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With a billion users, TikTok has rapidly become one of the most important players in the music industry, and now has its sights set on revolutionising the way artists are discovered and get paid.

Tolga Akmen | Afp | Getty Images

TikTok recently launched a new rival to music-streaming giants Spotify and Apple Music, as the popular short video app seeks new avenues for growth.

TikTok Music said on Wednesday that it will be testing its service in Australia, Mexico and Singapore. That announcement comes shortly after it launched in Indonesia and Brazil earlier this month.

Last week, TikTok also announced an expanded licensing agreement with Warner Music Group, as it looks to grow its music content library. Parent company ByteDance also recently scrapped the free tier of Resso, another music-streaming service it owns.

While these efforts are in their early days, analysts said TikTok has key advantages that other music-streaming entrants do not possess and that could help it seize market share.

“There’s already this large installed base of users which TikTok can convert into paying TikTok Music subscribers – with a relatively low customer acquisition cost,” said Jonathan Woo, senior research analyst at Phillip Securities Research.

According to DataReportal, Indonesia and Brazil are TikTok’s second- and third-largest markets, behind only the U.S., with 113 million and 84.1 million active TikTok users aged 18 years and above, respectively. Meanwhile, Mexico is TikTok’s fourth-largest market with 62.4 million TikTok users.

There really is not that much incentive to switch services for users already on Spotify or Apple Music as brand loyalty amongst users on these premium incumbent platforms is also very strong.

Jonathan Woo

Senior analyst, Phillip Securities Research

“TikTok Music will make it easy for [users] to save, download and share their favorite viral tracks from TikTok,” Ole Obermann, global head of music business development for TikTok, said during the Indonesia and Brazil launch.

TikTok is the second-most common source of music discovery for 16 to 19 year olds, behind YouTube, according to data from MIDiA Research shared with CNBC. MiDIA Research is a U.K.-based research firm covering entertainment and media.

If you are already in the ecosystem, and you are using TikTok that much, you might be willing to switch over.

Tatiana Cirisano

Music analyst, MiDIA Research

In MiDIA’s fourth-quarter consumer survey, 48% of respondents said YouTube is among their main places for discovering music, while 41% pointed to TikTok. The survey fielded 9,000 respondents across the U.S., U.K., Australia, Canada, Germany, France, Sweden, South Korea and Brazil.

“A lot of times people hear lots of different songs on TikTok, but they don’t make the jump to actually listen to it elsewhere or learn more about the artist,” said Tatiana Cirisano, music analyst at MiDIA Research.

“The powerful potential for TikTok Music is that it could close that gap,” said Cirisano.

Some market share

The music streaming market is currently dominated by Swedish giant Spotify and Apple Music.

Spotify commands almost 31% of the global streaming market with Apple Music following with 13.7%, according to the International Music Summit Business Report 2023.

But Cirisano said that heavy TikTok users could convert into TikTok Music users if they are using other services such as Spotify. “If you’re already in the ecosystem, and you’re using TikTok that much, you might be willing to switch over,” said Cirisano.

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Still, Woo of Phillip Securities Research said TikTok Music presents a “low risk” for Spotify and Apple Music.

“I do think that it would be quite difficult to surpass Spotify and Apple Music in terms of market share given their incumbency, but TikTok Music could definitely eat into some of it,” said Woo.

“There really is not that much incentive to switch services for users already on Spotify or Apple Music as brand loyalty amongst users on these premium incumbent platforms is also very strong,” said Woo.

He added that monthly subscription prices for all three services are expected to “be at similar price points.” In Indonesia, Spotify Premium costs 54,990 Indonesian Rupiah ($3.66) monthly while iOS users pay 49,000 Indonesia Rupiah ($3.26) a month for TikTok Music.

What is ByteDance?

“As a consumer, why should I pay a monthly fee to listen on TikTok Music, when I can listen for free on Spotify, albeit with advertisements?”

TikTok declined to comment on TikTok Music’s expansion plans. Spotify and Apple Music did not respond to CNBC’s requests for comment.

Boost growth?

TikTok has been looking for growth outside the U.S., where it faces mounting political headwinds. Its flagship app was banned in Montana, the first state to do so, as well as India. TikTok’s CEO previously said the company will pour “billions of dollars” into Southeast Asia over the next few years.

The company’s e-commerce marketplace TikTok Shop has been aggressively expanding into Southeast Asia, competing against Sea‘s Shopee and Alibaba‘s Lazada. Those e-commerce efforts also include livestream shopping.

