YouTube star MrBeast has a new competition show that will debut Thursday on Amazon Prime Video.
BI viewed a copy of a contestant release form and other documents for the preliminary "Beast Games" round.
An entertainment attorney said the documents were fairly standard but expansive in their terms.
Documents obtained by Business Insider reveal the terms that contestants of MrBeast's competition show, "Beast Games," were asked to agree to during a preliminary round.
The terms prohibit contestants from disclosing information about the show, which debuts Thursday on Amazon Prime Video. Contestants who break the agreement prior to the last episode airing must pay the producer and network $500,000 for each breach. After the last episode airs, each breach would cost contestants $100,000, the documents said.
The documents also ask contestants to agree that their portrayal in the program may be "disparaging, defamatory, embarrassing, or of an otherwise unfavorable nature," and may expose them to "public ridicule, humiliation, or condemnation."
Daniel J. Ain, an entertainment attorney at RPJ Law, said the terms are largely standard for a competition show, but some โ like the threat of a $500,000 charge for each breach โ are particularly expansive.
"The producers use every available tool to give them ultimate flexibility to make the show and protect themselves from liability," Ain told BI, calling the documents a "contestant agreement on steroids."
"Beast Games" is a 10-episode physical competition show in which contestants compete for a $5 million prize. YouTube's top star โ whose real name is Jimmy Donaldson โ is the host.
The show has attracted some controversy ahead of its release. A New York Times report in August cited "over a dozen" participants who said they didn't receive enough food or medical care during the preliminary round of competition in Las Vegas.
The documents obtained by Business Insider relate to the Las Vegas taping, where over 2,000 contestants participated in physical challenges designed to see who would make the show's official production round in Toronto.
The documents include information about the show, a contestant questionnaire form, and an outline of the show's official rules and protocols. By signing the form, contestants gave full consent to the use of hidden cameras and recording devices, gave producers full discretion to edit footage, and agreed to participate for no money. Potential prizes were the only form of compensation.
A person close to the production characterized the Las Vegas production as a "promo shoot" for the show and said Amazon wasn't involved. Amazon did not respond to a request for comment from BI.
Read 24 pages of the documents below:
Note: BI omitted some pages from the document that included the contestant's personal information and a few pages with minimal or repeated information.
TikTok faces a potential ban in the US if ByteDance doesn't divest by January 19.
The ban could impact creators relying on TikTok for income through brand deals and e-commerce.
Instagram and YouTube may benefit from a ban as creators shift their efforts.
TikTok creators and their teams are starting to take the threat of a ban in the US more seriously โ and some wish they had begun preparing earlier.
TikTok could be yanked from US app stores as early as January 19 unless its Chinese owner, ByteDance, divests. TikTok is challenging the law in court but was just handed another legal defeat this month.
While a ban might annoy many of TikTok's 170 million US users, it would be far more impactful for those creators who use it to make money through brand deals, its Creator Rewards Program, or other methods.
"Looking back, I wish I had encouraged my talent to focus on YouTube Shorts about a year ago โ but no time like the present," said Estella Struck, founder of Viviene New York, referring to YouTube's short-form video product. Viviene New York is a marketing agency that works with brands and several TikTok-native creators.
"We're already preparing to diversify by focusing heavily on Instagram, YouTube, and even LinkedIn for short-form video content," Struck added.
Other creator-economy insiders expressed similar sentiments to BI about diversification. They generally felt that they could continue to build up audiences on other platforms or income through other gigs.
"The creator economy would take a blow, but it wouldn't be fatal," said Jasmine Enberg, VP and principal analyst at EMARKETER. "While over half of US companies use TikTok to work with creators and influencers, TikTok accounts for 17.2% of total spending."
Some parts of the creator economy could be hit harder than others, however.
Barbara Jones, CEO of Outshine Talent, said a ban "would be crushing for the e-commerce side," like those creators and brands earning money through TikTok Shop.
"Live e-commerce is really just getting started in the US, and TikTok Shop is leading the way," Jones said. "So, I think that side would be devastated. I think for content creators that make short-form content, they will be less affected."
'We are acting as if it may actually be gone in January'
Jones said she's gotten "a lot of calls of concerns and worry" about a potential TikTok ban.
Many creators and managers are putting together post-TikTok plans, even if they think there's a chance it could stick around.
