Douyin's Power Move: TikTok Rival Inks Deal with Tencent to Boost Video Exposure

  • ByteDance Ltd owned TikTok counterpart Douyin and Tencent Holding Ltd (OTC:TCEHY), agreed to explore the joint promotion of short and long videos keeping their bitter relations marked by lawsuits and public brawls at bay.
  • Users of platforms in the Douyin Group, including Douyin, Xigua Video, and Toutiao, can create short videos using the content in long videos on Tencent platforms, Reuters reports.
  • Tencent was at loggerheads with Douyin users for creating short videos using copyrighted material in long videos without obtaining approval.
  • "The latest development not only helps to settle the ongoing IP disputes but also helps to lay a framework for future collaborations between the two video platforms," MorningStar analyst Ivan Su said.
  • Chinese regulators called out the domestic tech giants for creating "walled gardens" that prevent rivals' links and services from being shared on their platforms.
  • Tencent saw advertising in its nascent short video platform becoming a potential revenue driver.
  • The new focus puts it in direct competition with China's leading short video players Douyin and Kuaishou Technology (OTC:KUASF).
  • Price Action: TCEHY shares closed higher by 1.75% at $49.29 on Friday.
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