TikTok will shut down its music streaming service starting Nov. 28, just two years after parent company ByteDance aimed to rival services like Spotify (SPOT) and Apple Music (AAPL).
The company is encouraging users to use the “Add to Music App” feature, which allows them to save songs they find on TikTok to their favorite music streaming services, and has instructed them to transfer their playlists to other services by October 28.
“We will be shutting down TikTok Music at the end of November to focus on our goal of furthering TikTok’s role in driving music consumption and value across music streaming services for the benefit of artists, songwriters and the industry,” Ole Oberman, TikTok’s global head of business development for music, said in a statement.
The move marks a shift in strategy for the company, as it no longer intends to compete with third-party streaming services but rather wants to continue to partner with them.
Following the news, Spotify’s shares rose more than 1% in early trading.
ByteDance began talks with music labels in 2022 to expand its music streaming service, initially called Resso, when the goal was to leverage TikTok’s ability to discover new music and make songs go viral.
The new platform, which has signed licensing agreements with major record labels such as Sony Music Entertainment (SONY), Warner Music Group (WMG), and Universal Music Group (UMG.AS), launched under the new name “TikTok Music” in July 2023. It was initially rolled out in Indonesia and Brazil, and soon entered markets such as Australia, Mexico, and Singapore.
But the company has recently been at odds with record companies over issues ranging from fair compensation for artists and songwriters to protection from artificial intelligence.
Earlier this year, TikTok and Universal Music Group (UMG) faced a months-long dispute that led to the removal of songs from the platform by top artists including Taylor Swift, Drake, Justin Bieber and Adele.
The dispute was eventually resolved in May, with the two sides signing an updated agreement that addressed some of the concerns.
TikTok is now at the center of a bipartisan political battle after President Biden signed a new bill that will ban the app in the US unless ByteDance sells its ownership stake.
TikTok made its case in a federal appeals court last week after filing a lawsuit to block the new bill, but if that fails, the ban could take effect as early as January 2025.
The story continues
ARCHIVE – TikTok will shut down its music streaming service starting Nov. 28. (AP Photo/Matt Slocum, Archive) (The Associated Press)
Alexandra is a senior reporter at Yahoo Finance. Follow her on Twitter. Translator Please email me at alexandra.canal@yahoofinance.com.
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