"We are acting as if it may actually be gone in January despite, in my opinion, not thinking it will actually be gone," Sam Saideman, CEO of talent firm Innovo, told BI. "Best case, it doesn't go away."
Some ways of preparing are easier than others, Saideman said.
"Low-hanging fruit is to migrate fans to other social platforms," Saideman said. "Harder sells are to migrate those audiences to a place that is not reliant on algorithms such as SMS lists, email lists, or exclusive membership groups."
TikToker Joseph Arujo, who has over 830,000 followers, said he believes that even if TikTok is banned, it'll be short-lived, and ByteDance would be forced to sell.
"I think it's scary now that there is this deadline," Arujo said. "But I'm weighing out my options and going to other platforms."
Arujo isn't the only creator thinking about making changes. Justine, a content creator who has almost 260,000 followers on TikTok, said she isn't too worried about the potential ban but is thinking about "shifting a lot of focus" to Instagram and YouTube.
"I think regardless of what job you have, what role you have, having more streams of income, especially in this economy, is almost essential," said Justine, who asked her last name not be used for privacy reasons.
Creator Lauren Schiller, cofounder of the clothing company OGBFF, said that in the short term, she would post to Instagram reels, and then look to make longer-format videos for YouTube and post on her brand's blog.
A TikTok ban wouldn't impact all creators equally, Enberg said.
"A ban would be detrimental to up-and-coming creators and small businesses that rely solely or primarily on the app," Enberg said. "Big brands and established creators would also be disrupted, but can better withstand the upheaval as they're more likely to have diversified their channels and have large, engaged audiences on other platforms."
Megan, who asked her last name not be used for privacy reasons, is a stay-at-home mom who uses TikTok Shop as a side hustle to earn extra income through affiliate commissions.
"It's good to save, to take the trips, to buy Christmas gifts, to live a little more not so paycheck to paycheck," she said, adding that she earned nearly $8,000 in TikTok commissions one month.
She said she planned to allocate time to her other side hustles to make money if TikTok is banned.
The platforms creators and brands are turning to
"If there's a shift, I believe Instagram will likely take center stage, especially with its direct product-linking capabilities," Struck said.
Enberg said she thought Instagram and YouTube would be the biggest beneficiaries as they both have short-form video products that are natural fits for TikTokers.
"But even if a platform can replicate the technology, they can't force a change in culture," she said. "The type of viral, FOMO and trend-driven behavior doesn't exist on reels, even as the platform has tweaked its algorithm to better serve relevant content, including from smaller creators, to users."
Nya-Gabriella Parchment, cohead of brand partnerships at influencer firm Digital Brand Architects, said a lot of brands are betting on Instagram reels.
"It's easier to convert on Instagram, with ways to link out, so usually brands still use Instagram as their bedrock," Parchment said.
Parchment said creators are also interested in Snapchat again.
Arujo is one of them.
"Ever since the first threat of a TikTok ban, I decided I'm not going to rely on just this," Arujo said.
"Snapchat has been my No. 1," he said.
EMARKETER is owned by Business Insider's partner company Axel Springer.
LinkedIn has been gradually rolling out a TikTok-like video feed.
Some creators say making videos has supercharged their engagement on the platform.
LinkedIn is encouraging creators to post "short" and "snappy" videos.
LinkedIn is taking aim at TikTok โ and creators are intrigued.
Since the spring, the Microsoft-owned platform has been gradually rolling out a TikTok-style vertical video feed that features career advice, industry news, and other creator content. A LinkedIn spokesperson said "most" users now have access to it. Videos can also appear in the app's main feed.
Meghana Dhar, a creator with 15,000 LinkedIn followers, said her LinkedIn "engagement has just exploded" since she started posting videos. She added that LinkedIn moving toward video "indicates that they're taking creators really seriously."
Several creators, including Dhar, told BI that they often see much more engagement and impressions on their video posts than on their text or photo ones. Engagement refers to interactions with a post, such as a like, while impressions are how many people view a piece of content.
Dhar said, for example, that a recent text post she shared on LinkedIn got about 10,000 impressions, while a video of her talking to the camera hit over 2 million impressions. Marketing strategist Caroline Giegerich found that her LinkedIn video posts reached three times as many people as her text posts did.
A LinkedIn spokesperson said video posts โ including videos shared from individual profiles and pages โ get 1.4 times as much engagement on average as other posts on LinkedIn.
