ByteDance, the Chinese owner of the popular short video sharing app TikTok, is set to become a major competitor in the lucrative music streaming business. The Chinese firm is reportedly in talks with major music labels for its upcoming feature that will directly be competing with global leaders in the space such as Apple Music and Spotify.
According to reports citing sources close to the matter, ByteDance is now in negotiations with global music labels to undercut existing music streaming services. Some of the companies that the company has approached reportedly include Universal Music, Warner Music, and Sony Music.
ByteDance is reportedly trying to close global licensing deals with the aforementioned companies to use their music for its subscription service. The same sources claim that the company is aiming to market its new service to its billions of global users.
Reports claim that ByteDance could launch its new services as soon as next month. The company is likely to first launch the service in emerging markets, which could include countries such as India, Brazil, the Philippines, and Indonesia. If the service proves to be successful, the company ultimate goal will be to target the United States, essentially pitting its service against established brands such as Spotify and Apple Music.
Unlike other music streaming startups, ByteDance should be able to leverage its existing user base to market its new service. The company currently has more than a billion users worldwide, with its TikTok app having been downloaded more than 80 million times in the US alone. ByteDance could essentially market its new service to its large user-base, skipping the need for heavy and expensive marketing.
Some reports have speculated that ByteDance could be including its new service on its existing social media platform. According to music executives who had been given a demo of the company's proposed service, existing TikTok users could access on-demand music right on the app. This would allow them to search through thousands of titles, which they can then sing-along or listen to right inside the app. Users could also send clips with their chosen background music to their friends and family.
There is currently still no indication on the possible pricing of the on-demand music option, but some reports have speculated that it could be priced similarly to other music streaming services. Apple and Spotify both charge around $9.99 per month for their respective services. ByteDance on the other hand could initially charge less than that to attract more users.
