'This Chinese company never sits still to dominate the world's consumers.'
TikTok's parent company, ByteDance Ltd plans to break into the music streaming service industry in an effort to compete with Spotify Technology.
It is understood that ByteDance wants to take advantage of the integration of music in TikTok and started discussions with several music label companies to expand their influence in the industry.
As you know, ByteDance already launched their own music streaming service, Resso, a few months ago.
So far the Resso application is understood to only be available in the Indian, Indonesian and Brazilian markets but will not penetrate the United States (US) market.
In general, music has become part of TikTok's algorithm and the company seems to want to keep users hovering in their ecosystem.
Even so, ByteDance's plan to penetrate the music industry is not easy because there is a factor of payment to the label company based on the income earned.
Those factors not only prevented ByteDance from developing Resso's reputation, but also caused the project to be delayed several times.
Spotify itself also faced the same problem and took the approach of introducing podcasts and audiobooks to balance their profit margins.
On the other hand, ByteDance's plans are seen to challenge Apple Music and Alphabet Inc, both of which also offer paid song streaming services.
As of this writing Spotify shares are trading up 1.28% at $83.18 with a market capitalization of $16.03 billion.