While the concept of LinkedIn video might feel strange to some users, it could be a key for the platform to cement itself as a core platform for creators, unlock more ad revenue,ย and keep people checking their feeds regularly. The top platforms for creators, such as YouTube, TikTok, and Instagram, are all heavily focused on video.
"I am on a personal mission to make LinkedIn a daily habit for people," Jamรฉ Jackson, a LinkedIn community manager, told BI. "We are so much more than just a platform for job searching."
This isn't LinkedIn's first attempt at video. In 2019, LinkedIn launched its live video product. In 2020, it launched a "Stories" feature, which lets users share disappearing videos (that shut down in 2021).
Still, there is some indication that this current, TikTok-like push might be what finally breaks through.
"Our investments in rich formats, like video, strengthen our leadership in B2B advertising and amplify the value we deliver to our customers," Microsoft CEO Satya Nadella said during the company's October earnings call. "Weekly immersive video views increased 6x quarter-over-quarter and total video viewership on LinkedIn is up 36% year-over-year."
LinkedIn's do's and don'ts for video
So, what makes a good LinkedIn video?
Jackson said to avoid creating content that "feels way toosales-y and promotional" and to keep the video to under two minutes: short, snappy, and actionable.
"The call to action is important because I always like to secretly tell people that the comments section is the liquid gold of LinkedIn," Jackson said. "The way you do that is by inviting people to the party, inviting them to the table after you've created that video, asking them to share in the comments things that they have learned."
LinkedIn has also seen an uptick in "faceless video content," where people aren't front and center, Jackson said, adding that it had generally performed well.
The platform has encouraged CEOs and executives to talk about breaking news as well, Jackson said.
Creators are using video to grow audiences but monetization lags
Creators generally say that compared to other platforms like TikTok and Instagram, LinkedIn is much less saturated โ and that's an opportunity to build audiences.
"I've been posting on LinkedIn almost daily, certainly every weekday for a couple of years now," said Avi Gandhi, who has 23,000 LinkedIn followers.
Gandhi has recently focused on short-form video content, posting three to four times a week and often promoting his newsletter by calling out the name and including a link to subscribe at the end of the text post.
Career coach and creator Jahleane Dolne said she often uses LinkedIn to post podcast clips. While her largest following is on TikTok (about 34,000), Dolne said her podcast clips are a better fit for the LinkedIn audience.
Despite the audience growth for some creators, the ecosystem for making money on LinkedIn isn't yet fully developed. That may be changing, though. Three of the creators BI spoke with said they were either already working on LinkedIn-focused brand deals or actively reaching out to potential sponsors. And earlier this year, the marketing agency Creator Authority launched with a focus on LinkedIn.
However, the platform has not yet introduced a monetization program similar to those on Instagram, TikTok, or YouTube that directly pays creators.
"If LinkedIn launches monetization for videos where you could start making money from the videos that you post, that would be huge," Gandhi said. "That would be incredible and that would make it all worth it."
Connor Franta is suing his Heard Well business partners. He says they used the company as a "piggy bank."
Franta accuses them of embezzlement to the tune of more than $1 million.
Lawyers for all three defendants denied the allegations to Business Insider.
YouTube star Connor Franta is suing his business partners, alleging in a lawsuit that they embezzled more than $1 million from the company they cofounded in 2015.
In the suit, filed in California Superior Court this week, Franta โ a 32-year-old YouTuber with 4.8 million subscribers โ is suing his cofounders in Heard Well, a music label that works with influencers. He also names the company's business manager โ who is the father of one of the cofounders โ as a defendant, accusing him of turning a blind eye to the alleged theft.
The business partners and manager all denied the allegations in statements to Business Insider.
The suit alleges Heard Well cofounder Jeremy Wineberg used an American Express Black Card obtained in the company's name for personal expenses, including international travel, concert tickets, tattoos, groceries, and plastic surgery. The suit says Wineberg "systematically looted the company of essentially every penny," using Heard Well funds to pay the Amex balances.
Another cofounder, Franta's former CAA agent Andrew Graham, also "converted thousands of Heard Well dollars" for personal use, the suit alleges. The suit says Graham was not "the principal bad actor."
CAA is a leading Hollywood talent agency with a digital arm that represents influencers on YouTube, Instagram, and TikTok. The agency works with creators to monetize their followings through brand partnerships, consumer products, and other business ventures. CAA is not named as a defendant in the suit.
