Analytic Dreamz: Notorious Mass Effect - "TIKTOK TO SHUT DOWN ITS MUSIC STREAMING BUSINESS"

Episode Date: November 4, 2024

Linktree: https://linktr.ee/AnalyticIn this insightful segment of "Notorious Mass Effect," Analytic Dreamz delves into the significant announcement of the global shutdown of TikTok Music, scheduled for November 28, 2024. Here's what you need to know about this pivotal move in the music streaming industry:Shut Down Overview: TikTok Music, ByteDance's venture into music streaming, will cease operations worldwide by late November 2024. Originally launched in 2023 in select markets like Indonesia and Brazil, it later expanded but never made it to the U.S. due to various challenges.Reasons Behind the Closure: Analytic Dreamz examines ByteDance's strategic decision to discontinue TikTok Music, focusing instead on leveraging TikTok's vast user base for music discovery through partnerships with existing streaming services. This shift aims to enhance the music app integration experience on TikTok.User Impact: Listeners will learn about the deadlines for transferring playlists and the process for obtaining refunds. Users have until October 28, 2024, to save their playlists, with refund requests or automatic issuances set for those subscribed beyond the shutdown date.Music Discovery Statistics: A look into the power of TikTok in shaping music trends, where a significant portion of its users are more inclined to explore new music after discovery on the platform.Competitive Landscape: We discuss how TikTok Music struggled against giants like Spotify, Apple Music, and YouTube Music, which offer extensive libraries and sophisticated technology for user engagement.Industry Relations: Analytic Dreamz will touch on ByteDance's rocky relationship with major music labels, including a resolved dispute with Universal Music Group, highlighting how such conflicts can influence business decisions in the music streaming sector.Strategic Pivots: The segment will cover ByteDance's new strategy to enhance features like "Add to Music App," facilitating easier integration with other music services, reflecting a broader trend towards collaboration rather than competition in the streaming world.Join Analytic Dreamz in this comprehensive analysis to understand the implications of TikTok Music's shutdown, the future of music discovery on TikTok, and how these changes could affect the industry landscape, listeners, and the music artists themselves. Stay informed on the latest shifts in the digital music ecosystem right here on "Notorious Mass Effect."Privacy & Opt-Out: https://redcircle.com/privacy

In today's tech bites, TikTok shutting down its music streaming service. TikTok's parent company, ByteDance, says TikTok music will end in November just over a year after it launched. Existing TikTok accounts were able to sync with TikTok music, allowing people to download songs that appeared in videos. ByteDance had been in royalty disputes with music publishers. Ladies and gentlemen, we have seen one of the pivotal players as far as marketing machines. machines for independent artists bite the dust support went out for TikTok music as it will be shut down globally on november 28th 24 now of course tick talk originally launched in july 2023 in indonesia and brazil expanded to singapore australia and mexico and mexico but never reached the U.S.

So as far as the platform rebranding, they've just decided to completely shut it down globally. As ByDance, which is the owners of TikTok and all these other extracurricular lanes, they're going down with TikTok, they basically said that they want to focus on TikTok's role in enhancing music discovery through streaming services rather than directly competing in the show.

streaming market. Translation, Universal Music Group were going to put foot on neck if they ever tried to make their own DSP. When I tell you that Universal Music Group, which for those who don't remember, earlier this year, I believe, UMG basically took all the artists off of TikTok. Why did they do that? Simply for the fact that they weren't getting enough cut of the pie as far as, you music as far as royalties right as far as the payments that they was receiving so i'm trying to find out

when this happened um let's see ticto umg dispute date i think it happened okay yeah so january january 30th 2024 if you look up ticot analytic dreams everything as far as me covering ticot will pop up on whatever podcast platform you listen on, but basically, I covered it in its entirety. So I'm not going to be it a dead horse, but Universal Music Group is unequivocally the big dogs in the music industry. They told TikTok to either pay us more or we're taking our artists off. TikTok basically said, who you think you're talking to? So UMG was like, all right, I got you. Bet that. And they took all the artists off the platform, right? The biggest, gangster in the music industry, Taylor Swift, comes during the hiatus of them taking their

artists off of TikTok and tells UMG, if you don't put us back on TikTok, I'm going to raise you know what via my swifties. And now, coincidentally, TikTok and UMG found a way to co-existent, as UMG's catalog is now back on TikTok. So anyways, that's the ratchet version of what happened. But anyways, the reason why I say that is because I think this is just another effect of them trying to get into the music industry. Because yes, I do believe TikTok ultimately is one of the most pivotal marketing machines you can have as an independent musician. But UMG, Warner, Sony are not going to let TikTok take over because then it makes their, quote, unquote, major label machine look. Basically, it makes it look like it can't compete.

