TikTok owner Beijing ByteDance Technology Co Ltd is in talks with big music labels – Universal Music, Sony Music and Warner Music – for global licensing deals to include their songs on its new music subscription service, the Financial Times reported on Sunday.
Not only that, Indian record labels also are involved in negotiations to make their songs available on the new platform. ByteDance is looking to launch its music streaming as soon as next month, initially in emerging markets such as India, Indonesia and Brazil, before a future opening in the United States, the FT reported.
The FT said that music executives are “keen to make money” from the free-to-use app TikTok, which gained popularity by letting users record videos of themselves lip-syncing or dancing to music.
Spotify’s stock declined 3% and Tencent Music slipped 2% in early Monday trading following the report.
ByteDance recently revealed it has amassed more than one billion monthly active users across its apps. TikTok users spent a record $10.8 million within the app in June, with US users accounting for more than 20% of in-app purchases, according to data analytics firm Sensor Tower.
ByteDance has not given a name to its music app yet and pricing remains unclear, although it is expected to cost less than the $10 a month charged by Spotify Technology SA, Apple Inc and others in the United States, according to the report.
The company was not immediately available for comment on Sunday.