TikTok's Entry into Music Streaming Sector Raises Concerns for Spotify's Market Share

Spotify Technology S.A. SPOT could be up for a rough ride as ByteDance Ltd-owned short-video company TikTok shared plans to launch a new music streaming service in Brazil and Indonesia.

Previously ByteDance said it would stop its existing music streaming service Resso as of September 5 in both countries and maintain its operations only in India, Reuters reports.

Last year reports suggested ByteDance was eyeing expansion into more countries of its music streaming service.

As per the website, TikTok Music will have three monthly plans in Brazil that will cost between 8.5 reais ($1.73) and 26.9 reais, slightly below the service price Spotify offers.

Wall Street analysts had flagged concerns over TikTok posing as a competitor for streaming companies like Netflix Inc NFLX.

Previously, Spotify explored adding full-length music videos to its app, intensifying rivalry with Alphabet Inc’s GOOG GOOGL YouTube, and TikTok. In 2023, Spotify debuted “clips,” videos shorter than 30 seconds, similar to how they might use TikTok.

Price Action: SPOT shares traded higher by 2.62% at $160.73 premarket on the last check Friday.

Photo by olivier-bergeron via Unsplash