For better or worse, TikTok has become a monster in the world of music. The next logical step would be to further ensnare users by launching its own streaming music service which would make it unnecessary to leave the app in order to listen to a full song.
ByteDance, TikTok’s parent company, already has a streaming service called Resso which operates in Brazil, India, and Indonesia. Word now is that ByteDance is negotiating with record companies about expanding Resso’s reach. “More than a dozen” territories are currently on the table, including the U.S.
The plan is for Resso to “eventually be integrated within TikTok and to serve as a major platform for distributing music around the world.” (Per the Wall Street Journal)
Lots still have to be done given that many in the recorded music industry think that the revenues coming from licensed music used on TikTok isn’t sufficient. Negotiators are pushing for a revenue sharing model whereby rightsholders get a fixed percentage of all the revenue generated by videos featuring music. This is how Meta/Facebook works its deal with a couple of major labels. Meanwhile, Sony has pulled all its music from Resso over rights and payments issues.
Should deals we worked out–and really, given TikTok’s explosive growth and amazing reach–this is too big of an opportunity to let slip. They’ll figure it out. And then Spotify, Apple Music, Amazon Music, and all the others will have a massive new competitor to deal with.