ByteDance Shuts Down TikTok Music Amid Struggles and Legal Battles
September 25, 2024ByteDance 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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Sources
WIRED • Sep 23, 2024
TikTok's Defense Strategy Involves Throwing Shein and Temu Under the BusInsider • Sep 20, 2024
What TikTok ban? Marketers, employees, and creators aren't worriedInsider • Sep 24, 2024
TikTok abandons plan to take on Spotify and Apple in music streamingTechCrunch • Sep 24, 2024
ByteDance is shutting down TikTok Music globally | TechCrunch