The clock's run out on ByteDance’s India dream

On Wednesday, ByteDance gave up on its India dream.As the government made its ban on TikTok permanent, the most valued startup in the world announced its plans to lay off close to half of its workforce in its biggest international market, people in the know told The Economic Times.According to estimates by mobile intelligence firm Sensor Tower, TikTok clocked 659.5 million downloads in India—equivalent to 30% of all global downloads—and close to 300 million active users until the ban was imposed in June 2020 amid India-China border tensions.In India, ByteDance saw an untapped market of millions of Gen Y and Gen Z users that was bursting with creativity and eager to publish their short videos on TikTok—for money, to have fun, or simply escape the daily humdrum. It hired by the thousands in India and planned to invest over a billion dollars. In no time, India became TikTok's biggest international market.To be sure, TikTok’s journey in India had been rocky from the outset. Given its Chinese origin, murmurs of the app being a national security threat existed throughout its run in India. It also came under heat from the government for mature content on the platform being a risk to children and later for allegedly violating its social intermediary status.The company persisted, course-corrected, and fought back—until it could no longer.TikTok in India: A timeline2017: ByteDance founder Zhang Yiming acquires Musical.ly, rebrands it as TikTok, begins global expansion, including entry into India. 2018: TikTok racks up 100 million downloads and with 20 million MAUs in India.April 2019: An eventful month for TikTok. First, the Madras High Court orders the government to prevent TikTok downloads over concerns that it was being used to spread content dangerous for children. Next, Apple and Google remove TikTok from their app store. By the end of the month, the court lifts the ban and TikTok survives to see another day.Later in 2019, to combat criticism around salacious content, TikTok gets film celebrities like Madhuri Dixit and Yami Gautam on the platform, diversifies content to include educational, motivational, fitness, and cooking videos on its platform.August 2019: TikTok claims exclusive rights over ownership of content that puts its intermediary status as social media platforms under the IT Act into question. MeiTY gives it a green light but PMO asks it to keep a close watch.Jan-May 2020: The rise and rise of TikTok influencers in India. From young adults in small towns using the app to register their protest against the Citizen Amendment Act (CAA) to police officers and others risking their jobs to produce short videos. Later, as the pandemic takes hold and people stay at home, the app becomes popular among the urban elite, foreign celebs Indianise content for their fanbase.June 2020: As hostilities between India and China intensify at the Line of Actual Control in Ladakh, TikTok bears the brunt of anger from Indian internet users, becoming the face of India’s growing concerns about China and its hold on India’s technology space.June 29, 2020: MeitY issues a temporary ban on TikTok and 58 other Chinese apps on concerns over “stealing” user data and calls the company “prejudicial” to India’s sovereignty, integrity, and national security. Parent company ByteDance decides to stay back and win the gov's trust.Post-banJuly-August 2020: The rise of TikTok copycats. As the app stops working in India, the up and coming Indian influencer economy on the platform faces a massive setback, so does the regional music industry. Sept. 2020: The company keeps the conversation going on Twitter and Instagram to keep audience interest alive. Jan. 26, 2021: MeitY permanently bans TikTok and 58 other apps in notices to the apps, saying their answers and clarifications following the ban were found to be inadequate.Jan. 27, 2021: ByteDance, TikTok’s parent company announces plans to scale back India operations; substantial layoffs on the horizon.

from Economic Times https://ift.tt/3ahdBwS