#TheWeeklyRoundUp - 27.09.24

R.I.P., TikTok Music — Streaming Service to Shut Down in November Following 2023 Launch (Digital Music News)

The namesake video-sharing giant’s standalone music streaming platform is now set to shut down at November’s end.

ByteDance-owned TikTok confirmed its streaming service’s cessation of operations via a statement as well as an update on the appropriate website. The latter underscores the permanent nature of the move; users’ “account information and personal data will be automatically deleted following the closure of TikTok Music,” per the text.

Said users have until October 28th to transfer their playlists to different services and until November 28th to request refunds for any unused subscription time. Absent from TikTok Music’s website is any mention of the precise cause(s) of the shutdown. Similarly, TikTok global head of music business development Ole Obermann in a statement confirmed the cessation of operations but didn’t provide much insight into the decision.

"Our Add to Music App feature has already enabled hundreds of millions of track saves to playlists on partner music streaming services,” relayed the longtime ByteDance/TikTok exec Obermann. “We will be closing TikTok Music at the end of November in order to focus on our goal of furthering TikTok’s role in driving even greater music listening and value on music streaming services, for the benefit of artists, songwriters, and the industry.”

However, it’s possible that licensing problems (or at least friction) of some sort contributed to the decision. TikTok set its standalone streaming ambitions in motion in 2022, and even back then, reports suggested the majors were concerned with the service’s monetization potential.

Nevertheless, the offering replaced ByteDance’s existing music app, Resso, in Brazil and Indonesia during the summer of 2023 – complete with smaller monthly costs than Spotify, which currently charges the equivalent of about $4 and $3.60, respectively, for Individual in the nations.

Shortly thereafter, the platform reached Australia, Mexico, and Singapore. In retrospect, the layoff round that hit the division responsible for TikTok Music the following month, August of 2023, wasn’t an encouraging sign for the service.

Closer to the present, it was only earlier in 2024 that TikTok proper was entangled in a licensing dust-up with Universal Music. The since-resolved dispute, in many ways a distant memory now, saw UMG pull its catalog from TikTok for a time.

In any event, notwithstanding the possibility of licensing hang-ups behind the scenes, TikTok Music’s exit from the streaming arena might simply reflect weak adoption rates and the considerable resources required to maintain the non-core product. Of course, competition is stiff from the likes of Spotify, Apple Music, YouTube Music, Tidal, Deezer, SoundCloud, and others yet.

Moreover, TikTok is still spearheading music expansions (the app last month welcomed a Bandcamp channel) and has far bigger fish to fry when it comes to fending off a quick-approaching ban in the world’s largest economy.

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YouTube Music Gets More Expensive as Users in 16 Countries Report Major Price Hikes For YouTube Premium (Music Business Worldwide)

YouTube is reportedly raising the cost of its Premium subscription service in multiple territories, effectively increasing the price of its YouTube Music streaming platform for many users.

Social media users started reporting the price increases over the weekend after receiving emails from YouTube, with affected regions including countries in the European Union, the Middle East, South America, and Southeast Asia. Both Individual and Family plans are seeing price hikes, with Norway seeing a 42% increase in the price of an Individual subscription to NOK 169 (USD $16.26) per month from NOK 119 ($11.45), according to users in a Reddit thread.

For example, the thread shows that the Czech Republic is seeing an increase in the cost of a YouTube Premium Family plan of 44.6%, to CZK 389 ($17.34) per monthn from CZK 269 ($11.99).

Similar increases have been reported in other regions such as Ireland, Netherlands, Italy, Belgium, Switzerland, Denmark, Sweden, Singapore, Thailand, Indonesia, the United Arab Emirates, Malaysia, Saudi Arabia, and Colombia, according to the Reddit thread that tracks the prices.

Some users have shared screenshots of the price update, in which YouTube explains, “We don’t make these decisions lightly, but this update will allow us to continue to improve Premium and support the creators and artists you watch on YouTube.”

Emails show that the new prices will take effect on November 4.

The price increases have sparked frustration, with users criticizing what they see as the already high cost of YouTube’s streaming services. Some argue that YouTube Premium’s features, like ad-free viewing and background playback, don’t justify the higher prices.

One Reddit user said: “I just cancelled. This increase makes YouTube by far the most expensive streaming service, clocking in at more than what I pay for Amazon Prime, Netflix and HBO combined.”

Another user said: “I would have considered a 10% price increase. Good luck losing customers and revenue – I’m moving our music library to Spotify Duo next weekend and will find a way around the Youtube ads. Good riddance, Alphabet.”

While some users have threatened to cancel, others expressed frustration that the Premium Lite plan still includes ads.

The price adjustment in more than a dozen markets arrived over a year after YouTube quietly raised the price of its Individual Premium service in the US by $2 to $13.99 per month, and almost two years since it hiked the cost of its Premium Family package by $5 to $22.99.

The latest move sheds light on YouTube’s strategy for its music streaming platform. The company has been experimenting with different tiers and features to cater to a diverse range of users.

A recent study by marketing data and analytics company Kantar found that YouTube Music is the “most adopted music streaming service” in the second quarter of 2024, which it attributed to the platform’s focus on music discovery.

As of February, YouTube Music surpassed the milestone of 100 million paid YouTube Music and Premium subscribers worldwide.