Unexpectedly Gone
Surprisingly, the popular music streaming service Resso announced it will leave Indonesia and Brazil by 2024. Many industry watchers and users are asking what was the behind this decision.
Intense Competitive Environment
ByteDance launched Resso to provide unique features that integrated with social media. However, the company faced stiff competition from Spotify and Apple Music, which have been dominating these markets for years now. Despite its innovative approach, which emphasizes social sharing and personalized playlists, Resso failed to gain much of the market share.
Economic reasons
Economic reasons also played a part in their exit strategy. Consumer spending power is the affected by fluctuations in the economies of Indonesia and Brazil. Rising costs of maintaining platforms that can remain competitive and creating localized content could have also put a strain on the company financially. Moreover, regulatory issues and market dynamics might have complicated matters for Resso.
Business Impact & Future Outlook
The departure of Resso’s Departure is one big the event that shows how new entrants struggle in very competitive markets characterized by many differences. While leaving an opening for domestic clients who understood what made it different from others, its retreat also the shows how important adaptability and understanding market trends are in the digital entertainment space.
As the music streaming industry evolves, stakeholders will be watching closely to see how this shift affects the broader landscape and what new opportunities may arise for other players in Indonesia and Brazil.