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Does the overcrowded and cut-throat music streaming business have room for an additional player? The world’s most valuable startup certainly thinks so.
Chinese conglomerate ByteDance, valued at over $75 billion, is working on a music streaming service, two sources familiar with the matter told TechCrunch. The company, which operates popular app TikTok, has held discussions with music labels in recent months to launch the app as soon as end of this quarter, one of the sources said.
App - Premium - Tier - Sources - Bloomberg
The app will offer both a premium and an ad-supported free tier, one of the sources said. Bloomberg, which first wrote about the premium app, reported that ByteDance is targeting emerging markets with its new music app. A ByteDance spokesperson declined to comment.
For ByteDance, interest in a music app does not come as a surprise. Snippets of pop songs from movies and albums intertwined with videos shot by its humongous userbase is part of the service’s charm. The company already works with music labels worldwide to licence usage of their tracks on its platform. In China, where ByteDance claims to have tie ups with over 800 labels, it has been aggressively expanding efforts to find music talents and urge them to make their own tracks.
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Besides, ByteDance has been expanding its app portfolio in recent months. Earlier this year, the company released Duoshan, a video chat app that appears to be a mix of TikTok and Snap. This week, it launched Feiliao, another chat app that is largely focused on text-driven conversations. At some point, the company may have realized the need for a standalone music consumption app.
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