ByteDance negotiates with record companies to use TikTok to expand music services globally

People familiar with the matter said that ByteDance has begun negotiations with record companies, hoping to expand its streaming music service globally in order to compete with industry leaders such as Spotify.

Significant hurdles remain in the talks, but ByteDance hopes to eventually integrate its music service into TikTok, a major platform for distributing music around the world, the people said. ByteDance has discussed launching its Resso music streaming service in a dozen other markets in recent months, which is currently only available in India, Indonesia and Brazil. The U.S. isn't part of Resso's next phase of expansion, but ByteDance has said it wants the service to be available globally so users can discover songs on its short-video app and easily subscribe to music.

Negotiations have at times become tense due to disagreements over how to assess the promotional benefits of TikTok for record companies, the people said. The music market has been growing rapidly over the past few years, driven by the growth of the streaming market and the establishment of standard rates for music licensing. ByteDance has yet to comment. Shares of Spotify pared gains in after-hours trading, almost unchanged at the close. Shares of Warner Music Group rose 4%.