TikTok and the Sorting Hat — Remains of the Day

🌈 Abstract

The article discusses the rise of the short-video app TikTok, which was originally created in China by Bytedance and later acquired and rebranded Musical.ly. It explores how TikTok was able to achieve significant growth and popularity in the US market, despite the cultural barriers that typically hinder the success of Chinese tech companies in the US. The key factors highlighted are Bytedance's massive marketing spend and the power of TikTok's personalized algorithm, which was able to rapidly build an interest graph for users without requiring them to build a social graph.

🙋 Q&A

[01] Cultural Barriers and the Rise of TikTok

1. What were the author's initial views on the ability of Chinese tech companies to succeed in the US market? The author initially believed that the "veil of cultural ignorance" would be an impenetrable barrier for Chinese tech companies trying to succeed in the US market. He was skeptical that companies from non-WEIRD (Western, Educated, Industrialized, Rich, and Democratic) countries would be able to compete in WEIRD cultures.

2. How did TikTok manage to overcome this cultural barrier and achieve success in the US? The key factors that allowed TikTok to succeed in the US despite the cultural barriers were:

• Bytedance's massive marketing spend to rapidly acquire new users
• The power of TikTok's personalized algorithm, which was able to efficiently build an interest graph for users without requiring them to build a social graph

3. How did TikTok's algorithm differ from other social networks in its ability to overcome cultural barriers? TikTok's algorithm was able to abstract away the cultural differences by focusing on user interests rather than social connections. It could rapidly personalize the content for each user based on their interests, without requiring them to build a social graph or follow specific creators.

[02] TikTok's Algorithm and the Limitations of Social Graphs

1. What are the limitations of using a social graph to build an interest-based network? The author argues that using a social graph to approximate an interest graph has negative network effects that kick in at scale. As social networks grow, the context collapse and mismatch between a user's interests and the content from their connections becomes a problem.

2. How did TikTok's algorithm overcome the limitations of the social graph? TikTok's algorithm was able to bypass the need for a social graph by directly building an interest graph for each user based on their consumption of short-form video content. This allowed it to rapidly personalize the content without the burden of managing a social network.

3. How does TikTok's approach compare to other social networks and their attempts to build interest-based features? The author contrasts TikTok's approach with the struggles of other social networks like Facebook, Twitter, and Instagram to effectively combine social and interest-based features. TikTok was able to focus solely on the interest graph, which the author sees as a more efficient and scalable approach.

[03] TikTok's Potential Beyond Short-Form Video

1. What are some of the potential applications of TikTok's algorithm beyond short-form video? The author suggests that TikTok's algorithm could be applied to a wide range of other domains, such as personalized TV, education, shopping, job marketplaces, reading, music, podcasts, and even dating. The ability to rapidly build an interest graph for users could be transformative in these areas.

2. How does the author view TikTok's potential compared to other tech giants in the US? The author believes that TikTok, armed with its powerful algorithm, has the potential to disrupt many of the US tech giants in their core domains. He argues that these companies have struggled to effectively combine social and interest-based features, and that TikTok's approach represents a significant competitive threat.

3. What are the author's concerns about the limitations or challenges TikTok may face in realizing its full potential? The author acknowledges that TikTok is not perfect and has some flaws, such as the algorithm sometimes being too "clingy" in its personalization. He also notes that transitioning TikTok to new use cases beyond short-form video may require new product forms and capabilities that the current team may struggle with, especially if TikTok is divested from Bytedance.