And that's a bad thing when you're paying money to somebody who's, quote unquote, a master marketer, but somebody who's an independent artist promoting their music on TikTok day and day out is getting more streams than you simply for the fact that TikTok has a better algorithm when it comes to algorithm what's the word algorithmically i think i almost said it anyways i'm keeping that in so ticktox algorithm basically promotes content in a way that's very unique and effective i don't know why other social medias haven't been able to figure it out but A song on TikTok can literally go viral overnight. Doesn't matter when it's released. Reach millions of people that can lead to all type of brand deals and success in the music industry. Notable examples, Little Knows X and Doja Cat. So popular on TikTok to the point now, people don't even look at them as like a TikTok artist. Even though most of their viral hits, the long-term hits,

and as far as how they've found and managed to keep themselves in front of the masses has been done through TikTok. So anyways, those are just two examples I wanted to use. But there's so many other examples of, and that's a major label artist using the independent machine of TikTok. That's when it's combined. You get a little Nas X and a doja cat. You already know how big those two are.

So getting back into TikTok, I think this. is a big deal that TikTok music is going down but it's not as much of a big deal because by dance is a reason of wanting TikTok to play more of a role than like directly competing in the streaming market makes sense because they don't want UMG to ever try to put their foot on their next again because who knows if Taylor Swift will save them next time but users have as far as TikTok music users have until October 28th to transfer a playlist and refund requests must be submitted by November 28th and then as far as the overall refunding details I mean Apple and Google play can easily request refunds and then you'll be issued automatically depending on the

platform and then if the subscriptions extend beyond November 28th so you know if it expires before that you can't be like oh I want a refund for a month you didn't even pay for right so anyways um in consequence of TikTok music being shut down, ByteDance will be pivoting to expanding the add to music app, which features, I don't know, they're expanding the app of TikTok by putting the feature of add to music app, where TikTok users will be able to save tracks to platforms like Spotify, Apple Music, and Amazon music, and this service will be active. I don't know, it's already active in 150 countries. So basically, TikTok music was never going to get off the ground.

for the simple fact that these major labels allegedly have more control than they let on when it comes to a Spotify, Apple music, a YouTube music. Because more notably, that's the whole reason I even brought up the Universal Music Group dispute in this segment,

simply for the fact that UMG literally pulled the whole entire catalog off of TikTok because TikTok wasn't paying them enough. So, when have you, ever seen that happen with Spotify, YouTube, or Amazon? Never, right? Because they play ball. TikTok, I'm not going to say why or how or what I think is the reason. But let's just say they were

perplexed that UMG was asking so much and they thought that they was out of their mind. So they was like, take your artist and they took them. So yeah, hopefully TikTok learns to play ball in the music industry because, hey, what? what that one meme say, it get wicked. You'd be like, it get wicked for real. And I don't know if they have certain procedures in place to protect them from that. I mean, because the U.S. government, as we speak, is trying to take the whole platform down. So for TikTok music to be taken down by TikTok, it's almost as if they're focusing on trying to play ball when it comes to the U.S. market, when it comes to music market.

And that was basically all I had to say. I think there was something else I was wanting to get into. But I think I covered everything because the disputes, because if you don't know, I mean, TikTok would still play a huge role in music discovery, even without TikTok music. I mean, TikTok in itself has 170 million U.S. users. And 67% are more likely to explore a song after hearing it on TikTok, which is insurmountable when it comes to the other platforms. not even the conversion rate isn't even close to 67% when you listen to music on other

apps so for some reason TikTok has turned into the ANR basically the epitome of an R right that is basically TikTok at this point as far as getting the conversion rates to lead people to listen to more independent music so I think it's a good thing because with the market share currently i mean independent artists literally i say only it's still a significant amount when you think about the field but others which is independent artists have three percent of the field and the UMG has 59 percent warner has 20 percent and sony has 18 percent and this is the market share of all music out on dsps so independent artists are already fighting behind the eight ball but now it's like ticot helps them have more of

of a chance of blowing up compared to an artist under a major machine. So them shutting down TikTok music effectively hurts the different ventures and the sub apps of TikTok. But as far as TikTok, they just have to worry about being taken down by the U.S. government. Because if they don't divest into U.S. companies, then it may be revisiting TikTok shutting down soon. So with that being said, click my link to your my bio. Let me know on one of my social medias. What do you think about TikTok music shutting down globally on November 28th, 2024? And did you ever use TikTok music?