What Happened: The move comes after TikTok’s expanded licensing agreement with Warner Music Group and the removal of the free tier of Resso, another music-streaming service owned by parent company ByteDance.

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TikTok Music has begun testing its service in Australia, Mexico, and Singapore, following its recent launch in Indonesia and Brazil.

Why It Matters: Analysts believe TikTok’s large user base could be converted into paying TikTok Music subscribers at a relatively low customer acquisition cost.

“If you’re already in the ecosystem, and you’re using TikTok that much, you might be willing to switch over,” said Tatiana Cirisano, music analyst at MiDIA Research. However, many added that TikTok Music presents a “low risk” for Spotify and Apple Music due to strong brand loyalty among their users.

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Image via Pemika Chedpiroon on Shutterstock