Tencent Music Profits Soar as Paid Streaming Subscriptions Increase

by info.vocallyrics@gmail.com

net profit Tencent Music EntertainmentChina’s largest digital music operation grew 89% to RMB 1.15 billion ($167 million) in the first quarter of the new year, while its revenue increased only 5% to RMB 7.0 billion ($1.02 billion). ) reached.

Backed by Chinese tech and entertainment giant Tencent, with listings on the New York Stock Exchange and Hong Kong, the group controls major equity stakes in Spotify and (in a consortium with Tencent) Universal Music Group.

Their own music operations are broadly divided into two clusters: mass-market music streaming with paid and free tiers; and “social entertainment”, including karaoke and other derivative products.

The company said that for the first time, revenues from online streaming are catching up with social music. Revenues from online music services increased 34% year over year to RMB 3.50 billion ($510 million). Revenues from social entertainment services and others fell 13% year-over-year to RMB 3.50 billion ($510 million).

The number of users paying for online music reached 94.4 million, up 18% from the previous year, bringing the online music payment rate to a record 15.9%. Average revenue per paying user rose to RMB 9.2 per month, marking fourth consecutive quarter growth.

The company said the decline in social music revenues has led to a new focus on competitiveness through continued product innovation and initiatives in social entertainment services such as audio live streaming, real-time interactive experiences and international expansion.

“We started 2023 with great momentum as our strategic emphasis on quality growth led to strong growth in our online music revenues. We are pleased to see that the revenue size of our online music services catches up with social entertainment services for the first time. This shows that our long-term commitment to developing a sustainable online music business model is starting to bear fruit. “Our overall revenues enjoyed healthy growth in the first quarter, while our focus on efficiency optimization also resulted in strong net profit growth,” said Cussion Pang, chairman of the board of Tencent Music Entertainment.

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