As ByteDance broadens the global reach of TikTok Music, the move is beginning to signal a potential shake-up in the music streaming industry. ByteDance recently replaced its Resso brand with the low-cost add-on in Indonesia and Brazil, following its launch in Mexico, Australia, and Singapore in July.
TikTok Music is subscription-based and requires a TikTok account for access. While the service has yet to confirm a US launch, its current beta testing in major markets and a filed patent for “TikTok Music” with the US Patent and Trademark Office indicate that a market entry could come at any time.
TikTok’s remarkable growth trajectory saw it surpass Instagram in daily minutes consumed by US adults in 2022. As analyzed by Variety, the platform is predicted to outperform Facebook by 2025. TikTok Music’s entrance into the streaming arena could be a boon for record labels such as Warner Music Group, Universal Music Group, and Sony. Additional licensing partnerships could create new revenue streams for artists, although negotiations between the platform and record labels will be crucial as the service continues its global expansion.
The music industry’s revenue from social media platforms grew by 30.9% in 2022, with around 60% coming from short-form video and social media platforms like TikTok, according to IFPI. As ByteDance’s streamer gains traction, existing services like Spotify and Apple Music will need to strategize effectively to maintain their market share.
