Bytedance, the parent organization of viral video application TikTok, is getting ready to release its own music streaming service which will compete with Spotify and Apple Music. ByteDance has even secured the requisite music rights from Indian record labels - T-Series and Times Music - according to Bloomberg. This means the pricing strategy would need to be on the lower end, in relation to something like Spotify, in order to attract sufficient numbers of users.
While the new app isn't named after TikTok, ByteDance will try to convert some of TikTok's audience into paying customers, the people said. Should ByteDance go ahead with the new service, this will represent another stage in the company's growth.More news: Turkey preparing for possible US sanctions over S-400s -minister
The announcement comes as rumours have mounted around a ByteDance music platform that will challenge the likes of Spotify and Apple.
All thanks to the massive popularity of TikTok, ByteDance has been able to been able to acquire large users base in a very short period of time. TikTok and its Chinese version, Douyin, are some of the most popular App Store apps with more than 500 million downloads. Another reason why it is looking at music specifically is that TikTok already has a huge influence on the music industry - the current number 1 song worldwide, Old Road Town, first became popular in videos shared on TikTok.More news: Sony will focus its smartphone business on four markets only
"In China, ByteDance claims to have tie-ups with more than 800 labels", the report added.
TikTok extended ByteDance's reach around the world, a rare feat for a Chinese technology company. Their catalogs account for a minority of listening in most emerging markets, but would be vital if ByteDance wanted to expand anywhere in Europe, Latin America or North America. It also presents an opportunity to squeeze ByteDance for extra money.More news: LeBron James: Lakers star already recruiting Kawhi Leonard and Jimmy Butler
While the rights have been secured, the name of the music service is not yet known.
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