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TikTok cashes in đ€
And an AI girlfriend makes bank.
TOGETHER WITH
Itâs Monday and Ready Player One author Ernest Cline is teaming up with Futurverse to turn his dystopian fictional metaverse âinto a tangible reality.â
CASHING IN đ€
TikTok Shop wants to score $17.5 billion in U.S. revenue this year. Hereâs why thatâs bad news for sellers:
TikTokâs New Yearâs resolution doesnât bode well for Amazonâor for U.S.-based Shop sellers.
The plan: According to Bloomberg, TikTok wants to increase U.S. Shop earnings by 10x in 2024. That ambitious target would bring Shopâs annual stateside revenue to around $17.5 billion (although TikTok said in a statement that those figures are âinaccurateâ).
The motivation: TikTok Shop didnât have such a great start in the Western world. After a sluggish launch in the U.K., TikTok went all out to ensure success in the U.S. by offering low commissions, high subsidies, and new ecommerce features.
Those tactics contributed to a wildly successful holiday seasonâand a projected $500 million in annual U.S. losses.
The fine print: To make up for that deficit, TikTok will nearly quadruple its cut of sellersâ earnings over the next few months.
The platform announced on Friday that it plans to increase its current commissionâwhich grants it 2% and 30 cents of each transactionâto 8% within the next few months.
Per The Information, TikTokâs cut of âmost salesâ will go up to 6% on April 1 and will reach 8% on July 1. (A 3% commission rate will be applied to some sales totaling $10,000+.)
The end result: TikTok Shop sellers should prepare to earn less from each transaction, but not substantially less than they would earn on Amazon.
Once it reaches 8%, TikTokâs Shop commission rate will be similar to those offered by Amazonâmeaning the platform can cash in (and fund further expansion) without worrying about losing sellers to its biggest U.S. rival.
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HEADLINES IN BRIEF đ°
Recess Therapy host Julian Shapiro-Barnum and two of his young co-stars, Amina and Avery, conducted red carpet interviews ahead of the 2024 Golden Globes. (Tubefilter)
âBuyers who purchased an egg from Logan Paulâs CryptoZoo NFT collection can now receive a $227 refundâif they agree not to sue. (Tubefilter)
âInstagram head Adam Mosseri assured users on Friday that his team is working to limit the appearance of âlow-qualityâ (i.e. hateful and/or unsettling) Threads recommendations. (Engadget)
âNetflix has reportedly held âdiscussionsâ about the possibility of bringing ads and in-app purchases to its mobile games. (TechCrunch)
COLUMNS âą MILLIONAIRES đ
This comedy creator is a TikTok star (but sheâs still âa YouTube girly at heartâ)
Drea always knew she wanted to be an entertainer, but she âdidnât know how exactly it would happen.â Then, in October 2022, her niece accidentally left a doll at her house.
How it started: That forgotten toy changed everything. Seeing the doll inspired Drea to post a funny TikTok videoâa just-for-fun clip about âhow I felt my mom combed my hair when I was a kid.â She filmed a quick scene, uploaded the video, and went about her dayâŠuntil millions of views and thousands of comments began blowing up her phone.
By June, Dreaâs TikTok account had collected over 1 million followers.
How itâs going: That first viral video now claims more than 56 million views on TikTok and another 130 million on YouTubeâand Dreaâs career has grown just as quickly.
The comedy star is now a full-time content creator with 2.5 million TikTok followers, 2.4 million YouTube subscribers, and nearly 360,000 Instagram followers.
Whatâs up next: Drea is âa YouTube girly at heart.â Although she says sheâll ânever take awayâ the short-form clips her fans love, sheâs ready to give long-form video a try, too.
That content might look a little different than what viewers are used to. In addition to rolling out more of her signature comedy skits, Drea wants to create âa whole arsenalâ of videos focused on âbeauty, lifestyle, hair, fashion, and whatnot.â
And, in the meantime, there might just be some super-secret merch on the way.
Find out more about Dreaâand the hundreds of rising stars and social media millionaires weâve interviewed over the yearsâright here on Tubefilter.com.
AMOURANTH AI
Will AI influencers be the next big thing in creator monetization?
Over the last few months, Amouranth's âAI girlfriendâ concept has raised plenty of eyebrows. Now, itâs also raising thousands of dollars.
The big idea: Last May, Amouranth (aka Kaitlyn Siragusa) announced that she had teamed up with Forever Voices to develop âAmouranth AI,â a digital âcompanionâ trained to mimic her âunique personality and inflections.â
That futuristic offering (which also sends pictures, voice clips, and âcustom videosâ) debuted earlier this month. Within 24 hours of sales activity, it had already collected $34,000.
As one of the internetâs highest-paid streamers, this isnât the first time Siragusa has made bank through out-of-the-box monetization methods. The creator has claimed to make $15,000 by hosting âsleep streamsâ (during which viewers watch her snooze) and regularly surpasses seven figures a month on OnlyFans.
The pros: Even if a creator is unwilling to catch some zâs on camera (or go the NSFW route), paid AI counterparts still offer an interestingâand potentially lucrativeâopportunity to keep fans engaged while off-camera.
AI chatbots have potential in the influencer marketing world, too: Meta has already hooked up with stars like MrBeast and Charli DâAmelio to create similar (although far less risquĂ©) AI characters.
The cons: Forever Voices says it aims to âdemocratize accessâ to creators and their fans. But is that a safe option for either group?
Amouranthâs critics have pointed out that charging fans for access to influencer bots could severely worsen parasocial dynamics and feed into unhealthy behaviors toward streamersâa daunting possibility for creators who already face high levels of online harassment.
WATCH THIS đș
Welcome to Pantdora: Kingdom of the Ants
If youâve ever wondered what itâs like to play God (or you just like ants), then head over to AntsCanada:
The creator behind the Canadian ant-keeping biz has set up his very own vivariumâaka Pantdoraâwhere ants, geckos, roaches, and a recently-introduced âapex predatorâ coexist in a miniature rainforest.
Bug-loving viewers can get a birdâs-eye view of the National Geographic-style drama here.
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Today's newsletter is from: Emily Burton, Sam Gutelle, and Josh Cohen. Drew Baldwin helped edit, too. It's a team effort.