TikTok takes on Apple Music, Spotify with music streaming

Recently, TikTok launched a new music streaming service to rival Spotify and Apple Music as the popular short video app looks for new growth avenues.

On Wednesday, TikTok Music said it would be testing the music streaming service in Mexico, Australia, and Singapore. That announcement arrives shortly after it launched in Indonesia and Brazil earlier this month.

A larger licensing agreement with Warner Music Group was also announced by TikTok last week as the company aims to expand its library of musical works. The parent company, ByteDance, stopped providing a free tier for Resso, its other music-streaming service.

While the music-streaming service is still in its infancy, analysts said TikTok has key advantages that other new music-streaming services do not possess and that could help it seize market share.

Jonathan Woo, senior research analyst at Philip Securities Research, said that the already large installed base of users on TikTok could be converted into paying TikTok Music subscribers at a relatively low customer acquisition cost.

Ole Obermann, head of music business development for TikTok globally, told journalists during the launch of TikTok Music in Indonesia and Brazil that the service would make it simpler for users to download, share, and save their favorite viral tracks from TikTok.

According to MIDiA Research’s data, for 16–19-year olds, TikTok is the second-most common source of music discovery. UK-based MIDiA Research is a research firm covering media and entertainment.