Wineberg, and to a lesser extent Graham, used the company's earnings as "a de facto personal piggy bank," the suit alleges.
Meanwhile, Franta, in the lawsuit, said Lindsay Wineberg & Associates โ Heard Well's business manager and accountant, led by Jeremy Wineberg's father โ acted negligently by turning the other cheek, "and in doing so negligently facilitated the draining of over $1 million of company monies into the personal pockets of Wineberg (and Graham)."
Bryan Sullivan, a lawyer for Jeremy Wineberg and Lindsay Wineberg & Associates, said the allegations aren't true.
"The lawsuit filed by Connor Franta is without merit," Sullivan told Business Insider in a statement. Sullivan said his clients never "engaged in any misconduct."
"We intend to pursue all of our rights and expect to be vindicated in Court," Sullivan said.
John Shenk, a lawyer for Graham, told BI in a statement that his client "denies the allegations of the complaint and looks forward to defending this case in court."
Graham told BI that he no longer represents Franta, nor does CAA.
Franta has been on YouTube for more than a decade and is also the author of the memoir "A Work in Progress." He cofounded Heard Well in 2015, with each of the cofounders contributing $2,000 to capitalize the startup, according to an operating agreement that was filed as part of the lawsuit.
Heard Well published dozens of albums, but Franta "hardly saw a dime of profit directed his way throughout the company's nearly 10-year lifespan," the suit says.
This spring, the suit says, Franta learned Heard Well had fallen behind on royalty payments after a YouTube video accused the company of scamming.
Heard Well's Instagram account was active as of Thursday, though Franta said in the suit that he's been blocked from the company's social media accounts.
"Acting with integrity and respect in all my professional endeavors โ especially with fellow creators โ has always been a top priority for me," Franta told BI in a statement.
He said that while the matter had only recently come to his attention, he'd taken action this week "to protect the company and to facilitate its pursuit of all necessary and appropriate legal remedies."
Alex Cooper announced a new product: an electrolyte drink called Unwell Hydration.
The "Call Her Daddy" star said the drink is low in sugar and contains B vitamins.
Cooper's move follows a trend of celebrities launching beverage brands.
Alex Cooper is getting into the beverage business.
The "Call Her Daddy" host announced on Wednesday that she'd be launching Unwell Hydration, an electrolyte beverage, early next year. The brand's website says it will be available on January 1.
"What could be my first consumer product? Probably something that would make the most sense would be that it could integrate into your unwell lifestyle," she said at Wednesday's DealBook Summit, a nod to her media network, Unwell.
She said the beverage would be marketed primarily to women, be low in sugar, and contain B vitamins. Its website says it will be "gently caffeinated" and come in strawberry, orange hibiscus, and mango citrus flavors.
The drink is a partnership with Nestlรฉ. Cooper did not specify the ownership structure of the endeavor.
"Every time I went to pick up an energy drink or any type of hydration drink, it's all catered to men," she told DealBook's Andrew Ross Sorkin.
Still, it's hardly the first celebrity beverage on the market.
Energy or hydration drinks backed by famous faces date back to at least the early 2000s when 50 Cent partnered with Vitamin Water in a deal that Forbes reported led to a $100 million payday. There have been several others since. For example, 50 Cent launched a follow-up beverage brand, Street King, which is now defunct; Dwayne Johnson created Zoa; and Kim Kardashian has Alani Kimade.
Perhaps the most successful of the bunch has been Prime Hydration from YouTubers Logan Paul and KSI. While the company has been facing legal battles in recent months, it surged in popularity after its launch in 2022. Bloomberg reported that sales were on track to exceed $1.2 billion for 2023.
Then there are the celebrity alcohol brands, some of which have turned out to be extremely lucrative. George Clooney pocketed more than $200 million when he sold Casamigos to Diageo in 2017, Sean Combs earned nearly $1 billion over his decade-plus-long partnerships on Cรฎroc and DeLeรณn, and Ryan Reynolds and his partners sold Aviation American Gin for $610 million.
Cooper could also soon jump on that trend. In November, Cooper's company filed a trademark application with the US Patent and Trademark Office for a product called "Popular Vodka by Unwell" consisting of alcoholic beverages (except beer), including distilled spirits, fruit spirits, liqueurs, liquors, vodka cocktails, and prepared cocktails consisting primarily of distilled spirits.
