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November 2018, Menlo Park, California. Mark Zuckerberg is in his office waiting for a report from one of his lieutenants. Dark bags hang under his eyes. It's been a grueling year. Zuckerberg has had to testify before a distrustful Senate. They grilled him about Facebook's handling of data privacy, Russian election interference, and the spread of disinformation. The public is souring on Facebook, and everywhere he turns, there's competition.
TikTok's downloads reportedly exceed those of Instagram, but also of Facebook, Snapchat, and YouTube. Mark Lasso is live. Okay, keep me updated on the numbers. Lasso is Facebook's attempt to directly compete with TikTok. It's an exact copy.
Users can upload 15-second videos to this new app and set them to music. After witnessing the power of music to draw people to TikTok, Zuckerberg secured licensing deals with major record labels. Now, users can add songs to posts on Lasso as well as on Facebook and Instagram. And since he's been burned before, Zuckerberg is launching Lasso quietly, so engineers can fix any problems before users publicly vent about them.
An hour later, Zuckerberg gets another call from his deputy. Mark, the numbers aren't looking good. What's going on? Barely anyone is downloading it. By February 2019, only 70,000 users have downloaded Lasso in the US. In that same three-month period, TikTok logs 40 million downloads. For Zuckerberg, it's a humiliating defeat. And TikTok is just warming up.
Hi, I'm Sarah Haggi, co-host of Wonderree's podcast Scample Insers. In our recent two-part series, Three Weddings and a Funeral, we dive into the story of a German con man who built an entire life on fake names, lies, and schemes. And the unlikely true-kind twist that brought this decades-long charade crashing down. Listen to Scample Insers on Amazon Music or wherever you get your podcasts.
In the last episode, bite dance founder, Zhang Eming, grew TikTok by acquiring musically, another video app. An Instagram founder's Kevin Systrom and Mike Krieger departed the company they built after budding heads with Facebook CEO Mark Zuckerberg. By the beginning of 2019, Zuckerberg has taken a beating. His copycat app is failed, and TikTok's parent company Bite Dance is valued at $75 billion. TikTok anticipates some dirty tricks from Facebook. But there's another enemy it didn't count on. American regulators.
在最后一集中,Bite Dance 创始人张额明通过收购另一个视频应用 Musical.ly 成功推广 TikTok。Instagram 创始人 Kevin Systrom 和 Mike Krieger 与 Facebook CEO Mark Zuckerberg 发生了冲突后离开了他们建立的公司。到 2019 年初,Zuckerberg 的模仿应用失败了,而 TikTok 的母公司 Bite Dance 的市值达到了 750 亿美元。TikTok 预计 Facebook 会采取一些肮脏的手段。但是它没有料到的是另一个敌人——美国监管机构。
This is episode four, Hitmaker.
这是第四集,Hitmaker。
February 2019, Cleveland, Ohio. A 13-year-old girl sits in her bedroom watching a TikTok video of a teenage boy. He's dressed in sweats and drinking a soda labeled Yee Yee Juice. A male voice accompanied by a banjo sings about taking a horse to an old town road. A few seconds later, the music morphs into a hip hop beat. The video cuts to the same boy now dressed like a cowboy. He's got a hat, vest, and chaps. He does a mock line dance and pretends to ride a horse.
When that video ends, another one automatically starts playing. It's the same song, but with a different teenager singing along before transforming into a cowboy. She squints at the bottom of the screen. The artist is Lil Nas X, whoever that is, she thinks, and the song's called Old Town Road. She jumps up and starts digging through her closet. She's going to record her own video set to this Old Town Road clip. First, though, she has to find some Western gear.
当那个视频结束后,下一个视频会自动播放。虽然是同一首歌曲,但是会换一个不同的青少年在唱歌,然后变成牛仔形象。她眯着眼睛看着屏幕底部。这个艺术家叫做Lil Nas X,她认为他是谁,这首歌叫做Old Town Road。她跳起来,开始在衣柜里翻找。她要录一个和这个Old Town Road剪辑相配的自己的视频。不过首先,她得找一些西部装备。
The Yee Yee Juice challenge goes viral as teenagers worldwide join in by transforming into cowboys. The silly meme set to this song will generate billions of views. Before this, Lil Nas X was a nobody. But after Old Town Road takes off on TikTok, the song tops the Billboard charts for 19 consecutive weeks. It breaks the record for the longest run ever at the number one spot.
