TikTok Music‘s recent expansion, with the retirement of its Resso brand in Indonesia and Brazil, signals a bold move into the global music streaming arena. This development, while gradual, demands serious attention. The company’s rapid growth and potential brand power cannot be underestimated. While it faces formidable competitors like Spotify and Apple Music, the beta testing in its largest markets suggests that TikTok Music’s entry into the U.S. market could be imminent. Notably, the streaming service filed a patent for “TikTok Music” in the U.S. last year.
A New Era of Music Streaming
TikTok Music is a subscription-based service, accessible only to TikTok users. As the service continues to outpace major social media apps in the U.S., it presents a unique offering to younger generations. For those seeking a more socially integrated music streaming experience, TikTok could become the go-to platform. Its reputation as a music discovery tool aligns with its expansion into full-track streaming, potentially reshaping how users consume music.
While TikTok Music poses a serious threat to established streaming giants, it also opens doors for record labels like Warner Music Group, Universal Music Group, and Sony. Licensing partnerships could unlock new revenue streams for artists. However, the platform’s emergence adds uncertainty to industry relationships, emphasizing the need for fair dealmaking.
In a rapidly evolving music streaming landscape, TikTok’s influence extends beyond its platform. The growth of short-form video, connected fitness, gaming, and podcasts within music presents significant revenue potential. With music revenue from social media platforms already surging, the industry is at a crossroads. In conclusion, the competition intensifies as TikTok Music inches closer to becoming a global player, urging major platforms to prepare for the impending challenge or risk losing market share.
[H/T] – Variety
