Bytedance said to be in midst of developing new music-streaming service
Apr 12, 2019 (China Knowledge) - Chinese startup Bytedance is said to be developing a new Spotify-like music streaming service app for overseas markets.
The company which is now the world’s most valuable startup at a valuation of USD 76 billion has put off any plans of going public in the near future as the company still requires a large amount of cash to fund its global expansion and going public would only increase investor scrutiny on the company’s capital expenditure.
While launching a new music-streaming app would provide Bytedance with a new revenue stream, it would also require the company to burn more cash to pay for the music digital rights.
Bytedance currently operates the popular short video app TikTok that allows users to customize videos with a variety of effects such as adding in short music sound tracks to accompany their videos.
However, the company’s current music licensing deals with music labels such as Universal Music, Sony Music and Warner Music are expiring in a few weeks and these music labels are demanding for more payment from Bytedance for its music licensing deals.
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