REPORT: TIKTOK USAGE SLOWS DOWN

TikTok’s user growth is stagnating for the first time in its history, and once users get deep into their 20s, they abandon the app to focus on work, the Wall Street Journal has reported.

Based on its research, the Journal stated that U.S. average monthly users between 18 and 24 declined by nearly 9% in 2023 from 2022 and that daily time spent on the app grew by only 1%. Instagram, by comparison, grew 10% over the past year by that metric.

Driving the time spent—an indicator of paramount importance to the music business—are Instagram Reels, which stands to benefit from Universal Music Group’s February decision to vacate TikTok. Several promotional campaigns, including one for Kacey Musgraves, have been transferred to Instagram.

According to the Wall Street Journal, TikTok reached out to Universal to restart negotiations prior to the introduction in Congress of a bill to force parent company ByteDance to sell the app or face a ban. No meaningful progress has been made, the Journal stated.