Yee Yee果汁挑战在全球范围内变成牛仔模样的青少年之间迅速扩散,它将伴随着这首歌的愚蠢梗而产生数十亿的浏览量。在这之前,Lil Nas X不是什么名人。但是在TikTok上火起来的《Old Town Road》让这首歌连续19周位居Billboard排行榜的榜首,打破了历史上最长时间的榜首记录。
TikTok is no longer just a short-form video app. Now, it's a force to be reckoned with in the music industry. In fact, it's a hitmaker. But there are serious challenges. For starters, there's the Federal Trade Commission. The FTC alleges musically, the app Bite Dance acquired and folded into TikTok, illegally collected personal information from minors. TikTok has to pay a $5.7 million fine. But to a company like TikTok, that's jump change. And as for privacy, its Gen Z audience couldn't care less. The fine is a slight headache. But nothing like the migraine that's about to hit Zuckerberg.
March 2019, Menlo Park, California, Facebook headquarters. Zuckerberg is at his desk reviewing some Instagram figures when he gets a call. Mark, we've got a problem. What is it? The password leaks. Brian Krebs is writing about it. Zuckerberg inhales quickly. This is really bad news. Brian Krebs is a cybersecurity reporter with a widely read blog. And he's just discovered something Zuckerberg was trying to bury. Damn it. Okay, we'll prepare a statement. But we need to stop our staff talking to the press.
Zuckerberg hangs up. This is an embarrassing rookie mistake. Hundreds of millions of Facebook and Instagram passwords had been stored in plain text rather than encrypted, making them much easier to steal. When he found out about it a few months ago, Zuckerberg ordered an internal review but kept the breach top secret.
The next day, the story of the breach and the cover-up goes live. Zuckerberg scrolls the article. It's bad. Really bad. Hundreds of millions of Facebook users had their account passwords stored in plain text and searchable by thousands of Facebook employees. In some cases going back to 2012.
Zuckerberg dials his head of PR. "We need to get a statement up now." A few hours later, Instagram sends an email to notify millions of users that their passwords were exposed. They're furious that Instagram didn't tell them as soon as it discovered the problem months back. Up until now, Instagram has been sheltered from Facebook's reputation hits. But not anymore. Now, the word is that the tech behemoth doesn't care about its user's privacy. Only profits.
Luckily for Instagram, TikTok's also in the hot seat. April 2019, Chennai, India. A noisy courtroom in the ornate red building of the Madras High Court. This isn't a murder trial or an assault case. No exhibits A, B and C are TikTok videos of women dancing and preteen girls talking into their cameras.
The app is off the charts in India. With more than 240 million downloads, the country is TikTok's biggest market after America. The musical numbers at the heart of Bollywood are perfect for TikTok. People love to dance along and lip sync to popular songs. But Indian officials are unimpressed with all that. What has captured their attention is the clothing they consider to revealing. They're also worried about how young TikTok's users are. India doesn't have any child safety laws governing internet use, and officials are worried about sexual predators targeting underage users. Then, there's the recent spate of deaths and injuries that have occurred while people were filming TikToks.
It's all enough to prod the court into action. "Order, order." The noisy courtroom comes to attention. TikTok's lawyers are seated at the front alongside the group that brought the suit. "I hereby direct the government to prohibit new downloads of TikTok in India. I also restrict TV stations from broadcasting TikTok shows." TikTok must be bad.
The news is a huge blow for TikTok. Existing users will still be able to make videos and use the app. But no new users will be allowed to download it. The Indian court even asks Apple and Google to remove it from their app stores in the country. And they comply. In one fell swoop, it's impossible for TikTok to keep growing in its largest overseas market.
John gets a call from his lieutenant with the news. He listens intently, but waste no time contemplating a response. But John knows that India will set a precedent. Bydance fights back against the notion that it's a bad influence, arguing that only a tiny amount of content on TikTok is inappropriate. The matter will work its way through India's legal system at a hefty cost to buy dance.
But TikTok's entire business strategy rests on its adoption by young users on mass. As regulators pressure TikTok, Zuckerberg plots new ways to overpower John.
July 2019, Menlo Park, California. A Facebook all-hands meeting. The auditorium is filled with Facebook employees all crowded in to hear from Zuckerberg. It's been a rough month that the social media giant, the Federal Trade Commission slammed it with a five billion dollar fine over privacy breaches, including the Cambridge Analytica scandal. They've also faced political heat from 2020 presidential candidates like Senator Elizabeth Warren, who says Facebook is too big and should be broken up.
