Business
Regarding concerns and US users use of TikTok, There is a value based belief system in the US that social media is an avenue for free speech (it’s not just the US either). The President and the White House Administration is contemplating banning TikTok from American users due to national security risks and collection by the Chinese Gov’t of United State users personal data, as explained in my previous episodes. I will be breaking this down much further in this episode. I will help you think further about what it means if TikTok is banned – what it means to you and your business, what is trending in response to the looming changes and what it could mean to Facebook and other social media platforms? On Friday, an alternative solution was announced and that is for Microsoft to purchase the American entity of TikTok. Huh?? I had the same reaction in 2015 when IBM purchased The Weather Channel. But then I realized it was for data! Microsoft has the same interest. Their future business is more and more focused on consumer services data to support advancements in their products like Xbox and future game streaming services. Furthermore, there are future generations moving up into the workforce and with Googles Gmail for instance, they understand that consumers have other choices today, once they hit the workforce they may not choose Microsoft products. They’re going to become business decision makers as well. Once they hit the work force they may not choose Microsoft product.s It’s a constrant branding, innovation, differentiation, software as a service company. Microsoft is also serious about AI (Artificial Intelligence) and because TikTok has AI built into it’s tool it could accelerate AI initiatives centered around consumer data. Same goes as with augmented reality (or AR)….TikTok has filters and ads that are powered by AR. Their mobile focused capabilities is not something that Microsoft has had success in to date. And because TikTok is mobile, well they are ahead in that regard as well. Microsoft is not unfamiliar with acquisitions; Skype, Nokia and LinkedIn to name a few large complicated acquisitions in recent years. There still lies the question of the algorithm tho. Who’s going to own that? The White House has given TikTok until Sept. 15th to sell or it will ban it’s service to US users. The President met with Microsoft’s CEO, Satya Nadella. And then out came Microsoft’s formal statement which said, Microsoft fully appreciates the importance of addressing the President’s concerns. It is committed to acquiring TikTok subject to a complete security review and providing proper economic benefits to the United States, including the United States Treasury. So Microsoft is considering purchasing TikTok not in it’s entirety, but in the US, but also 3 other countries and those are Australia, Canada and New Zealand which is 30% of TikTok. In an article in chinadaily.com, it said that TikTok denied it could be a tool for Chinese intelligence. In a statement on Saturday, (so I’m recording this on Aug. 5th) TikTok US General Manager Vanessa Pappas said the app is staying in the US and is "not planning on going anywhere". The article then goes on to say, “ByteDance (TikTok’s parent co) founder Zhang Yiming also said on Monday in an email to staff that TikTok has always been committed to user safety, platform neutrality and transparency, and the company has initiated preliminary discussions with a tech company to help clear the way to continue offering the TikTok app in the US.” He continued by saying "We do not yet know the exact details of what our end solution will be. Candidly, it is unlikely that the level of interest and speculation around TikTok will cease in the short term, and I recognize that this can be very distracting," and he is talking to his employees. In an article by Forbes this month, linkedin the show notes to all these references, That dataset, in the hands of an adversarial foreign government, is a risk—a very serious risk, in a world where social media is used to push propaganda out to users who tap those platforms as a primary source of news. When TikTok is described as a national security risk, that is essentially what those governments mean. It goes on to say , “The more insidious view,” Thornton-Trump says (no relation to Trump, as far as I know LOL), “is that TikTok and other apps present a danger of mass manipulation and social control and disinformation. The danger may be minimal to the individual but serious for society and democracy.” TikTok is at pains to stress that it has not provided user data to Beijing, that it would not do so if asked. See I wanted to give you perspectives from TikTok, from Microsoft and from the White House Administration. She goes onto say, “TikTok is led by an American CEO, with hundreds of employees and key leaders across safety, security, product, and public policy here in the U.S.,” the company told me (author of this Forbes article) in response to