TikTok is making waves by unveiling plans to establish live-stream studios in Los Angeles, creating a WeWork-style space for creators to produce high-quality content. This strategic move, inspired by the success of Douyin in China, signifies TikTok's commitment to globalizing its live-stream commerce efforts.
According to sources from The Information, TikTok is gearing up to launch multiple studios in key cities, including Los Angeles, where creators can not only livestream but also sell products. The initiative mirrors Douyin's thriving model, which uses dedicated studios to enhance the professional quality of live broadcasts.
TikTok's push into live-stream commerce is fueled by the success of shopping streams on Douyin, now a major revenue driver. By creating centralized hubs for creators, TikTok aims to facilitate not only content creation but also to pitch and sell products, similar to the Chinese model.
While TikTok has been experimenting with in-app shopping, Western markets have been slower to adopt commerce streams compared to their Eastern counterparts. However, TikTok's success in Singapore, Malaysia, and Indonesia indicates a growing interest in shopping initiatives.
The platform is set to explore new initiatives in 2024, expanding shopping options, including food delivery, and potentially introducing AI-characters as live-stream hosts. AI hosts, a phenomenon in the Chinese market, could transform the live-streaming landscape by offering 24/7 streaming capabilities and driving significant sales.
As TikTok continues its expansion into live-stream commerce, it faces the challenge of striking the right balance between commercial content and user experience. With some users expressing concerns about the app becoming too commercial, TikTok must navigate this delicate balance as it introduces more in-stream shopping initiatives and explores innovative features.