ByteDance’s TikTok is set to discontinue its music streaming service on November 28, just two years after the company launched efforts to compete with industry giants like Spotify and Apple Music. The decision marks a strategic shift for TikTok, which now aims to bolster its role in driving music discovery and consumption on other streaming platforms rather than competing directly with them.
Ole Obermann, TikTok’s global head of music business development, stated that the closure is intended to focus on “furthering TikTok’s role in driving even greater music listening and value on music streaming services, for the benefit of artists, songwriters and the industry.” The company is encouraging users to utilize its “Add to Music App” feature, which allows them to save songs discovered on TikTok to their preferred music streaming services.
TikTok Music, which evolved from the earlier Resso platform, was introduced in July 2023 after ByteDance secured licensing agreements with major record labels such as Sony Music Entertainment, Warner Music Group, and Universal Music Group. The service initially launched in Indonesia and Brazil before expanding to markets including Australia, Mexico, and Singapore.
However, TikTok’s relationships with music labels have been strained recently due to concerns over artist compensation and artificial intelligence protections. Earlier this year, the platform faced a prolonged dispute with Universal Music Group, resulting in the temporary removal of songs by popular artists like Taylor Swift, Drake, and Justin Bieber from TikTok. The conflict was resolved in May with an updated agreement addressing some of the industry’s concerns.
The announcement of TikTok Music’s closure comes as the company faces political challenges in the United States. President Biden recently signed legislation that could lead to a ban on TikTok in the US unless ByteDance divests its ownership stake. TikTok has filed a lawsuit to contest the new law and presented its case before a federal appeals court last week. If legal efforts fail, the ban could take effect as early as January 2025.
In response to the news, Spotify’s stock saw a modest increase of over 1% in early trading, reflecting potential benefits for established streaming services as TikTok exits the market.
TikTok is advising users to transfer their playlists to other services by October 28, a month before the platform’s closure. This move underscores the company’s shift towards collaboration with existing streaming services rather than direct competition.
The short-lived TikTok Music venture highlights the challenges of entering the highly competitive music streaming market, even for a platform with TikTok’s massive user base and cultural influence. By refocusing on its strengths in music discovery and promotion, TikTok aims to maintain its significant impact on the music industry without the complexities of operating its own streaming service.
As ByteDance navigates regulatory hurdles and recalibrates its music strategy, the broader implications for the digital music landscape remain to be seen. The closure of TikTok Music may provide
opportunities for established streaming services to strengthen their positions, while potentially opening new avenues for collaboration between social media platforms and music streaming providers.
The decision also reflects the ongoing evolution of the music industry in the digital age, where the lines between social media, content creation, and music consumption continue to blur. As TikTok refines its role in the music ecosystem, it may set new precedents for how social platforms can contribute to music discovery and artist promotion without directly entering the streaming market.