talk of that U.S. ban. “We have no higher priority than promoting a safe and secure app experience for our users. We have never provided user data to the Chinese government, nor would we do so if asked.” As to how to potentially the monetary exchange will look like,if some kind of acquisition does go through, Trump stated in the last week, “But the United States should be reimbursed or should be paid a substantial amount of money, because without the United States they don’t have anything, at least having to do with the 30%.” Now - how this might be possible is very uncertain at this time. I’m not going to speculate. It has to do with exchange of money between the US Gov’t and a software co inside an acquisition at global scale. In a press conference on Tues. Aug.4th https://www.whitehouse.gov/briefings-statements/press-briefing-press-secretary-kayleigh-mcenany-8-4-2020/ , a question was posed of Press Secretary, Kayleigh Mcenany – the question was, “the President has argued that the United States should receive money in return for a potential sale, but he hasn’t really explained how. Under what authority could the Treasury collect fees from China, from Microsoft, or from any other U.S. buyer to get this done, as the President demanded?” MCENANY: Okay, so I’m not going to get ahead of the President on any official action, but he has made that point. And he and both Secretary Pompeo have said that the U.S. action — that the U.S. will take action in the coming days on Chinese apps, including TikTok — TikTok, excuse me, due to the national security risk. And we all agree that there needs to be a change, especially with TikTok collecting significant amounts of private data on users. It’s unacceptable, but I won’t get ahead of the President on what those actions look like. Another question was posed, Q Thanks very much. I wanted to ask, also on TikTok, about — Beijing has said that it may hit U.S. firms as a response to sort of slammed — this sma- — you know, smash and grab of TikTok. What do you say to that, in regard to China? That was the question. This is from the press conference notes. He asks also, “And secondly, China has not complied with its commitments under the U.S.-China phase one trade deal. We’re reporting today that, you know, they’ve only completed 5 percent, for instance, of the energy purchases in this first half of the year. Can you just sort of say?” MCENANY: Yeah, we encourage China to fulfill their obligations in the phase one China deal and to fulfill their end of the agreement. But the President remains keenly focused on TikTok and protecting the private data of millions of people in this country. And PRC’s, the People’s Republic of China’s, laws require Chinese companies to cooperate with PRC’s security and intelligence services, enabling the CCP (Chinese Communist Party) to access foreign-user data. And what this means is that these entities ultimately answer to the CCP, which actively undermines U.S. interests and is hostile to American values and the rights of individuals. And the President will stand firmly against China on this. So much of what I want to offer you here today with this information and back ground, What if TikTok is banned? What if TikTok is sold? But what if TikTok is banned and let’s start with that? I never urge businesses to put too much stock or reliance into one social media platform. Many digital marketing and social media marketing leaders say that same! Don’t put too much stock into one social media platform because it could go away. We are seeing it unfold before our eyes! We don’t own our followers. That’s another reason why you should take building your email list! Email remains one of the highest, if not the highest, converting method. Instagram released a feature that competes with TikTok called Reels on Wednesday, last Wednesday, so you can now create 15 sec. short form videos with many of the same features available on TikTok. Many TikTok Influencers are downloading other apps like Byte, with the unfolding of all of these events and announcements, and or they are putting more investment in Instagram with Reels. It could be viewed as a short term win for Facebook, but look, if it can happen to TikTok (despite the fact they are Chinese owned) it sets a precedent that nations have the power to ban or attempt to force a sale, which would be overall negative for Facebook. We are in a new era of complex data and privacy considerations, and it’s somewhat of un-chartered territory. So I hope this helped. I know sometimes you see news announcements and ask yourself, what is that all about? Why would Microsoft want to buy TikTok? Are they just doing this for governmental reasons? So I wanted to just put together a top level progression to date of information for you to just let you know what’s happening today and how it might impact you, your business and your social media efforts. Have a great day. Thank you for being here with us. Music: https://www.bensound.com