Tencent Music Entertainment runs China’s biggest music platforms, QQ Music, Kugou and WeSing, and only face competition from one other platform NetEase — the two giants form the duopoly that currently reign over China’s rapidly growing music market.
It’s the strategic growth of their user base and the evolution of interactivity, and it’s not just music revenue that they’re banking on. Although TME have put an enormous effort into what they call ‘long-form audio’ — podcasts and audiobooks, across it’s platforms, the bulk of the revenue from platform users comes from their apps like WeSing which is an online stage for singing competitions. This ‘social entertainment services sector’ alone generated $2.26bn in 2019.
TME also trades on the New York Stock Exchange, generating an operating profit of $664m. As the company’s Chief Strategy Office, Tony Yip, added, “we concluded 2019 with many accomplishments, one of which was our significantly improved promotional capabilities, which not only leverage TME’s own platform but also through cooperation with external channels.
[via Music Business Week, Image via Bloomberg]