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TikTok’s U.S. ownership shift raises creator concerns over algorithm changes

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The picture of TikTok’s future in the U.S. is starting to come into focus. With a U.S. ownership deal looming, influencers and content creators fear the algorithm, TikTok’s so-called secret sauce, will become a political battleground.
More details of the proposed deal were announced last week. U.S. based companies, like Oracle, venture capital firm Andreessen Horowitz, private equity investment group Silver Lake and Fox Corp, the parent company of Fox News, would be given majority ownership over the app.
In other words, privately held U.S. entities would control the algorithm and data under a regulatory framework. Official policy changes haven’t kicked in yet, and a potential ban is still on the table, but the news has creators wary.
“I don’t know how much it’s going to be impacted or in what ways. But I know no matter what, it’s going to be less effective and likely more censored,” said Trevor Barrett, a full-time beauty content creator based in Pennsylvania. Barrett, who goes by @trevorbarrett on social media, has 1.8 million followers on TikTok, making it the beauty creator’s biggest platform.
TikTok’s algorithm has been the catalyst for virality and creator success. But as a U.S. ownership deal is on the horizon, creators fear a U.S. regulated version of the algorithm could mean content suppression, less reach and an unpredictable shift in what content gets shown.
A new U.S.-based ownership structure calls into question what rules apply and to who, creators say. Changes as to how content gets surfaced could impact views, trickling down to everything from brand deals to creator program payouts.
For some creators, TikTok is a lifeline. The app accounts for 75-80% of Barrett’s income. (Barrett did not disclose a specific dollar amount.) Kyshawn Lane, a part-time creator based in New Jersey, monetizes TikTok through affiliate and storefront links, as well as brand deals. Lane’s content (@weeklyhomecheck on social platforms) focuses on home improvement, making it more insulated from political discourse and the so-called culture wars. Barrett’s beauty content falls into a similar category. Neither creator, however, feels insulated, they told Digiday. Rather, there’s worry that while the U.S. government won’t directly operate the platform, oversight through ownership stands to change how content is filtered.
“It’s like walking on eggshells and never knowing when that blanket is going to be slipped up from underneath your feet, and you’re just going to be left with nothing,” Lane said.
While TikTok’s black box-style algorithm has been a source of virality, it has also been a source of frustration for creators looking to sustain that virality to keep viewership and engagement numbers attractive for advertisers.
Any further changes to an already mysterious algorithm could make it harder to build consistency, said Ella Wills, content creator and head of marketing at WY Partners advisory firm.
“One week your content can hit, the next it barely lands, even if it’s the same format,” she said in an email to Digiday. “That unpredictability makes brand deals more complicated, because brands want reliable reach.”
As has been the trend with the ever-looming TikTok ban, contingency plans are in place to shift to other platforms like Instagram or YouTube should the algorithm be throttled by new ownership. For Nya Étienne, a creator, freelance and digital strategist based in New York City, contingency plans shifted into play back in January. Étienne, who goes by @nya.etienne on social, has more than 28,000 followers on TikTok, where she focuses her content on culture, travel, career and creativity. During the TikTok blackout back in January, Étienne started prioritizing in-person events and looking into newsletters, email lists and the like to grow her community, she said.
Meanwhile, marketers are riding it out on TikTok until the bitter end. For the most part, creators seem to be following suit. Contingency plans are in place. But for now, creators like Barrett and Lane have no immediate plans to jump ship.
“Hope is holding me back that it will continue to be here, TikTok will not cancel,” said Lane.
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