
TikTok’s parent company, ByteDance, has reportedly developed plans to expand its music streaming service, Resso, into more than a dozen new markets. While the streaming service’s planned expansion does not include the U.S., the Wall Street Journal indicates that it would put Resso into direct competition with streaming giants like Apple Music and Spotify. In addition to expanding into new markets, ByteDance reportedly plans to incorporate Resso into TikTok down the line. However, significant hurdles still exist.
ByteDance has been negotiating terms with several music labels, but Variety reports that “talks have been strained at times” for a number of reasons. Most notably, there are rumored disagreements about how to value TikTok’s promotional benefits for the labels and concerns about the involvement of the Chinese government. Not to mention, the Wall Street Journal points out that integrating Resso into TikTok would create issues with royalties and the like.
While roadblocks exist, there is no question regarding the significant growth of TikTok over the last few years. Just last year, the social media app drove ByteDance’s revenue up 80% to $61.7 billion. As recently as September, ByteDance was valued as high as $300 billion.