TikTok is preparing the arrival of its own music streaming platform in the world. By attacking Spotify and Apple Music, the Chinese application seeks to increase its advertising revenue while diversifying.
ByteDance, parent company of TikTok, aims to deploy Resource, its music streaming application, worldwide, report our colleagues from the Wall Street Journal. Currently, Resso is only available in Brazil, India and Indonesia, and is relatively successful.
As a reminder, ByteDance’s expansion project has already been talked about in recent months. Indeed, the Chinese firm filed a trademark application with the United States Patent and Trademark Office in May 2022. The filing describes a service called TikTok Music. Mirroring behemoths like Apple Music or Spotify, TikTok Music would allow you to listen to songs in streaming by paying a monthly subscription.
Nevertheless, it seems that the arrival of the music streaming service in the USA is not yet on the agenda. Before reaching out to Americans, the platform would first roll out in a dozen different markets. For the time being, it is not known whether European countries are part of ByteDance’s priorities. Ultimately, the Chinese group in any case wants the service to be offered worldwide.
Citing people familiar with the ongoing discussions, the Wall Street Journal says that ByteDance is in talks with music labels. There would still be significant hurdles between the parties. ByteDance and the labels are said to be at odds over TikTok’s promotional benefits and the amounts collected for the rights. De facto, the launch of Tiktok Music should not take place anytime soon.
As part of the service’s expansion around the world, Resso, rebranded as TikTok Music, would be directly integrated into the TikTok app. ByteDance’s goal is for people to discover songs by browsing videos. Then they will be prompted to subscribe so they can listen to the music again later. In this way, the service could seek to seduce the 970 million users of the social network.
An obvious shift towards music
Note that the rise of TikTok has already done explode the popularity of certain songs. For example, the favorite application of 18-25 year olds contributed to the success ofOld Town Road by American rapper Lil Nas X. Became a meme on TikTok, the title obtained the first place of the Billboard Hot 100, the great ranking of the best-selling singles in the United States.
It only takes a series of popular TikTok accounts covering a music track for a trend to emerge. The song is then included in the videos of many users, which boosts the popularity of the music. Very often, Internet users then try to find the music on a streaming platform, such as Spotify. By deploying its own platform, ByteDance would manage to keep its users within TikTok.
TikTok has even revealed French artists, including budding musicians, like the young Carla Lazzari. For some, the social network has served as a real launch pad to a music career. No doubt TikTok Music could also take advantage of these talents to attract subscribers. For their part, artists revealed by Tiktok videos would thus have access to a new source of income.
Boosting TikTok ad revenue
With its own streaming platform, TikTok would also seek to increase advertising revenue. Currently, the business model of the Chinese application is mainly based on advertising. TikTok’s advertising revenue for the current year should also exceed that of Twitter and Snapchat combined, estimates eMarketer. The colossal success of the app with advertisers would even overshadow Meta, one of the giants of digital advertising.
If TikTok Music models itself on Resso, the platform would rely on a freemium model similar to Spotify. It will be possible to listen to songs for free, but these will be regularly interrupted by advertisements. ByteDance will therefore be able to earn more advertising revenue. At the same time, paid subscriptions will diversify the group’s sources of income.
wall street journal
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TikTok set to declare war on Spotify and Apple Music
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