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We’re an entertainment app, not a social network like Facebook

ByteDance Ltd.’s TikTok app is displayed in the App Store on a smartphone in an organized photo shoot in Arlington, Virginia.

Andrew Harrer | Bloomberg | Getty Images

TikTok is fully aware that Meta CEO Mark Zuckerberg is redesigning his Facebook and Instagram apps to make his short video service more popular. But TikTok has no interest in imitating Facebook.

“Facebook is a social platform,” Blake Chandle, president of global business solutions at TikTok, told CNBC on Thursday. “They’ve built all the algorithms based on the social graph. That’s their core competency. It’s not ours.”

Chandle, who spent 12 years on Facebook before joining TikTok in 2019, said his former employer will likely have problems if he tries to copy TikTok, and will end up providing a poor experience for users and brands.

Facebook launched Instagram Reels in 2020 as the first real entry into the short video market. Last year, the service moved to the main Facebook app.

“We’re an entertainment platform,” Chandle said. “The difference is noticeable. It’s a big difference.”

Tom Alison, head of Facebook, told The Verge this week that TikTok is increasingly stealing from the world’s largest social network. Facebook wants to change its main feed to make it look more like TikTok, recommending more content regardless of whether friends share it or not.

“I think the way things are that we probably didn’t fully accept or see how social this format can be,” Alison told The Verge.

Facebook’s latest performance ensures that. Meta’s share price fell 52% this year, with a 32% drop in Nasdaq’s low yield. In April, the company said revenue for the second quarter could fall for the first time in less than a year.

Earlier this year, Zuckerberg acknowledged that TikTok’s competitive pressure had increased and said: “That’s why Reels’ attention is so important in the long run.”

TikTok is owned by Chinese ByteDance, which is privately owned.

Chandle said history is not in favor of Zuckerberg, and compares his current problem to the challenge that Google is trying to take on Facebook in its game.

“You remember when Google Google+ was being created,” Chandle said. On Facebook, “We had war rooms at the time. It was a big problem. Everyone was worried about it,” he said.

But how much money Google spent on social media efforts could not compete with Facebook, as it became the default place for people to connect with friends and share photos and updates.

“It became clear that the value of Google was search and that Facebook was very good in society,” Chandle said.

“I see the same thing now,” he added. “We’re really good at what we’re doing. We’re highlighting these cultural trends and this unique experience that people at TikTok have. .

Facebook did not immediately respond to a request for comment.

Chandle added that he has a lot of respect for Zuckerberg and sees Facebook and Google as strong competition. However, he noted that TikTok has many competitors around the world, including e-commerce and live streaming businesses.

Chandle said he has not seen spending on ads on TikTok, although companies like Snap have reported that investors have been told that ad revenue is hurting inflation and threats of recession. Snap’s stock has lost nearly three-quarters of its value this year.

“I’ve heard it’s going to slow down in the ad market, from 2% to 6%, but we haven’t seen it,” Chandle said. “We don’t see the headwinds that others are seeing.”

SEE: Mitchell Green of Lead Edge Capital says Snap has a problem with TikTo

We’re an entertainment app, not a social network like Facebook

Source link We’re an entertainment app, not a social network like Facebook

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