While TikTok Live is one of the most popular features on the app, details on how much money it makes have been sparse. However, an unsealed court document has finally provided insight into how lucrative TikTok Live really is.
As reported by Bloomberg, the document claims TikTok Live alone raked in $1.7 billion in sales during just one quarter in 2023. Moreover, the document claims that more than $400 million of that money comes from the US. But the most striking revelation from the lawsuit is TikTok’s projection for its livestreaming feature.
“TikTok has described LIVE viewers as a ‘committed’ user base, with 62% of them watching it daily,” the legal complaint reads. “The company estimates that by 2027 it could capture up to $77 billion a year from LIVE alone.”
Usually, as pointed out by ABC, TikTok holds its cards close to its chest when it comes to this kind of financial data. So, being able to even have knowledge of this figure in the first place is an achievement. It also shows TikTok’s continual money-making potential in the US, which may well influence a future deal.
What Is the Lawsuit About?
District of Columbia Attorney General Brian Schwalb filed the lawsuit in question in October. On TikTok Live, viewers can send TikTokers digital “gifts” in the form of online icons, which creators can then redeem as cash (with TikTok taking a certain percentage of it).
According to the suit, men are abusing this “gift” system to coerce minors into performing sexualized acts on Live. The legal document also claims that 70% of 13 to 15-year-olds claimed they were over 18 upon sign-up.
The lawsuit raises further questions about child safety and exploitation on the popular app, and the steps TikTok is taking to tackle the issue. It also questions whether TikTok has been honest about how safe young people are on the platform.
However, speaking to Bloomberg, a TikTok spokesperson vehemently denied the accusations. “This lawsuit ignores the number of proactive measures that TikTok has voluntarily implemented to support community safety and well-being,” the spokesperson said.
“Instead, the complaint cherry-picks misleading quotes and outdated documents and presents them out of context, which distorts our commitment to the safety of our community.”
This isn’t the first time TikTok has come under fire for child safety. Back in October, along with Meta and Google, 150 lawsuits from various school districts were filed against the app. Clearly, despite its financial success, there are some issues that TikTok needs to work through, especially as it prepares to potentially go under new ownership.