Cooper has been expanding her media business as well. Last year, she launched Unwell Network, which produces a slate of podcasts by influencers like Alix Earle, Harry Jowsey, and Madeline Argy. In August, Cooper signed a three-year deal with SiriusXM that was valued at up to $125 million.
But who has been able to break out on the platform this year? Spotify shared exclusively with Business Insider its list of the top 10 breakout podcasts of the year. The list includes shows such as "Talk Tuah" with Haliey Welch and "PlanBri Uncut" with Brianna "Chickenfry" LaPaglia and Grace O'Malley.
Spotify said the list was derived from factors including audience growth, who had the biggest cultural impact, and which shows created trending moments.
The most popular podcasts on Spotify overall this year were "The Joe Rogan Experience," which topped the Spotify charts for the fifth consecutive year, along with others such as "Call Her Daddy," "Huberman Lab," and "This Past Weekend w/ Theo Von."
Spotify has made a major push into video podcasting this year as it looks to compete with YouTube. An April survey conducted by Cumulus Media and Signal Hill Insights found that YouTube was the top platform for podcast streaming in the US, followed by Spotify.
Last month, Spotify announced a rebrand of its "Spotify for podcasters" program to "Spotify for creators," signaling a wider interest in creator talent. The company also announced new features, including a mobile-app experience for creator analytics and monetization.
Here are Spotify's top 10 breakout podcast creators of 2024:
"Black People Love Paramore" is a podcast hosted by Sequoia Holmes on the underrepresented interests of Black people.
"Pretend" is a documentary and true-crime podcast by the podcast production company Creative Babble about the history behind cult leaders and con artists.
"I'm Right You're Wrong"ย is a weekly podcast hosted by the comedian and influencer Isa Medina. In each episode, Medina invites a guest to discuss various ethical questions, such as whether it's right or wrong to be a Swiftie or to keep a situationship.
"Small Ball with Kenny Beecham" is a basketball analysis show hosted by Kenny Beecham and produced by Enjoy Basketball and Vox Media.
"PlanBri Uncut" is a Barstool Sports show hosted by the influencers Brianna "Chickenfry" LaPaglia and Grace O'Malley and sponsored by Pirate Water.
"Obsessed with Brooke Averick" is a weekly show hosted by the TikTok star and comedian Brooke Averick. It dives deep into her fandoms and obsessions, such as Broadway and "Criminal Minds," and is produced by TMG Studios.
"In Your Dreams with Owen Thiele" is an interview show themed like a sleepover and hosted by the comedian Owen Thiele. It's produced by Alex Cooper's media company, Unwell.
Correction: December 4, 2024 โ An earlier version of this story misspelled Haliey Welch's name.
A recent trademark application from the "Call Her Daddy" host's company โ TRNDG IP LLC โ suggests she's looking to launch a vodka venture.
Cooper filed a trademark application last month with the US Patent and Trademark Office for a product called "Popular Vodka by Unwell" consisting of alcoholic beverages (except beer), including distilled spirits, fruit spirits, liqueurs, liquors, vodka cocktails, and prepared cocktails consisting primarily of distilled spirits.
She also teased on Instagram a secret project, which she said would launch on Wednesday. She didn't immediately respond to a request for comment on whether the coming launch was related to a liquor brand.
Celebrity-backed alcohol brands have been a popular product trend for years, from Kendall Jenner's tequila brand, 818, to Ryan Reynolds' Aviation American Gin.
Cooper's business spans digital and traditional media, including Unwell Network, which produces a slate of podcasts by influencers like Alix Earle, Harry Jowsey, and Madeline Argy.
In August, Cooper signed a three-year deal with SiriusXM that was valued at up to $125 million, multiple outlets previously reported.
One of TikTok's creator managers, Norissa Samuels, recently shared 10 best practices for posting on TikTok in a keynote presentation at an invite-only creator summit in Los Angeles.
The conference's presentations left out any mention of theย divest-or-ban bill,ย which could see TikTok removed from US app stores as early as January 19.
Instead, the speakers, including Samuels, zeroed in on one phrase: "high-quality content."
They defined it as content that drives growth and showcases an in-depth understanding and expertise. At the event, the company said that this type of content performs better onย TikTok's horizontal video tool for longer videos. TikTok also said that, in general, "high-quality content" is a key to getting more views and making more money from the platform.
