- Big tech companies could benefit from the TikTok ban in the US.
- TikTok users will look for similar platforms to interact with content if the ban is implemented.
- The possible economic impact of the TikTok ban in the US
TikTok CEO Shou Zi Chew is fighting a US ban on the app due to government concerns over the security of user data. However, wealth consulting firm Bernstein has stated that big tech companies like Meta, Google and Snap could benefit greatly if the TikTok ban is enforced in the US. This is because TikTok users will be looking for similar alternatives. to interact with the content.
Utah’s TikTok ban has highlighted concerns some state governments have about the harm that access to social media is allegedly doing to children.
Despite this, Bernstein notes that TikTok’s audience will be looking to other similar platforms to interact with the content, with the tech companies mentioned above being the most likely contenders.
Also, these companies are likely to advertise there as well, as they would lose a massive audience.
Bernstein reports that TikTok users spend around 2.8 trillion minutes a year on the app, with 150 million US users on the platform alone. While Netflix leads in terms of average minutes per day, TikTok comes in second with 52 minutes per day, per user.
Furthermore, the ban on TikTok in India led to the emergence of similar new apps that became immensely popular. While Bernstein suggests this is unlikely to happen in the US, the possibility exists.
Ultimately, we will have to wait and see what happens if TikTok is banned in the US and how it will affect the social media market.