TikTok Music challenges Spotify and Apple Music in key markets

TikTok, the popular short video app, has launched a new music-streaming service in several countries, as it seeks to challenge the dominance of Spotify and Apple Music.

TikTok Music said on Wednesday that it will be testing its service in Australia, Mexico and Singapore. That announcement comes shortly after it launched in Indonesia and Brazil earlier this month.

The new service allows users to stream music from TikTok’s vast library of songs, as well as create playlists, discover new artists and share tracks with friends. Users can also access exclusive content from TikTok creators and influencers.

TikTok Music is leveraging the app’s massive user base and viral potential, as it aims to attract music fans and artists. According to DataReportal, Indonesia and Brazil are TikTok’s second- and third-largest markets, behind only the U.S., with 113 million and 84.1 million active TikTok users aged 18 years and above, respectively. Meanwhile, Mexico is TikTok’s fourth-largest market with 62.4 million TikTok users.

Last week, TikTok also announced an expanded licensing agreement with Warner Music Group, as it looks to grow its music content library. Parent company ByteDance also recently scrapped the free tier of Resso, another music-streaming service it owns.

Analysts said TikTok has key advantages that other music-streaming entrants do not possess and that could help it seize market share.

“TikTok has a strong brand recognition and a loyal user base that is already familiar with its music offerings. It also has a unique ability to create viral hits and trends through its short videos, which can drive demand for its music-streaming service,” said Mark Mulligan, managing director of MIDiA Research.

“TikTok Music could also appeal to emerging artists who want to reach a global audience and monetize their music. It could offer them more exposure and revenue opportunities than other platforms,” he added.

However, Mulligan also noted that TikTok Music faces some challenges, such as competing with established players who have more resources and experience in the music industry. He also said that TikTok Music will have to differentiate itself from other music-streaming services and offer more value to users.

“TikTok Music will have to prove that it can offer more than just a playlist of TikTok songs. It will have to provide a compelling user experience, a diverse and curated music catalogue, and a competitive pricing strategy,” he said.

According to its website, TikTok Music offers two subscription plans: a standard plan for $3.99 per month and a premium plan for $5.99 per month. The standard plan allows users to stream music in standard quality, while the premium plan offers higher quality streaming, offline listening and ad-free experience.

TikTok Music did not disclose how many users it has or how many it expects to sign up for its service. It said that it will continue to test and improve its service based on user feedback. It also said that it plans to expand its service to more countries in the future.

Leave a Reply

Your email address will not be published. Required fields are marked *