Zuckerberg steps up to the mic. There's a sense of free floating anxiety in the room. As he answers questions, he tries to put his employees at ease. But inevitably, someone asks about TikTok's growing cloud and Facebook's plan of attack.
Zuckerberg clears his throat. "Well, we've added the Explore page to Instagram, which relies on algorithm just like TikTok does. The algorithm tailors the videos and photos users receive based on their past activity. And we're making it so that the Explore page offers up more stories. Stories are casual disappearing posts that are fast becoming the primary way people consume content on Instagram. And there are way to make Instagram look and feel more like TikTok, which has a rougher, less polished feel."
But even as Zuckerberg shares how he plans to compete, he dismisses the rival app. "TikTok is growing, but they're spending a huge amount of money promoting it. What we found is that their retention is actually not that strong after they stop advertising the app. So space is still fairly nascent, and there's time for us to kind of figure out what we want to do here."
September 2019, Beijing, China. It's early morning and Zhang is already at his desk. He believes it's important to model hard work for his employees. He takes a distinctly American approach to things, even in China. He loves to quote one of Jeff Bezos' motto's Always Day One. In other words, companies should operate like it's their first day and they have to prove themselves. So even though TikTok now has offices around the world, he's still grinding away as if it were a tiny startup.
It's Alex Zhu, TikTok's CEO and the guy who started musically. It's late in the evening in California, so Zhang figures this must be urgent. "Eaming, we've got a problem." "What is it?" "The Guardian just published their piece. It's even worse than we thought." Zhang pauses. He knew the Guardian was breaking a story about TikTok because bite dance provided a comment. He starts searching for the article. Authorities in Beijing are particularly sensitive about these political matters. They see any discussion of them as challenges to their authority. "This is not good. We need to put out our own blog post." What TikTok wants to avoid at all costs is any impression that it censored posts during the political unrest over the summer in Hong Kong. It's an accusation that's still swirling. The company tells the Guardian that the leaked documents are old. It says those moderator guidelines were written and then scrapped well before the protests against Chinese control took place in Hong Kong. Luckily for TikTok, once again its young users don't even seem to notice the controversy.
October 2019, Wintergarden, Florida, just outside of Orlando. A freshman walks down the hallway of West Orange High School, clutching her books in phone. She passes an advertisement on a whiteboard and pauses to read it. "Want to be TikTok famous? Join TikTok Club." After school she heads to the classroom where TikTok Club is meeting. The desks are filled with students snacking on juice and cheetos waiting for the projector presentation. She sits down and the club president presses play. It's a series of TikToks that are serving as an inspiration for the club. Then they split into groups. One group heads to the hallway and learns a popular dance to "teach me how to duggie". The student cameraman takes the phone and records them. Then he clicks posts to the world. It's just like drama club but with a potentially global audience. But even as teens embrace TikTok. On Capitol Hill, one US senator is watching the app's skyrocketing popularity with growing alarm.
October 2019. Senator Marco Rubio writes a letter to the US Secretary of the Treasury, Stephen Manuchin, asking the US government to investigate TikTok. He says that apps like TikTok are increasingly being used to censor content deemed sensitive by the Chinese government. And he claims that TikTok's recent acquisition of musically could have national security implications. He writes, "The Chinese government's nefarious efforts to censor information inside free societies around the world cannot be accepted and pose serious long-term challenges to the US and our allies." It's a nightmare scenario for the app, which is counting on further expansion in the US, its biggest market.
So Zhu goes on the charm offensive, appearing in a splashy New York Times profile. He insists that if China's leader Xi Jinping asked him to hand over data, he wouldn't do it. Zhang is desperate to persuade American leaders of TikTok's independence that their data is safe in his hands. But TikTok's problems with the press and American public officials are only just beginning.
