TikTok’s Tune Change: From Streaming Rival to Music App Ally

By The Malketeer

TikTok Music Goes Offline on 28 November, 2024

TikTok has announced plans to shut down its music streaming service.

This move marks the end of a bold experiment to challenge industry giants like Spotify and Apple Music, while simultaneously signalling a strategic pivot in TikTok’s approach to the music industry.

The Final Countdown

Come November 28, 2024, TikTok Music will officially go offline, bringing to a close a venture that began in 2019 under the name Resso.

The service, which had expanded its reach to markets including Brazil, Indonesia, Australia, Mexico, and Singapore, aimed to capitalise on TikTok’s undeniable influence in the music world.

Users of the soon-to-be-defunct service aren’t being left in the lurch, however.

TikTok Music has issued a clear directive to its customer base: transfer your playlists to other services by October 28.

After the shutdown, all customer data will be deleted, drawing a definitive line under this chapter of TikTok’s music ambitions.

From Competitor to Collaborator

Rather than continuing its bid to carve out a slice of the streaming pie, TikTok is adopting a more collaborative stance with existing music platforms.

The company’s statement on September 24 highlighted its ‘Add To Music App’ feature as the new focus of its music strategy.

This feature, introduced last year, acts as a bridge between TikTok and major streaming services like Spotify, Apple Music, and Amazon.

It allows users to seamlessly save tracks they discover on TikTok to playlists on these partner platforms, effectively positioning TikTok as a discovery engine rather than a direct competitor.

The Power of Short-Form Video in Music Discovery

TikTok’s influence on the music industry is undeniable.

The platform has been credited with catapulting songs to hit status and launching the careers of new artists.

This power hasn’t come without its challenges, however.

The company has faced off with record labels demanding higher compensation for the use of their music in TikTok’s short-form videos.

A notable example of these tensions came earlier this year when Universal Music Group NV engaged in a months-long standoff with TikTok.

The dispute resulted in the temporary removal of music from major artists like Drake and Rihanna from the platform, underscoring the complex relationships between social media, music discovery, and streaming rights.

A New Harmony in the Digital Music Ecosystem?

TikTok’s decision to shut down its streaming service and focus on driving users to established platforms could signal a new era of cooperation in the digital music landscape.

By leveraging its strengths in content creation and viral trends, TikTok can continue to play a crucial role in music discovery without the overhead and challenges of running a full-fledged streaming service.

For marketers, this shift presents both challenges and opportunities.

While the loss of TikTok Music as a potential advertising platform may disappoint some, the enhanced integration with major streaming services could open up new avenues for cross-platform campaigns and more targeted music-based marketing initiatives.

After 20 years of evolving technology, shifting market trends, and adapting to changing consumer behaviour, the media landscape has nearly reached saturation.

We’ve optimised to the fullest, providing advertisers with abundant choices across technology, platforms, data-driven marketing, CTV, OTT, DOOH, influencer marketing, retail, etc.

Media specialists have diversified, but with more options comes the challenge of maintaining income growth. The industry is expanding, but revenue isn’t keeping pace.

Now, we’re at a TURNING POINT: time to explore and harness new sustainable revenue streams. While GroupM forecasts a 7.8% global ad revenue growth in 2024, challenges like antitrust regulation, AI and copyright issues, and platform bans persist.  

Collaboration is key: partnerships that thrive on synergy, shared values, and aligned goals are becoming increasingly essential.

Hence, the Malaysian Media Conference, in its 20th year, has assembled the partners and players under one roof on October 25 for a day of learning, sharing, and exploring.

 

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