TikTok in July said livestream shopping isn’t the only area it is looking into when asked if it is the “end destination” for TikTok’s areas of expansion.

“Shoppertainment is not the only destination, but it is definitely one of the main areas, especially in Asia Pacific that we are leaning in heavily into,” Shant Oknayan, head of business across Asia Pacific, the Middle East and Africa & Eastern Europe at TikTok, said during a summit in Jakarta earlier this month.

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Instagram now has 3 billion monthly active users

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Instagram now has 3 billion monthly active users

Instagram has installed a new privacy setting which will default all new and existing underage accounts to an automatic private mode.

Brandon Bell | Getty Images

Instagram now has 3 billion monthly active users, Meta CEO Mark Zuckerberg said on his Instagram account on Wednesday.

“What an incredible community we’ve built here,” Zuckerberg posted on his Instagram channel.

The figure is a major milestone for the photo-sharing app, which the social media company acquired in 2012 for $1 billion.

Meta last disclosed Instagram’s user figures in October 2022 when Zuckerberg said during an earnings call that the app had crossed 2 billion monthly users.

Meta said in April 2024 that it would no longer disclose the monthly and daily active user numbers for Facebook and its sibling apps on a quarterly basis. Since then, Meta has been reporting each quarter the number of daily active people using its family apps. That figure reached 3.48 billion, the company said in July, topping analysts’ estimates of 3.45 billion.

With 3 billion monthly users, Instagram joins the ranks of the Facebook and WhatsApp platforms.

Zuckerberg in January said that the Facebook app “is used by more than 3 billion monthly actives.” In April, Zuckerberg told analysts that WhatsApp had “more than 3 billion monthly actives.”

WATCH: Meta unveils new AI glasses lineup.

Meta unveils new AI glasses lineup

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Chinese giant Xiaomi challenges Samsung with new smartphones and appliances

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Chinese giant Xiaomi challenges Samsung with new smartphones and appliances

Xiaomi launched the Xiaomi 15T series of smartphones as it continues its global expansion.

Xiaomi

MUNICH — Xiaomi on Wednesday made the international debut of a slew of new devices and appliances with its smartphones at the center, as the Chinese tech giant sets out to directly challenge Samsung.

The Beijing-headquartered company took the wraps off of the Xiaomi 15T series comprising of two smartphones — the Xiaomi 15T and Xiaomi 15T Pro — during a launch event in Munich.

The devices, priced at 649 euros ($766) and 799 euros, respectively, continue Xiaomi’s strategy of bringing phones with the latest specs to the market at a competitive price.

Xiaomi talked up the triple-camera system, large 6.83-inch display and big battery power, as it looks to position the devices as a potential contender to Samsung’s mid-range A series and top-end S Series of smartphones.

For comparison, Samsung’s S25 starts at 799 euros, while its top-end device, the S25 Ultra, starts at 1,249 euros in Germany.

“The 15T is basically an affordable flagship with high-end features but priced half a notch down from the top tier premium devices,” Bryan Ma, vice president of devices research at International Data Corporation, told CNBC by email.

Over the past few years, Xiaomi has expanded its geographical footprint and offerings to include everything from washing machines to electric cars.

In Europe, Xiaomi has cemented itself as the third largest smartphone player by market share, behind Samsung and Apple, through a mix of high-end and mid-tier devices that have offered a stiff challenge to the two giants.

Xiaomi launched its more expensive Xiaomi 15 phones internationally earlier this year. In China, it is gearing up for the unveiling of its 17 series of devices, which will be its flagship.

“Xiaomi 15T is another important step for Xiaomi in its premiumization strategy, particularly trying to capture the slightly more budget-sensitive, spec-focused buyers that still opt for a high-end device, Runar Bjorhovde, analyst at Canalys said.

“One of Xiaomi’s major strategic focuses in taking on the high-end.”

But the company has bigger ambitions. On Wednesday, Xiaomi announced the global launch of it Mijia brand of home appliances, which include a refrigerator, washing machine and air conditioner.

It’s a move right out of Samsung’s playbook. The South Korean technology giant sells products across the world spanning from appliances to smartphones and TVs.

“Xiaomi naturally puts the pressure on any competitor in the sectors that it enters given its operating model of aggressively priced yet good quality products,” Ma said.

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Trump’s H-1B visa changes could ‘kneecap startups,’ drive talent elsewhere, experts say

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Trump's H-1B visa changes could 'kneecap startups,' drive talent elsewhere, experts say

President Donald Trump takes a question from a reporter before signing executive orders in the Oval Office at the White House on September 19, 2025 in Washington, DC.

