Breaking News: ByteDance to Shut Down TikTok Music Globally in November 2024
In a surprising move, ByteDance has announced the closure of its music streaming service, TikTok Music, worldwide on November 28, 2024. This decision comes as a shock to many, as TikTok Music was seen as a competitor to the likes of Spotify and Apple Music in countries such as Indonesia, Brazil, Australia, Singapore, and Mexico.
TikTok Music, which was originally based on ByteDance's product Resso, first launched in India and Indonesia in 2019 before expanding to Brazil. In 2023, ByteDance transitioned Resso users in Brazil and Indonesia to TikTok Music users, leading to its expansion to other countries. However, the service faced challenges, as Resso was banned in India earlier this year.
TikTok has been a popular platform for music discovery, with the potential to make artists and songs viral in a short amount of time. A study conducted by TikTok and Lumiate highlighted the platform's impact on increasing artists' value through streaming and music discovery.
Despite ByteDance's efforts to leverage TikTok's popularity to drive streams within its ecosystem, the experiment did not yield the desired results. Furthermore, TikTok has faced issues with the music industry, leading to disagreements over royalties with Universal Music Group earlier this year.
In addition, TikTok is currently embroiled in a legal battle that could potentially result in the app being banned in the U.S. This has hindered ByteDance's plans to expand TikTok Music to markets like the U.S., which represents a significant portion of the global music streaming market.
In conclusion, ByteDance's decision to shut down TikTok Music globally raises questions about the future of music streaming services and the relationship between tech companies and the music industry. Investors and consumers alike should keep a close eye on these developments, as they could have a significant impact on the music industry and financial markets.