Hi, I'm Lindsey Graham, the host of Wondries podcast American scandal. We bring to lie some of the biggest controversies in US history, presidential lies, environmental disasters, and corporate fraud. In our newest series, we look at a covert US operation that toppled a democratic government in Iran. In 1951, Muhammad Mosadek was elected Iran's prime minister. Mosadek was largely focused on strengthening his country's democratic institutions. But he also sought to nationalize Iran's oil industry, letting his country's citizens profit from their own natural resources. But as Mosadek carried out his sweeping reforms, US officials grew concerned that Iran would soon fall under the sway of communists. And with the blessing of America's top political leaders, the CIA launched a mission to oust Mosadek from power. The campaign involved bribes, psychological warfare, and staged riots. And it all led to a showdown that promised to reshape the Middle East for decades. Follow American scandal wherever you get your podcasts, and you can listen ad-free on the Amazon Music or Wondry app.
October 2019, Georgetown University in Washington, D.C. A large auditorium with maroon carpets and dark wooden panels. Zuckerberg steps up to a podium and blazes into the university crest. He's dressed in a black sweater, his hair cropped short.
It's really great to be here at Georgetown with all of you today. People having the power to express themselves at scale is a new kind of force in the world. Facebook has been through the ringer lately with politicians and executives criticizing its role in spreading disinformation. And I understand the concerns that people have about how tech platforms have centralized power.
But I actually believe that the much bigger story is how much these platforms have decentralized power by putting it directly into people's hands. Zuckerberg maintains his platform champion's free speech. And to prove it, the company just announced it won't fact-check political advertisements or moderate comments, unlike traditional media outlets. Zuckerberg doesn't believe its Facebook's job to be the arbiter of truth.
He thought this would put him on the offensive. But now he's getting pummeled from all sides, including from critics who claim he's giving a platform to hate speech and disinformation. So he's coming out to make a rare public speech.
Zuckerberg clears his throat. He looks out at the 700 students filling the auditorium, some of whom have their iPhones out to record him. And I'm here today because I believe that we must continue to stand for free expression. Then in a move straight out of the art of war, he goes on the attack. He points his finger at a company he says does the exact opposite, bite dance.
China is building its own internet focused on very different values. And it's now exporting their vision of the internet to other countries. Zuckerberg references reports that recent Hong Kong protests were censored on TikTok. An accusation bite dance has denied. He holds up Facebook as a pro-democracy tool. While our services like WhatsApp are used by protesters and activists everywhere due to strong encryption and privacy protections on TikTok, the Chinese app growing quickly around the world mentions of these same protests are censored, even here in the US.
He closes with a powerful rhetorical question. Is that the internet that we want? Zuckerberg's approach isn't subtle. His positioning Facebook is a good American company, and TikTok is a bad Chinese company, a foreign threat to freedom.
In Beijing, Zhang reads the reports of Zuckerberg's speech with annoyance. He gets his head PR rep on the phone. Zuckerberg's just doing this to deflect criticism. We need to get a statement out denying the censorship. Yes, he may. I can't believe he would do this after copying us again. First lasso, and now clips? Zhang is talking about a new feature Instagram is testing called clips. Users can edit videos by cutting clips together and adding music. Exactly like TikTok.
Zuckerberg's comments at Georgetown are salt in the wound. I will not be a scapegoat. A bite dance spokesman sends out a statement to reporters insisting that the Chinese government doesn't require TikTok to censor content. We have said clearly that these accusations are false. This is an unfortunate attempt by Mark Zuckerberg to redirect scrutiny onto a competitor that he's failed to copy.
It should hearten Zhang to know US lawmakers aren't buying Zuckerberg's hands-off approach either. Senator Elizabeth Warren sends out a scathing tweet, accusing Facebook of making millions by spreading misinformation and outright lies. Mark Zuckerberg's speech today shows how little he's learned from 2016 and how unprepared Facebook is to handle the 2020 election.
Vice President Joe Biden's campaign bashes Zuckerberg for using the Constitution as a shield for its bottom line. So far, Zuckerberg has only made matters worse. He's angered politicians and infuriated his chief competitor. The last thing Zhang wants is to position this as a fight between two tech companies caught in a geopolitical battle. Unfortunately for Zhang, that seems unavoidable.
November 2019, Zhang is in his office in Beijing. It's been a stressful few weeks. As TikTok's user ship explodes, so does the scrutiny by US politicians. Two US lawmakers call for a national security probe. Their concern TikTok collects user data and censors content. Zhang's worried about what regulators might do next.
Alex Yu, TikTok's CEO, called Zhang with a worrisome update. Zhang takes his glasses off and rubs his eyes. Zhang furrows his brow. Why? That happened two years ago. Zhang is frustrated. He feels as though bite dances getting caught up and escalating tensions between China and the US. Zuckerberg's speech didn't help.
