Spotify has long dominated the streaming business, having launched long before competitors such as YouTube Music and Apple Music.
TikTok is a new competitor that already has a good grip on what its users enjoy listening to. People are discovering many of their favorite songs on TikTok recently.
If you're one of them, you'd be one of the 75% of TikTok users who think the app has helped them find new music. ByteDance, a multinational firm, has filed patents for a TikTok music streaming service.
TikTok has witnessed tremendous growth since its introduction in 2017, earning close to $4 billion in 2021 and projected to earn $12 billion in 2022.
The fascinating thing is that TikTok has already successfully created a music streaming business. ByteDance's first music streaming app is Resso.
While TikTok's growth is a favorable indicator of its prospective success, it is unclear whether the company will achieve more success with profit margins.
Spotify may be the most well-known name in music streaming, but the company has long struggled to generate a profit from its musical material.
Over the last few years, the corporation has shifted its focus to expanding its podcast capabilities, acquiring podcast networks Megaphone and the Ringer for an estimated $400 million in 2020.
Spotify's user base makes the company attractive for other reasons as well. The data gathered as a result of the app's frequent use has numerous lucrative uses.
If this well-known name in music streaming is unable to compete with TikTok's growing success, a big number of users may depart the platform.