TikTok has taken the smartphone video platform by a storm. ByteDance, the Chinese company that owns TikTok is mulling starting a new music streaming service that will rival the likes of Spotify and Apple music. A report by Financial Times says that Bytedance’s music streaming service is all set to launch next month.
TikTok is very popular in emerging markets like India and China. As expected, the company will debut its music streaming service in India, Brazil, Indonesia. The TikTok owned music streaming service is expected to undercut the rivals when it comes to subscription prices. In other words, it will be priced much lower than its rivals. It is worth noting that ByteDance can leverage its already popular TikTok to rake in subscribers for the music streaming service.
The report claims that ByteDance is in talks with music labels like Universal Music, Sony Music, and Warner Music. Furthermore, the company is expected to add a layer of social features that will prompt users to share songs and playlists. Users will also be able to skim through a vast vertical video library and sync it to their songs.
Bytedance is certainly dipping its toes in new markets. Recently, the Chinese company announced a smartphone. The company has been recruiting a lot and earlier this year had also announced that it is building a search engine and a new video-based social messaging service.
ByteDance certainly has the userbase to cross-promote its products. In all likelihood, the social sharing features will pull the users while automatically promoting the app. TikTok has managed to amass more than 1.5 billion downloads across the App Store and Google Play. The company is valued at $78 billion and is said to have 1 billion monthly active users.
ByteDance’s music streaming service might pick pace in emerging markets but it will be very difficult to lure users from Apple Music or Spotify in other markets like the U.S.