ByteDance, the Chinese tech giant behind TikTok,will be shutting down its music streaming service, TikTok Music, globally in November. Thecompany confirmed the news in an official announcement, stating that the service will cease operations on November 28, 2024.
TikTok Music, a competitor to Spotify and Apple Music, launched in 2023 and was available in Indonesia, Brazil, Australia, Singapore, and Mexico. Theservice was built upon ByteDance’s existing music streaming platform, Resso, which was first launched in India and Indonesia in 2019 and later expanded to Brazil.
In 2023, ByteDance transitionedResso users in Brazil and Indonesia to TikTok Music. Shortly after, the service expanded to Singapore, Australia, and Mexico. However, earlier this year, the Indian government banned Resso, effectively halting its operations in the country.
While TikTok has becomea popular platform for music discovery, it has also been a significant driver of music virality, propelling artists and songs to mainstream success. A study by TikTok and entertainment data research company Lumiate found that TikTok has a significant impact on increasing artist value and promoting music discovery through streaming.
ByteDance also operates a music distributionplatform called SoundOn, which aimed to leverage TikTok’s popularity to drive streaming within its own ecosystem. However, this attempt appears to have been unsuccessful.
Recently, TikTok has faced challenges in its relationship with the music industry. Earlier this year, Universal Music Group (UMG) removed its music catalog from the servicedue to disagreements over royalties. In response, TikTok accused UMG of false statements. The two parties eventually reached a new agreement in March.
Furthermore, TikTok is currently embroiled in a legal battle over a potential ban of the short-video app, which could hinder ByteDance’s plans to expand TikTok Music tomarkets like the United States, a market worth approximately $12 billion in revenue according to Statista.
The reasons behind the decision to shut down TikTok Music remain unclear. ByteDance has not commented on the matter. However, the move comes amidst a challenging environment for the company, marked by regulatory scrutiny, legal battles, andstrained relationships with major music labels.
The closure of TikTok Music highlights the competitive landscape of the music streaming industry, where established players like Spotify and Apple Music continue to dominate. It also raises questions about ByteDance’s future strategy in the music space, particularly as the company seeks to expand its global presence and navigatecomplex regulatory landscapes.
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