Topline:&nbsp;In order to continue global growth, ByteDance (parent company of the wildly popular social media app TikTok) will reportedly launch a&nbsp;<a rel="noreferrer noopener" href="https://www.ft.com/content/ffaed23a-07dd-11ea-a984-fbbacad9e7dd" target="_blank">music streaming service</a>&nbsp;as soon as next month and is potentially exploring ways to&nbsp;<a rel="noreferrer noopener" href="https://www.wsj.com/articles/tiktok-looking-at-ways-to-shake-off-its-ties-to-china-11574073001?mod=djem10point" target="_blank">remake its image</a>&nbsp;in advance of a rumored 2020 public offering.&nbsp;



<ul><li>The&nbsp;Financial Times&nbsp;reported Sunday that ByteDance is in talks to secure global licensing rights from Warner Music, Universal Music and Sony Music, the world’s largest record companies.&nbsp;</li><li>ByteDance’s still-unnamed music streaming service will reportedly cost less than $10 per month, undercutting monthly subscription fees charged by rivals Spotify and Apple, and will kick off with initial launch markets in Brazil, Indonesia and India; ByteDance declined to comment.</li><li>Those countries could be a tough sell⁠—according to a May 12&nbsp;<a href="https://www.bloomberg.com/news/articles/2019-05-20/tiktok-owner-to-challenge-spotify-and-apple-with-music-service" target="_blank" rel="noreferrer noopener">Bloomberg report</a>, paid music subscriptions are mainly a Western phenomenon, while the most popular music apps in Asia are YouTube and Tencent’s QQ Music, both of which are free.</li><li>Meanwhile, the&nbsp;<a href="https://www.wsj.com/articles/tiktok-looking-at-ways-to-shake-off-its-ties-to-china-11574073001?mod=djem10point" target="_blank" rel="noreferrer noopener">Wall Street Journal</a>&nbsp;reported Monday that Beijing-based ByteDance, facing growing concern from U.S. lawmakers over its user-<a href="https://www.wsj.com/articles/u-s-launches-national-security-review-of-video-app-tiktok-11572641964?mod=article_inline" target="_blank" rel="noreferrer noopener">data storage</a>&nbsp;and content&nbsp;<a href="https://www.theverge.com/2019/10/9/20906971/tiktok-censorship-china-bytedance-musically-marco-rubio-senate-mnuchin-cfius-treasury" target="_blank" rel="noreferrer noopener">censorship</a>&nbsp;practices, is searching for ways to distance itself from its Chinese roots.</li><li>Potential rebranding moves include relocating its operations to Singapore and renaming TikTok, which the company denied, according to the&nbsp;WSJ.</li><li>Both the&nbsp;FT&nbsp;and&nbsp;WSJ&nbsp;reported ByteDance was aiming to IPO sometime next year, which ByteDance also denied to both outlets.&nbsp;</li></ul>



Big number:&nbsp;$78 billion. That was ByteDance’s last reported valuation, making it one of the&nbsp;<a rel="noreferrer noopener" href="https://www.cnbc.com/2019/09/30/tiktok-owner-bytedances-first-half-revenue-better-than-expected-at-over-7-billion-sources.html" target="_blank">most valuable</a>&nbsp;startups in the world.



What to watch for:&nbsp;When ByteDance’s music streaming service actually launches. And if it moves the needle on paid music subscriptions in Asia. China’s Tencent has 800 million music users, but&nbsp;<a href="https://www.ft.com/content/ffaed23a-07dd-11ea-a984-fbbacad9e7dd" target="_blank" rel="noreferrer noopener">less than 5%</a>&nbsp;of them pay for it.&nbsp;



Key background:&nbsp;TikTok made a name for itself as the first Chinese social network to achieve success in the U.S with over 100 million Americans as registered users. It surged in popularity this year as teens flock to the app to make lighthearted pranks, comedy sketches and lip-syncing videos. It’s also the third-most-downloaded app in Apple’s App Store, but it came at a price. According to the&nbsp;WSJ, ByteDance poured&nbsp;<a rel="noreferrer noopener" href="https://www.wsj.com/articles/tiktoks-videos-are-goofy-its-strategy-to-dominate-social-media-is-serious-11561780861?mod=article_inline" target="_blank">$1 billion&nbsp;</a>into advertising and flooded rivals Facebook and Instagram with ads.&nbsp;



&#8211; <a href="https://www.forbes.com/sites/lisettevoytko/">Lisette Voytko</a>

Tag: Music Streaming

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TikTok Owner ByteDance Continues Expansion Efforts With Music Streaming And Possible Rebrand