Bytedance looking to enter the online education industry amid increasing censorships
Jan 23, 2019 (China Knowledge) - Operator of popular short video app Tik Tok, aka Douyin in China; is making a foray into the online education industry as it looks to diversify away from the online content business amid tighter regulatory controls which demand for more censorship.
The heightened controls have increased the workload of many content providers in China as they now have to take on more responsibility to scrutinize their own platforms in order to maintain compliance with government regulations.
Bytedance currently derives most of its revenue from advertisements placed on its content platforms such as Tik Tok and Jinri Toutiao. The company also took a hit last year from a slowing economy in China which resulted in lower advertising growth in the country, nearly failing to hit its 2018 revenue target of between RMB 50 billion to RMB 55 billion.
The move into online education will help the company to greatly diversify its income streams and serve more users. Earlier this week, Bytedance confirmed that it has acquired certain patents from struggling Chinese smartphone maker Smartisan to make its entry into the online education industry.
Last year, the company took its first step into the online education sector with a beta launch of Gogokid which is an online tutoring platform that connects Chinese students with foreign English teachers.
Earlier this year, the company has launched a paid content app named Haohao Xuexi which provides career advice, wealth management lessons, parenting and various other content.
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