From letting anyone make short music videos to streaming music in full, TikTok’s business could be changing.
TikTok is one of the world’s favourite apps, with over 500 million users creating short clips and music videos on their video platform. Despite global success the company have reportedly been working at a loss. Now reports are suggesting that TikTok are looking to create a new service to turn profits around.
The South China Morning Post reported last week that TikTok’s owners, Bytedance, are planning a music streaming service like Spotify to launch internationally. The people who revealed the supposed plans said that there are 100 people working on it for a launch “soon”.
With a valuation of $76 billion the company are in a comfortable position with millions of users they should be able to easily recruit. The difficulty will be competing with all of the major streaming services that have already spent years proliferating around the globe.
The rumours have come out as Bytedance’s contracts with Universal Music, Sony Music, and Warner Music expire in a few weeks. The labels are asking for bigger payments for TikTok so it’s possible that Bytedance are going another level and paying more to license for multiple services.
It will be a challenge to launch an entirely new music service in the crowded industry but with a supposed global approach and using their massive engagement with young people online it could be the success that Bytedance want.