ByteDance is planning on entering the music industry as the company prepares for an IPO.
Tech Planet has reported that ByteDance has been building a music division this year that is concentrating on four different music businesses. ByteDance’s entry into the market will increase the competition within the music streaming industry, which is currently dominated by Tencent Music Entertainment Group and NetEase Cloud Music, following the closure of Xiami Music. Analysts predicted that ByteDance would inevitably enter China’s music streaming market due to the integration of music in short videos on Douyin, the Chinese counterpart of TikTok.
Through the ByteDance-owned businesses of Douyin, Douyin Huoshan and Xigua (Watermelon Video), the company’s music business will integrate music broadcasting, and publicity and copyright operation.
This move comes ahead of rumours that ByteDance is preparing to privately list on the Hong Kong stock exchange in the second quarter. Based on current share prices, the company could value at over $300 billion. ByteDance may also IPO some of its domestic and international businesses, including Douyin, news aggregator Toutiao, and Xigua.