Sep 25, 2024 11:35 PM
BUSINESS
TikTok Music Comes to the End of the Track in Strategy Shift
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With more than 1 billion monthly active users globally, TikTok has become a platform to promote artists and develop hit songs
TikTok is to terminate its one-year-old music-streaming platform, TikTok Music, pulling out of the competition with online music giants such as Spotify Technology SA and Apple Music.
TikTok Music services will end on Nov. 28 and customer data will be deleted, the company said Tuesday. Users have until the end of October to transfer
playlists to another service. They can request refunds until Nov. 28.
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- TikTok is ending its TikTok Music service on Nov. 28, urging users to transfer playlists by the end of October.
- The shutdown focuses efforts on the "Add to Music app" feature, integrating TikTok with platforms like Spotify, Apple Music, and Amazon.
- Spotify's shares hit a record high following the announcement, reflecting its leading market position with 626 million monthly active users.
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Who’s Who
- TikTok
- TikTok is terminating its TikTok Music platform, effective Nov. 28, with customer data deletion and a focus on their "Add to Music app" feature. Launched in July 2023, TikTok Music offered paid streaming in Indonesia, Brazil, and later expanded to Singapore, Australia, and Mexico. TikTok aims to enhance music discovery and partnerships with services like Spotify and Apple Music. The decision follows strategic shifts and licensing disputes with record labels.
- ByteDance Ltd.
- ByteDance Ltd. is the Chinese parent company of TikTok, known for utilizing its popular short video platform to enhance music services. ByteDance first attempted to branch into music streaming with Resso in 2020, which was revamped as TikTok Music. Despite its efforts, TikTok Music will be terminated in November 2023, shifting focus to TikTok’s "Add to Music app" feature, which facilitates adding favorite tracks to playlists on partner services like Spotify and Apple Music.
- Apple Music
- Apple Music, one of the largest music streaming services globally, holds a market share of 13.7% as of the second quarter of 2022, according to GF Securities. Following TikTok Music's termination, TikTok will promote its "Add to Music app" feature, allowing users to add tracks they like on TikTok to playlists on partner services, including Apple Music.
- Amazon
- The article mentions that TikTok will promote a feature called “Add to Music app,” which allows users to add tracks they like on TikTok to playlists on partner services, including Amazon. However, it doesn't provide detailed information specifically about Amazon beyond this context.
- Spotify Technology SA
- Spotify Technology SA is the world's largest music streaming service, boasting 626 million monthly active users as of June. Its shares hit a record high following TikTok's announcement to terminate its music-streaming platform. As of the second quarter of 2022, Spotify held a 30.6% market share.
- Tencent Music Entertainment Group
- Tencent Music Entertainment Group is a major player in the global music streaming industry, holding a 13.4% market share as of the second quarter of 2022. It is one of the key competitors alongside Spotify and Apple Music. The group offers various music services in China, leveraging its parent company Tencent's vast digital ecosystem.
- Universal Music Group N.V.
- Universal Music Group N.V. is a major music company that paused licensing content to TikTok in February, criticizing the app for unfair payments to music creators. The companies reached a deal in May to increase artist royalties.
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What Happened When
- July 2023：
- The standalone TikTok Music app debuted in Indonesia and Brazil.
- October 2023：
- TikTok Music expanded its services to Singapore, Australia, and Mexico.
- Late 2023：
- ByteDance ended the Resso service, later revamping it as TikTok Music.
- December 2023 to March 2024：
- The number of countries and regions where TikTok's 'Add to Music app' is available increased from 19 to 165.
- February 2024：
- Universal Music Group N.V. paused licensing content to TikTok, criticizing the app for unfair payments to music creators.
- May 2024：
- TikTok and Universal Music Group N.V. reached a deal that included increasing artist royalties.
- As of end of June 2024：
- Spotify had 626 million monthly active users.
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