Chapter 1: TikTok's Bold Move into Music Streaming

Exciting news: TikTok may soon be launching a music streaming service. While users of Instagram, YouTube, and Facebook fret over their platforms mimicking TikTok's style, many are unaware that this could merely be the start of TikTok's expansion into new territories. Recent filings imply that significant changes could be on the way.

On May 9, 2022, ByteDance, TikTok's parent company, submitted a trademark application for "TikTok Music." This new offering aims to let users buy, play, share, and download songs, albums, and lyrics.

How TikTok is Influencing the Music Scene

It's no surprise that TikTok has emerged as a crucial promotional platform for musicians and record labels. Viral dances and memes often propel songs to the Billboard charts, as users search for and stream the full tracks. Remarkably, even older songs have gained new life thanks to TikTok influencers lip-syncing them, rekindling interest after years of being off the mainstream radar.

Music labels are now urging their artists to create these viral moments to ensure their latest tracks achieve success. Additionally, TikTok's recent collaboration with Ticketmaster enhances artists' engagement with fans, allowing users to discover events and buy tickets right from the app.

A Glimpse into TikTok's Streaming Service

What might a TikTok music streaming service look like? It's likely to resemble Resso, a service already tested in India, Brazil, and Indonesia. Launched in 2020, Resso is marketed as a unique social music streaming app. Unlike typical streaming platforms that promote passive listening, Resso encourages user interaction with the music.

The app includes features outlined in the trademark application, such as playlists, song sharing, and community engagement. Currently, Resso is limited to three countries, strategically targeting regions where paid music subscriptions are still developing. ByteDance has already established licensing agreements with major music labels, including Warner Music Group and Sony Music Entertainment.

The Challenge for Spotify and Apple Music

TikTok has already disrupted the social media landscape, prompting platforms like YouTube and Instagram to adopt similar short-form content strategies. As ByteDance prepares to enter the music streaming arena, it raises questions about the impact on major competitors like Spotify and Apple Music.

Resso has shown remarkable growth, with a reported 304% increase in monthly active users in India between January 2021 and January 2022, contrasting sharply with Spotify's 38% growth during the same period. While Spotify remains the leading music streaming service, it faces challenges in retaining the attention of Gen Z, who favor interactive, social experiences over passive listening.

Spotify's Efforts to Engage Users

In response to these challenges, Spotify has been incorporating interactive features to maintain its younger audience. The introduction of the blend tool allows users to share playlists with friends and see how their musical tastes align. Recently, Spotify also acquired Heardle, a music guessing game inspired by Wordle.

Although insiders indicate that the new music platform won't carry the TikTok brand, ByteDance aims to convert users into paying subscribers for its streaming service.

Question: Do you believe Spotify or Apple Music should be concerned about TikTok's entrance into music streaming? Share your thoughts in the comments!