Does the Potential Bust Up of TikTok Foreshadow a Major Boost to YouTube?

“It is the part of a wise man to keep himself today for tomorrow, and not venture all his eggs in one basket.” — Miquel de Cervantes’ quote in 1605 by Don Quixote

While on its surface, a TikTok could provide YouTube with an opportunity to expand its user base, increase engagement, and solidify its position as a leading platform for video content, it’s also important to note the possible side effects to the greater Creator Economy.

🐦‍⬛ A Great Creator Migration

Many Creators leverage multiple platforms already. According to Forbes, there are about 50 million content Creators across multiple platforms, including YouTube, TikTok, Instagram, and Twitch. That’s about 50 million people participating in the Creator Economy.

According to HubSpot: The Creator Economy saw significant growth during the start of the COVID-19 pandemic. During this time, many people found themselves working from home or looking for new income streams due to budget cuts and layoffs. This resulted in more people having more time or incentives to create content on platforms like TikTok, Twitch, and YouTube.

TikTok saw a significant increase in users during the height of the pandemic, which directly contributed to a boom in the content Creator Economy. According to Statista, TikTok experienced a growth of 180% among users ages 15–25 after the pandemic broke out in the U.S. in 2020.

While Instagram and YouTube responded to competitor TikTok with short-form Reels and Shorts in 2020 (shortly after India banned TikTok), many teens and kids still flocked to TikTok over YouTube in the year that followed.

TikTok users may indeed migrate to YouTube to fill the void left by the absence of their favorite short-form video platform. Cross-platform Creators (those posting content to both TikTok and YouTube) may find themselves bolstering efforts on the YouTube side instead.

However, the questions about YouTube experiencing platform saturation and how the culture of YouTube would adapt to the influx of short-form Creators remain to be answered.

💸 Increased Engagement & Advertising Competition

With more users and Creators joining YouTube, there could be an increase in overall engagement on the platform. This could lead to longer watch times, more ad views, and potentially higher revenue for YouTube.

Content Creators previously active on TikTok might shift their focus to YouTube. YouTube’s monetization options, such as the YouTube Partner Program, offer Creators various ways to earn money from their content, including ad revenue, channel memberships, and merchandise shelf.

This could attract TikTok Creators looking for alternative revenue streams.

With TikTok out of the picture, advertisers looking to reach a similar audience demographic may turn to YouTube. This could lead to increased competition for advertising space on the platform, potentially driving up ad prices and revenue for YouTube.

🌧️ Potential for Innovation Stagnation?

In an April 7th, 2024 Forbes article: A TikTok Ban Would be a Godsend for YouTube And Instagram, author Richard Nieva writes:

In the U.S. Congress’s push for TikTok’s exit in the U.S., many Creators have spoken out about how a potential ban would hurt their careers and businesses.

While YouTube and Instagram might get a shot in the arm from a TikTok ban, the disappearance of a major competitor could stagnate innovation for those platforms — a major tenet of antitrust theory. TikTok has always been a favorite of Creators because it releases new features, filters, and easy-to-use tools quickly and often.

TikTok’s algorithm is at the heart of its value and if a sale of TikTok occurs, media speculation is that it would likely happen without this valuable recommendation component — a big blow to the community of TikTokers.

With a looming TikTok bust-up, YouTube may further capitalize on the popularity of short-form video content by further integrating such features into its platform, including improving the Shorts feature and making it more prominent to attract both users and Creators.

❤️GigaStar Loves the Creator Economy

What does it take for a Creator to reallocate more energy and resources into YouTube over TikTok? What could a Creator do with funding to help future-proof their business and support their longevity as a Creator? These are all questions we want to help Creators answer.

If you’re a YouTube Creator seeking a way to bolster your channel, explore how GigaStar Market can help you raise funds to achieve your goals.

Through GigaStar Market, YouTube Creators can raise funds from strategic investors through a revenue-share offering. Apply for a Drop!

Learn more at gigastar.io.

Investment offerings are speculative, illiquid, and involve a high degree of risk, including the risk of losing your entire investment. Past performance is not a guarantee of future results.

This communication is provided by Creator Networks, Inc., (dba GigaStar). GigaStar is the Parent Company of GigaStar Portal, LLC (dba GigaStar Market), an SEC registered funding portal member of FINRA, and GigaStar Technologies LLC, offering blockchain and smart contract solutions via GigaStar Portfolio.

Investment offerings are speculative, illiquid, and involve a high degree of risk, including the risk of loss of your entire investment. Past performance is not a guarantee of future results. Neither GigaStar nor any of its affiliated companies provide legal, regulatory, financial or tax advice.

Any opinions expressed herein are those of the author(s) and are for informational purposes only. The information and opinions expressed herein are subject to change without notice and do not take into account the particular investment objectives, financial situation, or needs of any specific investor(s). Additionally, any factual content in this material was obtained from sources believed to be reliable, but we do not warrant the accuracy or completeness of any information contained herein and provide no assurance that this information is, in fact, accurate.

Projections are inherently subject to substantial and numerous uncertainties and to a wide variety of significant business, economic, and competitive risks, and the assumptions underlying the projections may be inaccurate. Forward‐looking statements are not guarantees of future performance and the reader is cautioned not to place undue reliance on forward‐looking statements.