Introduction
After launching its music streaming app Resso in India three years ago, ByteDance has decided to transition the service to a paid-only model. As of May 11, 2023, Resso will no longer offer free services, marking a significant shift in the company’s approach to music streaming.
Background
Resso currently operates in India, Brazil, and Indonesia, with over 250 million downloads on the app. According to analytics firm Sensor Tower, 2021 was the service’s biggest year, with nearly 100 million downloads. However, in Q12023, Resso saw a 47% drop in downloads, with only 13.5 million users.
Reasons Behind the Move
ByteDance’s Global Head of Music Business Development, Ole Obermann, stated that the move to a premium-only service will allow for better user experiences and increased opportunities for rightsholders and artists. "Resso’s move to a premium-only service will enable the development of a better user experience for music fans, while increasing benefits for artists," he said.
Benefits of Resso Premium
The paid subscription tier offers various benefits, including:
- Ad-free listening
- Option to download songs for offline listening
- Lyrics generation for sharing
- Social features like duo playlists
Resso’s pricing varies by region:
- In Brazil, the premium subscription costs R$16.90 ($3.38) per month.
- In Indonesia, the cost is Rp 49,000 ($3.34) per month.
- In India, the price is ₹119 ($1.46) per month.
For comparison, a Spotify premium subscription costs:
- R$19.90 ($3.99) per month in Brazil
- Rp 49,000 ($3.75) per month in Indonesia
- ₹119 ($1.46) per month in India
Challenges Faced by Resso
Resso has faced several challenges, including maintaining a strong portfolio of songs on its platform. Last year, Sony Music pulled its catalog from the service, which may have contributed to the decline in downloads.
Additionally, new trademarks and code in the Resso app suggested that ByteDance was preparing to launch TikTok Music in multiple markets. However, since then, many references to TikTok Music were removed from the app.
Expansion of Music Streaming Services
ByteDance’s decision to shift Resso to a paid-only model may be influenced by current economic conditions and the growing competition in the music streaming industry. In India, Tencent-backed Gaana shut down its free tier last year, and globally, major players like Spotify are struggling to make a profit.
Update on Ole Obermann’s Title
A correction was made to Ole Obermann’s title, which is now accurately stated as Global Head of Music Business Development at Bytedance.
Conclusion
Resso’s shift to a paid-only model marks a significant change in the company’s approach to music streaming. While it may face challenges and competition from established players like Spotify, Resso has a strong presence in India and Indonesia. As the music streaming market continues to evolve, it will be interesting to see how Resso adapts to changing user preferences and economic conditions.
