The Strategist

TikTok ahead of YouTube and Netflix in revenue from in-app purchases

05/26/2020 - 07:20

TikTok and its Chinese clone earned $ 78 million with in-app purchases in April. This is the biggest result in the world; the figure exceeds YouTube, Netflix and Tinder.

The total revenue of the TikTok mobile application and its Chinese counterpart Douyin in April amounted to $ 78 million, according to data from Sensor Tower analytical company. The figure does not include games and ads. This is the largest result among mobile applications in the world.

Compared to April last year, revenue from TikTok and Douyin, developed by China's ByteDance Ltd., grew 10-fold, Sensor Tower said. About 86.6% of the revenue came from the Chinese market; other 8.2% came from the US market. Both applications have a system for buying domestic currency, which can be spent on supporting favorite content creators. At the same time, neither TikTok nor Douyin entered the top 10 Google Play in terms of purchases within the application, but took first place among the App Store applications.

YouTube came in second in the overall ranking, with revenue of almost $ 76 million. It grew by 57% compared to April 2019: most of the in-app purchases from the app came from the United States (56.4%), followed by Japan (11%).

The top five also included Tinder, Disney + and Tencent Video.

ByteDance, which owns TikTok and Doying, is exploring online trading opportunities, but so far relies on advertising as its main source of revenue, Bloomberg writes. The agency cites the data of the research company Emarketer: it expects that more than 75 million users of social networks in the United States, 14 years old and older, will make at least one in-app purchase - an increase of 17.3% compared to 2019, BloombđÁrg noted.