Happy Dance

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    • TikTok work in sports could be key to fuel owners’ already explosive growth.

Some recent TikTok changes to its music regulations will make it tougher for sports brands to work with the platform. While that might pose a challenge, TikTok is also making a push into long-form content with a specific focus on sports – recent collaborations include efforts with Jordan Brand and the NFL.

The exploration into long-form content could help grow the platform’s revenue, which is expected to be approximately $500 million in the U.S. in 2020. Last year, TikTok generated between $200 million and $300 million globally. The app’s Chinese owner, ByteDance, has tripled its U.S.-based staff in the past year, which now exceeds 1,000. It also named Kevin Mayer, who was Disney’s head of streaming, CEO of TikTok in May.

TikTok’s growth – the platform alone has 800 million active users with 41% aged 16-24 – has come with scrutiny from U.S. regulators and lawmakers regarding its Chinese parent company and the personal data the app collects. ByteDance reportedly generated $5.64 billion in first-quarter revenue, a 130% year-over-year increase. The privately-owned company was recently valued between $95 billion and $140 billion and has a 2020 revenue goal of $28.2 billion.