The news: Spotify stock took a tumble Wednesday after reports that ByteDance, TikTok’s parent company, is in talks with music labels to expand into music streaming, per Yahoo Finance.
Why it’s worth watching: We identified music streaming as one of five potential businesses for TikTok in its quest to evolve into a super app.
TikTok is considered the go-to platform for discovering new music, which has propelled obscure songs into the Billboard 100 and Spotify Viral 50.
The combination of social video feeds and streaming music on demand is a one-two punch that could augment TikTok’s dominance in user engagement and create a super app.
Music streaming app competition: TikTok’s arrival as a music streaming service will challenge the music streaming app market. Spotify, which is purely a streaming service, has the most to lose.
Why this could succeed: TikTok’s entry into music streaming comes at a precarious time for Spotify with its stock down 75% earlier this month.
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