Andrew Harnik | Getty Images

It’s been a chaotic few days for the tech sector, and industry executives and experts are still assessing how U.S. President Donald Trump’s latest immigration crackdown could shape the future of their workforces. 

The Trump administration sparked widespread panic Friday after announcing employers will pay a new $100,000 fee for H-1B visas, which are temporary work visas granted to highly skilled foreign professionals. These visas have underpinned the U.S. tech workforce for decades.

Some tech executives, including Netflix co-founder Reed Hastings and OpenAI CEO Sam Altman, have lauded the changes to the H-1B program, but experts told CNBC that the Trump administration’s changes could prevent some tech companies — namely startups — from securing top foreign talent. These experts said the changes also run the risk of driving top talent toward other countries.

“The short of it is, it would be a disaster for America, for American companies, American competitiveness, American innovation,” said Exequiel Hernandez, an associate professor at the Wharton School of the University of Pennsylvania.

Tech’s reliance on the H-1B program

The current annual cap for H-1B visas is at 65,000, along with 20,000 additional visas for foreign professionals with advanced degrees.

In fiscal 2025, Amazon, Microsoft, Meta, Apple and Google are among the top 10 companies that employ the most H-1B holders. Prominent tech executives like Microsoft CEO Satya Nadella, Google CEO Sundar Pichai and Tesla CEO Elon Musk were H-1B recipients earlier in their careers.

As tech companies scrambled to respond before Trump’s proclamation went into effect at 12:01 a.m. ET on Sunday, the White House quelled some concerns on Saturday by clarifying that the fee is not annual and would only apply to new visas, not renewals for current visa holders.

More changes could be on the horizon. 

The Trump administration teased a proposed rule on Tuesday that said H-1B recipients should be selected through a weighted process instead of a random one. The weighted process would take place when the number of requests for visas exceeds the limit of available spots, and it would be based on wage levels, the proposal said.

The proposed rule will officially publish in the Federal Register on Wednesday, and it’s still subject to change after the administration reviews initial public feedback.

Hastings called the Trump administration’s $100,000 fee a “great solution,” in a post on X on Sunday.

“It will mean H1-B is used just for very high value jobs, which will mean no lottery needed, and more certainty for those jobs,” he wrote.

OpenAI’s Altman expressed support for the updates during an interview with CNBC’s Jon Fortt on Monday.

“We need to get the smartest people in the country, and streamlining that process and also sort of outlining financial incentives seems good to me,” Altman said.

‘It kneecaps startups’

A picture shows logos of the Big Tech companies named GAFAM, for Google, Apple, Facebook, Amazon and Microsoft, on June 2, 2023.

Sebastien Bozon | AFP | Getty Images

China and other competitors loom large

U.S. tech companies big and small are fiercely competing with one another – and the rest of the world – as they race to develop the most advanced AI models and applications. Organizations like Meta have shelled out billions of dollars to recruit top AI talent in an effort to try and gain an edge.  

The Trump administration’s changes to the H-1B program could complicate similar recruiting efforts. 

“What this does is that it gives our competitors, other countries, places like Asia, Canada, Europe, they can then attract these employees to create new innovations,” said Steven Hubbard, a data scientist at the American Immigration Council, which is a nonprofit for immigration advocacy and research. 

One big competitor in the war for talent is China. The world’s second-largest economy has long fought against the U.S. for tech dominance, and more recently the AI race.

Earlier this year, Chinese AI firm DeepSeek rattled global markets after claiming to create a large language chatbot that outperformed competitors at a fraction of the cost. The news raised questions over the significant sums that American tech companies are shelling out on AI.

Some experts worry that visa changes could deal a victory into China’s hands, sending top talent overseas. The move may also deter foreign students from attending university in the U.S. as uncertainty hangs over their post-graduation job prospects.

“Those students are going to look at this environment and stay home,” said Greg Morrisett, vice provost at Cornell Tech. “It’s giving a leg up to both China and India in terms of feeding their startup ecosystems.”

For Bradley Tusk, the CEO of Tusk Venture Partners, the changes to the H-1B program are simply “terrible.” American companies have to have access to top talent in order to compete at the highest levels, he said.  

“America’s competitive advantage has always been the ability to attract the best talent from around the world,” Tusk said. “To limit our ability to recruit and compete is illogical.”

WATCH: JPMorgan CEO Jamie Dimon speaks out on H-1B visa changes

JPMorgan CEO Jamie Dimon speaks out on H-1B visa changes

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