TikTok's Potential US Downfall Meets Industry Indifference as 75-Day Clock Ticks

TikTok's Potential US Downfall Meets Industry Indifference as 75-Day Clock Ticks

By Marcus Hartley

January 22, 2025 at 07:31 AM

TikTok faces significant challenges in the United States as industry support dwindles amid regulatory pressures. Despite receiving a 75-day extension from President Trump to secure a deal, the platform's relationships within the music industry remain strained.

Trump signing TikTok document

Trump signing TikTok document

Major labels and independent music companies share a common frustration with TikTok's aggressive negotiating tactics and perceived leverage abuse. The platform's approach to licensing deals and treatment of indie labels through Merlin has created lasting animosity within the industry.

Key challenges facing TikTok:

  • Removal from Apple App Store and Google Play Store, preventing new downloads and updates
  • Growing app deterioration due to lack of maintenance updates
  • Competitors like Instagram actively recruiting top TikTok creators
  • Limited support from tech industry leaders
  • Uncertain path to compliance with US regulations

The proposed solution of 50% US ownership presents significant complications, particularly given ByteDance's previous difficulties in securing private sector deals. The Chinese government's potential resistance to such an arrangement adds another layer of complexity.

While TikTok remains operational, its future in the US market appears increasingly uncertain. Content creators are advised to diversify their presence across multiple platforms rather than relying solely on TikTok's ecosystem.

LA Gives Back Fire Relief poster

LA Gives Back Fire Relief poster

The platform's potential downfall could create opportunities for competitors like Instagram and X (formerly Twitter) to capture market share in the short-form video space, fundamentally reshaping the social media landscape.

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