ByteDance Shuts Down TikTok Music Amid Struggles and Legal Battles

September 25, 2024
ByteDance Shuts Down TikTok Music Amid Struggles and Legal Battles
  • ByteDance has announced the closure of its music streaming service, TikTok Music, which will cease operations globally on November 28, 2024.

  • Originally rebranded from Resso, TikTok Music was launched in Indonesia and Brazil last year, and later expanded to Australia, Mexico, and Singapore.

  • The service aimed to compete with Spotify by offering lower monthly fees but struggled to gain traction in the U.S. music market, highlighted by a royalties dispute with Universal Music Group.

  • Despite resolving the licensing issues with Universal Music, TikTok Music faced significant setbacks, including a ban in India and layoffs within its division.

  • Even with the impending shutdown of TikTok Music, TikTok remains focused on music-related expansions, although it faces regulatory challenges in key markets.

  • Meanwhile, TikTok is grappling with a potential ban in the U.S., as the DC Circuit Court of Appeals is poised to rule against its challenge to a law that could force divestment from ByteDance.

  • This law, enacted in April 2023, is part of broader concerns regarding data privacy and security related to Chinese influence over U.S. users' data.

  • TikTok's legal team argues that the scrutiny it faces is disproportionate compared to other Chinese companies that collect sensitive data.

  • If a ban occurs, competitors like Instagram and YouTube are expected to capture a significant share of TikTok's audience and advertising revenue.

  • Despite these challenges, TikTok has established itself as a vital platform for music discovery, with many songs gaining popularity through the app before charting.

  • With a substantial user base of approximately 170 million in the U.S., TikTok continues to be a significant player in both social media and music promotion.

  • The reasons for the shutdown of TikTok Music remain undisclosed, but licensing issues and weak adoption rates are speculated to be contributing factors.

Summary based on 16 sources


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