ByteDance, the internet company is now focusing on the market by introducing its music app called Resso and a productivity tool known as Lark. This move comes after TikTok and several other apps were banned in India. Resso has gained popularity with 125 million downloads, in India while Lark aims to streamline collaboration among users. ByteDances decision to shift its focus aligns with its strategy of adapting to environments and reducing dependence, on TikTok.
Three years after the Indian government banned ByteDance’s flagship short-video app TikTok, along with other apps like Helo and CapCut, the Chinese internet giant is leveraging its music streaming app Resso and the all-in-one productivity app Lark to make headway in the Indian market.
Resso, which operates not only in India but also in Brazil and Indonesia, has found a significant user base in India, with over 125 million downloads in the country, according to experts. Despite the removal and ban of some of their top apps, ByteDance, and other Chinese companies remain enthusiastic about the Indian market, as David Curry, data editor at Business of Apps, explains.
This renewed focus on India comes as ByteDance faces heightened scrutiny and the potential for bans in other major markets like the US and Europe. India, boasting nearly 800 million users, stands as the second-largest internet market globally, providing ample opportunities for app expansion. While Resso and Lark contributed less than 5% to ByteDance’s total revenues in 2022, they play a crucial role in the company’s future strategy of reducing dependency on TikTok and Douyin for revenue.
Lark, primarily a productivity tool, garners significant downloads in China, with over 10 million downloads on the Play Store. Offering features such as chat, scheduling, document management, video conferencing, and auto-translation within a single platform, Lark aims to streamline team communication and collaboration, with pricing starting at $12 per seat.
Interestingly, ByteDance appears to adopt a similar approach in global markets as it does in the US, striving to position itself as unobtrusive and secure. This strategy shift reflects their efforts to adapt to different regulatory landscapes.
In India, Resso has adopted a growth model with subscription plans starting at Rs 99 per month. Although India contributes a substantial user base, the average revenue per user (ARPU) lags behind that of Brazil. Despite this, ByteDance is committed to enhancing user experiences for music enthusiasts while supporting rights holders and artists through the transition to a premium-only service.
Ram Mishra, founder, and MD of Damroo, a regional music streaming app, highlights the flourishing music streaming market in India, driven by smartphone and internet penetration in tier II and III cities. With an average of 450 million daily music streams and a growing shift towards rural areas, there’s a clear opportunity to offer an alternative to video platforms in vernacular markets.
He also adds that revenue generated from music streaming, in 2022 amounted to Rs 2,200 crore. Out of this total 87% came from the domain. Mishra also mentioned that this particular segment is anticipated to experience a compound growth rate (CAGR) of 15% and is projected to reach Rs 3,300 crore by the year 2025.
India took the decision to prohibit TikTok and 300 other Chinese applications in a step, by step manner commencing from June 2020. This action was driven by concerns related to security. At that time TikTok had amassed over 200 million users, in India making it their largest international market. Following this development demands to ban TikTok have also emerged in parts of the world.
India’s ban on TikTok and other Chinese apps led to the rise of homegrown alternatives like ShareChat, MX Takatak, and Josh. Meta emerged as a significant beneficiary, launching Instagram Reels globally after a successful pilot in India, capitalizing on the absence of competition from the banned Chinese app.
Despite ByteDance’s efforts to return to India through partnerships with local companies, its attempts were unsuccessful, resulting in the closure of its India office. As ByteDance continues to navigate challenges in various markets, Resso and Lark remain integral to its evolving global strategy.
