Key Points:

• TikTok exits the music streaming business, creating opportunities for competitors.
• Spotify likely benefits most from TikTok’s departure.
• TikTok’s younger user base may not have been interested in paid music streaming.
• Forget Disney, instead look at ‘The Next Nvidia’ as the stock to propel your portfolio higher in 2025

Watch the Video

Edited Video Transcript:

[00:00:00] Douglas A. McIntyre: TikTok, which at this point could be the most, uh, widely used social media network. They don’t put out exact numbers as people know they’re owned by a Chinese company. So maybe they don’t, maybe they don’t want to put out exactly. No, but a massive business, certainly, uh, globally hundreds of millions of users in the United States, many tens of millions.

[00:00:24] Douglas A. McIntyre: Yeah. They have decided to get out of a business that would appear to be attractive for them. Cause it’s basically video sharing. TikTok is they had a music streaming business because of their capacity. People who use TikTok, you would think, wow, that would be a great business, but they have just dropped out.

[00:00:44] Douglas A. McIntyre: And the question is who’s the winner if they are the loser?

[00:00:48] Lee Jackson: Yeah. Well, and it’s interesting, but again, you got to remember a lot of the TikTok users are the young. and many are teenagers. A don’t know how many teena But, um, I thought it was because they went, they w heavy into this just two

[00:01:11] Lee Jackson: Music and probably most importantly to Spotify. Cause apparently I read that you can take your, your manufactured lists and your manufactured, uh, music that you have saved and you can transfer that directly to a Spotify or to an Apple music. And one would think that Spotify will say, well, okay, well, look, we’ll give you a deal to come over because Spotify is actually finally starting to get close to making consistent money.

[00:01:38] Lee Jackson: And it’s, it is a good service for the price. And, but the mere fact that they bailed after two years indicates that the demographic that supports TikTok clearly are not the people that are willing to pay, you know, 18 a month for music streaming.

[00:01:54] Douglas A. McIntyre: I think that’s part of it. I think the other part of it is, is that.

[00:01:58] Douglas A. McIntyre: The music streaming business is crowded. People

[00:02:01] Lee Jackson: very,

[00:02:02] Douglas A. McIntyre: don’t think about that. They think that video streaming is crowded. People need to remember that Amazon offers music. I mean, a lot of these big companies that have video streaming or in the tech industry, they offer, uh, audio streaming podcasts, music streaming.

[00:02:23] Douglas A. McIntyre: So I think it is very good for Spotify particularly, but Spotify is not on its own, it’s not as if. This eliminates the competition. It just eliminates one important competitor.

[00:02:36] Lee Jackson: Yeah. And, and again, and like you said, Doug, uh, Google has a piece, they have a piece of it cause they have YouTube and YouTube has a ton of streaming music and you can build, you know, music lists on YouTube as well.

[00:02:50] Lee Jackson: So yeah, I, it is an extremely crowded arena. You would think again, TikTok would have had an advantage, but it’s not. Again, you know, does a 17 or 16-year-old kid that’s listening to Taylor Swift all the time really stream, you know, vast amounts of music?

[00:03:08] Douglas A. McIntyre: My, my guess is, uh, I don’t know anybody that age, so I can’t use that question , but I do, but not well,

[00:03:16] Douglas A. McIntyre: So listen, if, if I’m an investor right now, I would look at Spotify. Yeah, I think so. You know, with an Apple. Even if they pick up some of these people, Apple’s so huge, it doesn’t move the needle. What was it? No, not at all. And

[00:03:30] Lee Jackson: it, it, it is Spotify’s bread and butter. And I think that, yeah, if there’s any place that’s going to get a distinct advantage immediately, and you would think again, the tick tock will, you know, when these lists are offered off, they will be easily transferred through the internet and easily plugged into your account and Spotify and it, you know, everything will work pretty, pretty quick.

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