Samuels shared in a presentation 10 tips for creating better content and mastering storytelling:
Have a clear beginning, middle, and end.
Like an elevator pitch, keep an audience engaged throughout the video.
Engage, then explain. Grab the viewer's attention in the first five seconds with a strong hook.
How to craft a strong hook: Answer a question, tease the end result, or create a funny moment.
Move locations, use trendy sounds or music, voice-over, or lean into effects and text.
Go in-depth and make people learn or feel something new.
Solve a problem, bust a myth, share a hack, elevate the everyday, share an inventive idea, or teach step-by-step.
Prioritize production value with high-quality visuals, edit with quick cuts and captivating shots, and use transitions and fast-paced storytelling.
Think like a director: Prep costumes, lighting, sound, and framing beforehand.
Be intentional with your aesthetic. Stick to one that will reflect your brand.
TikTok hosted a Los Angeles creator summit focused on long-form content and monetization.
The event emphasized high-quality content but notably left out the looming US ban.
TikTok execs shared tips for storytelling and content creation.
In a packed Hollywood auditorium last week, TikTok gave its pitch to creators โย and didn't address the fact that it could soon be kicked out of the country.
The company's creator summit in Los Angeles focused on horizontal long-form video, platform monetization, and the power of fandoms. Notably left out of the half-day conference was any mention from keynote speakers about the divest-or-ban bill that could see TikTok removed from US app stores as early as January 19.
"I'm definitely leaving that to our phenomenal legal team," Kim Farrell, TikTok's global head of creators, told Business Insider when asked directly about the ban. "But I think if you look at an event like today, there's so much momentum, there's so much positivity. We just really want to send a message to creators that we are here for them and full steam ahead."
TikTok regularly hosts invite-only events around the globe for its creators. This latest event highlighted the company's aim to compete further with YouTube in long-form content, and executives like Farrell and Melissa Tecson, the head of established creator management in North America, as well as creator manager Norissa Samuels, shared best practices.
The buzzword of the day was "high-quality content." In TikTok's view, this means well-crafted, engaging content that drives growth and showcases an in-depth understanding and expertise on a specific topic or theme.
Tecson said that, in TikTok's research, creators who made "high-quality" content earned 15 times as much per month, on average, as other creators did directly from the platform.
She also talked up subscriber communities, which let creators build paywalled feeds that viewers can access for a monthly price. Tecson said TikTok recommends having a subscriber community as a way creators can build predictable monthly revenue.
Some creators, especially micro and nano influencers, have struggled to build predictable revenue streams with recent market shifts. A survey from the influencer-marketing firm Linqia found a drop in marketers looking to hire creators with fewer than 500,000 fans and a shift toward mega influencers with millions of fans.
Tips TikTok shared with creators
In a keynote presentation, Samuels said TikTok was looking for creators who could master storytelling.
Samuels shared 10 tips for creating better content on TikTok, which could lead to stronger engagement and higher earnings:
Have a clear beginning, middle, and end.
Like an elevator pitch, keep an audience engaged throughout the video.
Engage, then explain. Grab the viewer's attention in the first five seconds with a strong hook.
How to craft a strong hook: Answer a question, tease the end result, or create a funny moment.
Move locations, use trendy sounds or music, voice-over, or lean into effects and text.
Go in-depth and make people learn or feel something new.
Solve a problem, bust a myth, share a hack, elevate the everyday, share an inventive idea, or teach step-by-step.
Prioritize production value with high-quality visuals, edit with quick cuts and captivating shots, and use transitions and fast-paced storytelling.
Think like a director: Prep costumes, lighting, sound, and framing beforehand.
Be intentional with your aesthetic. Stick to one that will reflect your brand.
Higher-quality content also performs better on TikTok's horizontal video tool, TikTok said at the event.
TikTok launched longer-form videos in 2022, and between November 2023 and April 2024, the watch time of content over one minute was five times that of short videos, the company said.
There's a new experiential store in Los Angeles that blends livestreaming with in-person retail.
The space features rows of hosts selling products live on TikTok Shop.
The project is the brainchild of Outlandish, an e-commerce startup with roots in China.
Welcome to the TikTok-era shopping mall.
A new brick-and-mortar store from the e-commerce startup Outlandishis bringing to life the world of TikTok Shop. It sits on a busy street in Santa Monica's 3rd Street Promenade, wedged between a Sephora and a Chipotle.
