ByteDance Pulls the Plug: TikTok Music to Cease in Five Countries

Summary:

ByteDance to Shut Down TikTok Music in Indonesia by November

ByteDance, the Chinese tech giant, announced that it will shut down its TikTok Music service in Indonesia, Brazil, Australia, Singapore, and Mexico by November. This decision follows the closure of a similar service, Resso, in July 2023. The official announcement on TikTok Music’s website states that the service will be automatically canceled on November 28, 2024. Users who wish to transfer their playlists to other streaming services must do so by October 28, 2024, and refund requests must be submitted by November 28, 2024.

Reasons for Closure

According to Ole Obermann, TikTok’s Global Head of Music Business Development, the closure aims to focus on enhancing TikTok’s role in promoting music listening and increasing value for streaming services, benefiting artists, songwriters, and the industry. TikTok will continue to partner with streaming services rather than compete with them.

Historical Context

TikTok Music originated from ByteDance’s Resso, launched in India and Indonesia in 2019 and later expanded to Brazil. In 2023, ByteDance rebranded Resso as TikTok Music in Brazil and Indonesia and further expanded to Singapore, Australia, and Mexico. TikTok has significantly impacted music discovery and streaming, as highlighted by a study conducted by TikTok and entertainment data research firm Lumiate.

Industry Relations

ByteDance also owns a music distribution platform called SoundO, which has not expanded internationally beyond a few markets. TikTok’s relationship with the music industry has been strained, with Universal Music Group (UMG) pulling its catalog from the service earlier this year due to royalty disputes. However, a new agreement was reached in March 2024.

Challenges and Future Plans

Separately, TikTok is fighting against a bill that could potentially ban the short video app in the United States, which may have hindered ByteDance’s plans to expand TikTok Music into the U.S. market.

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Key Points:

Key Point 1: ByteDance’s Strategic Shift

ByteDance is shutting down TikTok Music in multiple countries by November 2024.

The service will be canceled automatically on November 28, 2024.

Users must transfer playlists by October 28, 2024, and submit refund requests by November 28, 2024.

Key Point 2: Focus on Enhancing TikTok’s Role in Music

The closure aims to focus on promoting music listening and increasing value for streaming services.

TikTok will continue to partner with streaming services rather than compete with them.

Ole Obermann emphasized the benefits for artists, songwriters, and the industry.

Key Point 3: Historical and Industry Context

TikTok Music originated from ByteDance’s Resso, launched in 2019.

Resso was rebranded as TikTok Music in 2023 and expanded to several countries.

TikTok has significantly impacted music discovery and streaming.

Key Point 4: Industry Relations and Challenges

ByteDance also owns a music distribution platform called SoundO.

TikTok’s relationship with the music industry has been strained, particularly with UMG.

A new agreement was reached in March 2024 after a royalty dispute.

Key Point 5: Future Plans and Challenges

TikTok is fighting against a bill that could ban the app in the U.S.

This may have hindered ByteDance’s plans to expand TikTok Music into the U.S. market.

Resources:

ByteDance

ByteDance is a Chinese multinational internet technology company known for its popular apps like TikTok and Douyin. Founded in 2012, ByteDance has rapidly grown into one of the world’s most valuable startups, leveraging artificial intelligence to deliver personalized content to users. The company has faced regulatory challenges and scrutiny in various countries but continues to expand its portfolio of digital products and services.

TikTok

TikTok is a short-form video platform that has become a global sensation, particularly among younger audiences. Launched by ByteDance in 2016, TikTok allows users to create and share 15-second videos set to music. The app’s algorithm-driven content discovery has made it a powerful tool for music promotion and viral trends. Despite its popularity, TikTok has faced regulatory challenges and concerns over data privacy and content moderation.

Resso

Resso is a music streaming app developed by ByteDance, initially launched in India and Indonesia in 2019. The app offers a social music streaming experience, allowing users to comment on songs and share lyrics. In 2023, ByteDance rebranded Resso as TikTok Music in Brazil and Indonesia, expanding its reach to other countries. Despite its innovative features, Resso faced competition from established streaming services like Spotify and Apple Music.

Universal Music Group (UMG)

Universal Music Group is one of the world’s leading music companies, representing a vast catalog of artists and recordings. UMG has been at the forefront of the music industry’s transition to digital streaming, negotiating licensing deals with various platforms. Earlier this year, UMG pulled its catalog from TikTok due to a royalty dispute, but a new agreement was reached in March 2024.

SoundO

SoundO is a music distribution platform owned by ByteDance, designed to help artists distribute their music across various streaming services. While not as widely known as TikTok, SoundO aims to leverage ByteDance’s technological capabilities to offer a seamless distribution experience. The platform has not expanded internationally beyond a few markets but remains a part of ByteDance’s broader music strategy.

Next Steps:

1. **Monitor User Feedback:** Collect and analyze user feedback on the closure of TikTok Music to understand the impact and address any concerns.
2. **Strengthen Partnerships:** Focus on building stronger partnerships with existing streaming services to enhance TikTok’s role in music promotion.
3. **Regulatory Compliance:** Ensure compliance with local regulations and address any legal challenges, particularly in key markets like the United States.