TikTok的CEO Alex Yu给张打了一个令人担忧的电话更新。张取下眼镜揉了揉眼睛,皱着眉头。为什么?这已经发生两年了。张感到沮丧。他觉得抖音因为被卷入了中国和美国之间的紧张关系而不得不受到影响。扎克伯格的讲话也没有帮助。
If this government body deems the deal dangerous to US national security, it could force Bite Dance to sell Musically, a move that would squash TikTok in the US. Without Musically and its users, TikTok would be nowhere near as big in the US. Zhang bought Musically to make headway with American teens. Undoing the deal would be a catastrophe for Bite Dance. And this isn't just conjecture.
There's a precedent. The same committee recently forced another Chinese company to give up its control of the dating app Grindr. The committee claimed ownership of Grindr might give the Chinese government access to US user's sensitive personal information.
Zhang sighs into the receiver. "We need you to go on the offensive."
张在电话里叹了口气。“我们需要你主动出击。”
"Okay, what do you want me to do?"
好的,你想让我做什么?
Zhang thinks for a few seconds. "Get out there. Do some interviews with the big papers and tell them again and again that Chinese government does not ask us to censor our app. Content policies are led by a team in America."
But TikTok has another scandal around the corner. One that is going to make that claim very, very hard to back up.
但是TikTok即将有另一个丑闻浮出水面。这将让他们的那个说法非常非常难以支持。
A teenage girl with long black hair sits in front of her phone's camera. It's in selfie mode recording her face. She pulls out an eyelash curler and begins recording. The video begins like any one of the other many makeup tutorials on TikTok. But very quickly takes a turn.
"Hi guys, I want to teach you guys how to get long lashes. So the first thing you need to do is grab your lash color, curl your lashes obviously. Then you're going to put them down and use your phone that you're using right now to search up what's happening in China, how they're getting concentration came storing innocent Muslims in their people that go."
The teenager begins talking about what's happening to weager Muslims in China. The Chinese government has been rounding up members of the minority group and putting them in internment camps. It sees their devotion to Islam as a threat to the communist party. The actions have been roundly criticized by human rights groups. But the government insists the camps are innocent job training facilities.
The video gets shared and quickly racks up nearly a half a million likes. But then the account gets suspended. The teenager heads to Twitter complaining that TikTok suspended her account for spreading awareness about the weagers. The New York Times picks up the story.
In Beijing, Zhang reads the news and sighs, "this looks terrible." He calls up TikTok's CEO, Zhu. "We need to deny this and say we're looking into it."
"Okay, you mean I'm on it. And for God's sake, get her account back."
"好的,你的意思是我会处理。天呐,请把她的账户找回来。"
TikTok writes a blog post denying they censored her. The company claims her account was banned because of a different video she posted that included an image of Osama bin Laden, a violation of TikTok's terrorism policy. Her account is restored. But the scandal cements it. TikTok has an image problem.
They're going to have a harder time luring in new users if they're seen as an anti-free speech platform that cowtows to China's censors. By the end of 2019, TikTok is bringing in $18 billion in revenue with 1.4 billion downloads since its launch. Bad PR like this could topple the company just as it's fighting for its right to keep operating.
As TikTok keeps picking up steam, Instagram is about to level up. Whether TikTok has the X factor, that's special something that makes an app unstoppable. That is the billion dollar question.
On the next episode, a global pandemic puts TikTok in the spotlight. And Instagram strikes back with a new feature it pushes out to its 1 billion users. But TikTok has to contend with a new foe. America's highest office.
A Prime Members You Can Binge Every Episode of Business Wars Add Free on Amazon Music. Download the Amazon Music app today. Or you can listen Add Free with Wondery Plus in Apple Podcasts.
From Wondery, this is episode 4 of TikTok vs Instagram for Business Wars.
来自Wondery,这是商战节目中第4集- TikTok与Instagram之间的竞争。
A quick note about recreations you've been hearing: in most cases, we can't know exactly what was said in those scenes or dramatizations, but they're based on historical research.
I'm your host David Brown, Natalie Robameh wrote this story. Karen Low is our senior producer and editor, edited and produced by Emily Frost, sound designed by Kyle Randall. Kate Young is our associate producer. Our executive producers are Jenny Lauer Beckman and Marshall Lui created by Ernon Lopez for Wondery.