The company behind the viral video-sharing service are reportedly working on a new app called Resso, which is being tested in India and Indonesia following an initial launch in the countries six months ago, where it has already been downloaded by about 27,000 users across the iOS App Store and Google Play.
According to a report from Bloomberg, ByteDance has been quietly developing the app to challenge the likes of Spotify and Apple Music in countries where paid music services have yet to garner large audiences.
Michael Norris, research and strategy manager at Shanghai-based consultancy AgencyChina, told the publication: "The dilemma for all three companies is how to monetise a price-sensitive user base with low relative incomes. At the moment, it's a race for active users in the developing world. Commercial realities will be put aside, at least for now."
Resso is said to differ from Spotify by displaying real-time lyrics to songs, and letting users post comments, as well as generating music-accompanied GIFs and videos.
The app offers a monthly paid subscription service, which costs 119 rupees in India, making it the same price as Spotify.
The paid service allows users to download music and listen ad-free.
In a statement, a Resso representative said: "Resso is currently in a beta testing phase. We are optimistic about its long-term prospects but we are still very early in the process and only in a limited number of developing markets."