Spotify’s second quarter revenue increased 11% year-over-year to $3.51bn, which failed to meet a predicted $3.56bn, according to Bloomberg.
For its third quarter, the company predicts a total profit of $3.66bn, falling below the $3.77bn analysts had previously predicted, CNBC reported.
The lower-than-expected results signal an opportunity for music-streaming rivals to step in.
TikTok has launched a new subscription-based music streaming service TikTok Music, which is currently available in its beta form.
The social media company’s large user base gives it a huge advantage over Spotify and Apple Music and could see the TikTok capture significant market share.
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TikTok has launched its new music platform in Indonesia and Brazil, both of which have the second and third largest TikTok user base, with 113 million and 84.1 million users respectfully, according to digital music distributor RouteNote. TikTok Music has further launched in Australia, Mexico and Singapore.
“TikTok Music is a new kind of music service that combines the power of music discovery on TikTok with a music streaming service offering millions of tracks from thousands of artists,” a company spokesperson said.
Additionally, in May 2023, TikTok announced the launch of an online space for artists to showcase their new songs and for “fans to discover their next favorite track,”
The “#NewMusic hub” is aimed at providing a platform for users to discover new music and for “emerging and established artists to grow their fanbases and connect with their audience,” TikTok said.