“Resso’s Final Note: How ByteDance’s Music Streaming Dream Was Silenced by Regulatory Crackdown in India”

Startup Name: Resso (India)

Founded: 2020

Closed On: January 31, 2024

Business Model:
Resso was a music-streaming app launched by ByteDance, the parent company of TikTok. It operated as a premium music streaming service, offering users access to a vast library of songs with features such as personalized playlists and social sharing. Resso initially offered both free and paid tiers, but in May 2023, it became a subscription-only service in India, aiming to improve user experience and increase opportunities for music rightsholders and artists.

Reason for Closure:
Resso shut down its operations in India due to a government crackdown and regulatory scrutiny. The Indian government ordered the app’s removal from the Google Play Store and Apple App Store in December 2023, citing concerns over the company’s data handling practices and the use of proprietary algorithms to process Indian users’ data. ByteDance chose to exit the Indian market rather than respond to government queries, attributing the closure to “local market conditions.” Users were offered refunds for remaining subscription fees. Resso’s exit marked the end of ByteDance’s last major consumer-facing product in India after previous bans on TikTok and other apps.

Learnings to Be Avoided by New Startups:

• Prioritize Regulatory Compliance: Especially in sensitive sectors like data and media, ensure full compliance with local laws and be proactive in addressing government concerns.

• Diversify Market Risk: Avoid overreliance on a single market, especially one with a volatile regulatory environment.

• Build Transparent Data Practices: Clearly communicate and document how user data is managed to build trust with regulators and users.

• Prepare for Geopolitical Risks: International startups must be ready for sudden policy changes and have contingency plans for market exits.

• Monetization Alone Isn’t Enough: Even with a large user base and premium offerings, regulatory hurdles can override business fundamentals.

Summary Table

Resso’s shutdown in India highlights the critical importance of regulatory alignment and risk management for digital platforms operating in sensitive and fast-changing markets.