tick tock parent ByteDance Ltd is reportedly looking to boost its music streaming business and fight against industry heavyweights such as Spotify Technology SA JOB.
What happened: ByteDance has started reaching out to music labels tune the streaming service’s global expansion plans and intends to eventually integrate it with TikTok, the Wall Street Journal reportedciting people familiar with the discussions.
The service is reportedly set to become a premier platform for distributing music worldwide.
TikTok and ByteDance did not immediately respond to gasoline gas requests for comment.
ByteDance is currently negotiating with a music company that has seen a significant boom over the past several years, although the talks have seen several disagreements over evaluating TikTok’s promotional benefits for the labels, the Journal noted.
Several viral in the past TikTok videos helped songs Gain traction coupled with free advertising.
Why it matters: ByteDance’s plans can be viewed as a way to keep its extensive user base within its ecosystem. One of the biggest challenges of the music streaming business, according to the Journal, is how much labels get paid. Spotify has expanded Podcasts and Audiobooks for Margin Improvement.
Apple inc AAPL music streaming service and alphabet inc. WELL Google-in possession youtube also have sizable companies vying for users’ attention.
Continue reading: Spotify analyst finds risk-reward compelling but sees audiobooks as immaterial through year-end and 2023
