TikTok has already put a dent in Meta’s ad business, but now the company is preparing to take on even more Western tech giants with a push into music streaming and e-commerce.
Driving the news: TikTok parent ByteDance is laying the foundation to compete with both Spotify and Amazon, according to a pair of reports this week.
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Music: ByteDance is in talks with music labels to secure access to their catalogues, the first step in launching a global streaming service that could compete with Spotify.
- E-commerce: TikTok also plans to open its own e-commerce fulfillment centres across the US to better support merchants that are selling through the app.
Why it matters: The rapid growth of TikTok’s ad business has forced established tech players like Meta and YouTube to copy… sorry, play catch-up (rolling out Instagram Reels and YouTube Shorts, respectively)—now there’s a reason for Spotify and Amazon to worry.
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TikTok is currently one of the most influential drivers of music trends (many hits now become popular only after going viral on TikTok).
- The app is also a powerful discovery tool for new products. Its Chinese version (Douyin) now dominates “live shopping”—where creators sell products live.
Yes, but: ByteDance has struggled to break into both the music and shopping space outside of China so far, and has a ways to go to catch up to Amazon and Spotify.
- Music labels have reportedly balked at ByteDance’s proposed licensing fees, and the company’s early forays into live shopping outside of China have so far been a bust.
Zoom out: Western social media apps have traditionally focused on their core features, but Chinese apps (like WeChat) offer many, from messaging to payments to e-commerce. If ByteDance gets its way, TikTok could be the first “everything app” in Western markets.