ByteDance wants to compete with streaming service Spotify

TikTok parent company ByteDance wants to bring its music streaming service Resso to twelve other markets. The company wants to compete with industry giants such as Spotify and Co.

Only reported in early August Business Insiderthat TikTok parent company ByteDance wants to enter music streaming with its own platform. Less than a month later, the Resso streaming service was already available in the first three markets.

Now, in addition to India, Indonesia and Brazil, twelve more markets are to be added worldwide. Then as the Wall Street Journal reportedByteDance is currently negotiating with music labels.

How will ByteDance expand with Resso?

ByteDance wants to take the next step with its music streaming service to be able to compete with industry leader Spotify WSJ citing insiders.

ByteDance wants to introduce Resso in more than a dozen other markets. The USA should not yet be part of this expansion step.

However, ByteDance wants to make the service available worldwide. Via an integration into TikTok, users would then be able to discover songs and “easily subscribe to music”.

ByteDance faces adversity

But ByteDance’s ambitions have so far encountered difficult negotiations. The talks with the music labels were “at times tense”. According to the insiders, there were differences of opinion.

ByteDance can fall back on numerous agreements with muscle labels. So far, however, these have only applied to the short video service and cannot be extended to regular music streaming.

There are also concerns on the part of the big music bosses. They are said to have complained about how difficult it is currently to make money with Resso on the three existing markets.

The music labels are frustrated because the free resource hardly differs from the paid one. There is no incentive for users to make the payment upgrade.

For example, Sony Music Group has let its contract with Resso expire in all three markets. The label’s music library then had to be removed from the streaming app.

Resso has teething troubles

So far, things are not going too well for Resso in India, Indonesia and Brazil. Because very few of the users pay for a subscription to the music streaming service.

According to insiders, the number should be in the low single-digit percentage range. For comparison: At Spotify, almost 45 percent of users worldwide have now switched from the free to the paid model.

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