TikTok Live generated $1.7 billion globally in sales in a single quarter of 2023, Bloomberg reports. According to the report, more than $400 million of the sales came from the U.S.

The data was disclosed in a lawsuit against the company. The complaint, filed by District of Columbia Attorney General Brian Schwalb, raises serious questions about how TikTok Live operates and the risks it poses, particularly for young users.

However, these figures offer a rare look into TikTok's financial performance, as the company typically keeps such data private. 

Allegations of exploitation on TikTok Live

According to the report, the lawsuit, originally filed in October 2023, aims at TikTok’s Live feature. It alleges that the platform enabled financial and sexual exploitation of minors. The complaint cites a 2022 Forbes investigation, which reported that adult men were using TikTok’s virtual gifting system to coerce minors into inappropriate acts. The lawsuit goes as far as to describe TikTok Live as “operating in part like a virtual strip club.”

The District of Columbia’s complaint also claims that TikTok broke consumer protection and money transmission laws by making false claims about its safety measures. Multiple states, including Utah, Vermont, New Hampshire, and Kentucky, have filed separate lawsuits against TikTok over alleged harms to children, with several focusing specifically on TikTok Live.

Adding to the concerns, the complaint cites internal TikTok data showing that teenagers aged 13 to 17 in Washington spent over two hours daily on the app, often between 3 AM and 5 AM.

Projected growth amid controversy

Despite these allegations, TikTok projects that its livestreaming feature will generate $77 billion globally by 2027, a substantial increase from current figures. This projection shows the platform's efforts on livestreaming as a significant revenue stream, particularly with the integration of TikTok Shop. 

Since the launch of TikTok Shop in late 2023, sellers and creators have increasingly turned to livestreaming to sell products in real-time. Reports showed that in the U.S. over 30,000 livestream sessions were hosted on Black Friday alone. 

The combination of social entertainment and shopping has made TikTok Live a powerful revenue driver, and it has become a significant revenue stream for the platform. This feature allows users to broadcast in real-time, enabling direct interaction with audiences. Viewers can purchase virtual gifts during these live sessions, which streamers can convert into cash, with TikTok taking a percentage.

TikTok’s uncertain future in the U.S.

All of this comes when TikTok is facing pressure in the U.S. over national security concerns. A new law that took effect in January 2025 could lead to a nationwide ban on TikTok, unless its China-based parent company, ByteDance, sells its U.S. operations to a non-Chinese company.

However, U.S. President Donald Trump has delayed enforcement of the law until early April, giving ByteDance time to negotiate a sale. 

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