Spotify (NYSE:TikTok) has a few competitors, but TikTok doesn’t appear to be one of them. Most take the social media platform and even the parent company ByteDance only true for the social media area. However, there is more to the group as a whole.
For example, the streaming service Resso. Exactly that is now receiving more attention, which should definitely lead to a hardening market situation among music streaming competitors. Foolish Spotify investors should therefore tip their spoons.
Spotify: Competition from ByteDance and TikTok!
More specifically, ByteDance plans to give streaming service Resso more exposure and also a stronger foundation. To this end, they are already negotiating with music labels to take the content to a new level. That could significantly expand the range accordingly.
Resso could certainly benefit from the success of TikTok. After all, the social media platform is also known for the fact that songs go viral here too. If the management can simultaneously provide its own streaming service for listening to the content and the necessary rights, that would be a possible competitive advantage. Ultimately, the management is already playing off its own ecosystem.
ByteDance also has a good market position among the younger generations. Spotify can also compete with this in terms of quality. The key question is whether the well-known streaming group has to fear the competition.
I’m not too worried
ByteDance is certainly a name that’s garnering a lot of popularity. However, there is likely to be a focus on TikTok itself. The streaming service can of course build up a certain range and also create a competitive offer. Spotify should definitely keep an eye on this. Nevertheless, I also see a strong, intact ecosystem in the top dog.
Of course, music is an important element of Spotify. However, the management is gearing up, especially in the area of podcasts and exclusive content, in order to build up more reach. This is something that moves away from the divided market. In addition, the management of the streaming top dog should continue to ensure that it gets the latest content from the music labels.
That’s why I don’t really see any reason why Spotify has to hide from the new competition. No, but your own offer is also strong, well-known and, above all, well-established. It is also known that sooner or later there would be more competition. And a challenge that sooner or later has to be faced.
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Vincent owns shares of Spotify. The Motley Fool owns shares of and recommends Spotify.
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