Bytedance, the company behind popular social media apps TikTok and Lemon8, is making its music streaming service, Resso, a premium-only service. The announcement was made to users on the app and website, stating that the change will take place on May 11, 2023. The move is aimed at improving the service for users while increasing benefits for artists and rightsholders.
Ole Obermann, Bytedance’s global head of music, stated that the change will lead to a better user experience for music fans while increasing opportunities for artists. By subscribing to the service, users can access ad-free listening, the option to download songs for offline listening, lyrics generation for sharing, and social features like duo playlists.
Resso, which has been downloaded over 250 million times, currently operates in India, Brazil, and Indonesia. India has the most active users, while Brazil represents 73% of paid users for the music streaming app. The subscription tier costs R$16.90 ($3.38) per month in Brazil, Rp 49,000 ($3.34) per month in Indonesia, and ₹119 ($1.46) per month in India. In comparison, Spotify premium subscriptions cost R$19.90 ($3.99) per month in Brazil, Rp 49,000 ($3.75) in Indonesia and ₹119 ($1.46) per month in India.
Resso faced challenges in maintaining its song catalog on its service as Sony Music pulled its catalog last year. In Q12023, the Bytedance-owned app was downloaded 13.5 million times, a 47% year-on-year drop, after a peak of nearly 100 million downloads in 2021.
Bytedance had previously hinted at launching TikTok Music in multiple markets, but the company has removed many references to it from the Resso app. The move to make Resso a premium-only service may be due to current economic conditions, as seen in India where Tencent-backed Gaana shut down its free tier last year in a similar move. The music streaming industry is also facing profitability issues, with major players like Spotify struggling to make a profit.
Bytedance’s decision to make Resso a premium-only service is aimed at improving the user experience for music fans while increasing benefits for artists and rightsholders. Despite facing challenges, Resso has achieved considerable success in its operating markets, and this move could help the service sustain its growth in the long term.
