TikTok parent ByteDance Ltd reportedly wants to boost its music-streaming business and up the ante against industry heavyweights such as Spotify Technology S.A. SPOT.
What Happened: ByteDance has started approaching music labels for its Resso streaming service’s global expansion plans and intends to eventually integrate it with TikTok, Wall Street Journal reported, citing people familiar with the discussions.
The plan reportedly is to make the service a top-tier platform for distributing music worldwide.
TikTok and ByteDance did not immediately respond to Benzinga's request for comment.
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ByteDance is currently negotiating with a music business that has witnessed a definite surge for several years, even as the talks have run into multiple disagreements over the valuation of TikTok's promotional benefits for the labels, the Journal noted.
In the past, several viral TikTok videos have helped songs gain traction coupled with free publicity.
Why It's Important: ByteDance's plans can be seen as a way to keep its extensive user base within its ecosystem. One of the significant challenges of the music streaming business is how much labels are paid, as per the Journal. Spotify has expanded into podcasts and audiobooks to enhance margins.
Apple Inc's AAPL Music streaming service and Alphabet Inc. GOOG GOOGL-owned YouTube also have considerable businesses that vie for users' attention.
Read Next: Spotify Analyst Finds Risk-Reward Compelling, But Sees Audiobooks Immaterial Into Year-End And 2023
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