Business Insider stepped inside the two-story emporium ahead of its Thursday opening. It features a first floor of branded stalls where a lineup of hosts sit in front of bright lights and product displays as they hawk their wares to a TikTok audience. On its second floor, visitors can shop for goods from those sellers, which include brands like Goli Nutrition and the electronics company Anker.
The aim of the store is to mix live online selling with in-person retail. Passersby can buy viral products, gawk at influencers or merchants as they sell on livestreams, or even join the QVC-style streams themselves. Products and sellers will rotate, as merchants can rent out space by the hour.
The store's Santa Monica location is in a tourist hot spot. Like TikTok livestreams themselves โ which are sometimes interspersed into the app's main feed โ it's likely to draw in visitors who didn't originally plan to watch livestream shopping.
On Monday, the yet-to-open space was already packed with live sellers chattering away. It was loud โ there were a handful sellers simultaneously recording in one room โ but it was still easy to become engrossed in watching a single host.
It's As Seen on TV, but for the TikTok generation, William August, Outlandish's founder and CEO, told BI.
"This is 'As Seen on Livestream,'" August said. "I want people that come in to not feel like they're in a studio, but to feel like they're in a space where they can pop in the livestream. They can enjoy the experience. They can grab some free samples, and they can buy in-person. That's why our livestream rooms are not blocked off."
Outlandish's live-shopping concept taps into a broader effort among e-commerce startups, like SuperOrdinary, to make the live-selling model that exploded in China and other parts of Asia take off in the US. It's a big focus among TikTok Shop merchants who use the e-commerce platform to sell goods in videos, livestreams, and a dedicated shopping tab. TikTok itself is heavily focused on making livestream shopping successful in the US. The company recently hosted a summit for partners where it emphasized live selling.
TikTok and its owner ByteDance are aiming to recreate the success of its Chinese sister app, Douyin, which drives hundreds of billions in annual product sales. Features that are successful on Douyin often get pushed to TikTok next.
In addition to TikTok Shop, Outlandish has experience working with brands to help them sell on Douyin and other social apps.
How live selling could break through in the US
TikTok Shop is still a relatively young e-commerce platform, having launched in the US a little over a year ago. But it's gaining traction quickly as users become more acclimated to buying from a social app. Content creators on the app are now driving millions in sales in single live-selling sessions, which TikTok recommends should last a minimum of two hours.
In July, TikTok Shop's US gross sales began topping $1 billion monthly, The Information reported. Outlandish said it helped its partners earn $1.2 million in sales across 1,300 livestreams in a recent four-week window, adding up to nearly 3,000 hours of live streaming.
Live-selling studios are popping up in major cities like Los Angeles and New York. TikTok has some at its offices that it makes available to partners. Outlandish aims to expand beyond Santa Monica into additional locations in Mexico and Spain in 2025.
Outlandish isn't the only company trying to merge digital shopping with brick-and-mortar. Mall of America kicked off a livestream partnership with the e-commerce platform Popshop Live in 2020, for instance. Other TikTok Shop sellers have experimented with adding livestreaming spaces to their storefronts, such as the New York-based pre-owned luxury store What Goes Around Comes Around. And companies like Amazon have envisioned repurposing mall stores to service other e-commerce functions, such as fulfillment.
"This is a whole new industry that's just getting built in the US," August said. "Very soon, it will be a massive job market as well, with a lot of people that will come into the industry, and it'll be their job to be a live host or to be a live operator or to be a live moderator."
Outlandish, which began in 2018 as a social shopping agency in China, is an official TikTok Shop partner. Many of the sellers in its Santa Monica space work with the company on other parts of their TikTok Shop strategies, such as influencer affiliate marketing. But the company also hopes to draw in local Santa Monica businesses and influencers, too.
Outlandish makes money from the space by charging management fees for its live-shopping segments. It can get a percentage cut of online sales as well. The company declined to provide information on the cost or length of its Santa Monica lease.
Its US Shop business could get upended if TikTok ends up being pulled from app stores in January, as mandated by a divest-or-ban bill passed by Congress. If that does happen, August said Outlandish's Santa Monica sellers could pivot to livestreaming on other platforms.
"If TikTok does get banned, I don't think these people are just going to stop shopping through livestreams," he said.