Amazon's New Karaoke Platform 'Twitch Sings' Could Cut into ByteDance's TikTok Market Dominance

While ByteDance executives battle it out with major labels, Amazon’s Twitch may very well steal away TikTok’s core audience.

According to a report published earlier this week, Chinese conglomerate ByteDance – parent company TikTok – in stalled licensing negotiation talks with major labels.

As the conglomerate’s valuation now stands at $76 billion, the Big 3 – Warner, Sony, and Universal Music – have demanded more money for songs played on TikTok and its Chinese counterpart, Douyin.  They’ve asked the company for hundreds millions dollars in ‘guaranteed money.’

Now, as talks continue to make little progress, and with ByteDance set to launch its own streaming music service a major competitor has encroached on the conglomerate’s primary market.

Twitch to the rescue?

In negotiations with the Big 3, ByteDance, for the most part, has agreed to pay more.  Yet, downplaying the impact its service, the company refuses to shell out the ‘guaranteed money.’

With a few weeks left to go, should the talks fail, the major labels will promptly remove their catalogs from the service.  This would force ByteDance to take a drastic decision.  Either the company will take down existing and new videos on both services, or prevent users from uploading videos with songs.

This would ultimately lead to diminished popularity, and serious problems for both TikTok and Douyin.

Amazon-owned game-streaming service Twitch has now publicly launched its first game.  Dubbed ‘Twitch Sings,’ the game invites users into an interactive karaoke-style experience designed primarily for live streaming.  Players can sing thousands songs alone or participate in duets with other gamers.

Users also have the option singing in front a camera or through an animated avatar.  Like TikTok, Twitch Sings viewers can request songs, cheer with emotes to activate light shows and virtual ovations, and fer silly challenges, including singing like a cat.

Speaking about the game, Joel Wade, Executive Producer Twitch Sings, explained,

Twitch Sings unites the fun and energy being at a live show with the boundless creativity streamers to make an amazing shared interactive performance.

Many games are made better on Twitch, but we believe there’s a huge opportunity for those that are designed with streaming and audience participation at their core.

The game remains part Amazon’s strategy to branch its live streaming platform out gaming and into more lucrative markets.  The e-commerce giant first purchased Twitch for $1.1 billion in 2014.  Currently, the live streaming platform has over 2.2 million creators and 15 million daily unique visitors.

Twitch makes money from selling ads, fering premium ad-free membership plans, partner fees from broadcasters, and paid ‘cheers’ – live donations – from viewers.

Whether or not Twitch Sings can successfully cut into TikTok and Douyin’s market remains to be seen.


Featured image by Amazon/Twitch.