But only until August 2018, then she was simply pulped.
The Chinese company Bytedance bought the app for an estimated US $ 1 billion and integrated it into a new video platform: Tik Tok was born.
Tik Tok is the app showcase
Tik Tok got the triumph of Bytedance rolling. The app is known in China as Douyin and especially popular in Asia. With it you can create and upload short videos, accompany them with selected music and add numerous effects.
Until not so long ago, the network was intended primarily for young people. In the meantime, however, user numbers have risen so much that companies are not stopping at Tik Tok.
The industry serviceBusiness of Appsreports that Tik Tok 2018 was the fourth most downloaded app in the world, even before Instagram and Snapchat. And according to the tech magazineDigidayBy now, an incredible 800 million people use the video-focused platform worldwide.
Germany is the most important Tik Tok market in Europe
In Germany, the app currently has more than four million users. This makes Germany the strongest tik-tok market in Europe so far. We are just ahead of France (also four million users), Great Britain (3.7 million) and Spain (2.7 million).
From the Bundesliga, Borussia Dortmund and FC Bayern Mnchen are also using the application to upload exclusive clips and reach fans around the world. The BVB currently comes to around 185,000, the German record champion to 202,000 followers.
The special thing about the platform is that it relies on a somewhat differently programmed algorithm. Every video can go viral through it – regardless of how many followers the user has.
The algorithm as a guarantor of success
The algorithm is originally from another Bytedance app: It’s called Toutiao and is barely known in Germany. This is a mobile news aggregator.
Artificial intelligence uses personal interests as well as image and text recognition and other elements to evaluate which content users might still like. This successfully induces them to consume more.
Toutiao runs in China on over 240 million devices. In Europe Bytedance is trying to build on this success with the App News Republic. The start-up had bought the news aggregator 2017.
Bytedance: The Trojan horse?
The startup’s app portfolio includes many other Chinese and international applications. For example, Lark is a kind of Slack, Duoshan a Chinese Snapchat copy, and Helo a social media platform with over 40 million users in India.
Only rarely has a Chinese company with a platform in Europe and the USA generated such broad reach as Bytedance. No wonder companies in Germany are also paying attention.
The start-up is currently $ 75 billion and still little known. Maybe because it was only founded by Zhang Yiming in 2012?
You can call Bytedance almost a Trojan horse. The start-up knows how successful it is with Tik Tok international. But most countries do not know the ambitious company behind it.
This is how the company finances itself
Bytedance earns money through advertising in the networks and through an integrated coinage system. Within Tik Tok, for example, users can buy virtual coins to buy certain emojis and give them to their favorite profiles.
According to the market research institute Sensortower Bytedance has so far earned 75 million US dollars.
But even before investors, the start-up can hardly save. Since October 2018 the corporation has, according to the business platformCrunchBaseget more than four billion dollars from lenders.
The company also received $ 1.3 billion in credit from JP Morgan, Goldman Sachs and the Bank of China in April, among others. He also probably needs that. After all, Bytedance wants to launch its own smartphone next on the market.
For 2019, the group expects loudBloombergin addition, a turnover of 18 billion US dollars. By 2020 it will be already 29 billion.
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