With over 800 million users, China’s answer to Spotify is ready to raise up to US$1.2 billion from its IPO.
Tencent, in a filing to the US SEC today, spilled the deets on its music-streaming wing, Tencent Music Entertainment Group, as it edges close to listing on the New York Stock Exchange.
Here’s the lowdown:
- Made up of four sites: QQ Music, Kugou, Kuwo, WeSing
- They’re China’s top four music apps, with a collective 800 million monthly active users, according to iResearch data
- 24.9 million paying subscribers
- Subscription rate is “still very low compared to online games and video services in China and online music services globally, indicating significant growth potential,” Tencent says
- 20 million-plus tracks
- Over 200 licensing deals with international and domestic record labels
- Average user spends 70 minutes in the app each day
- Apps include karaoke and livestreaming video
- QQ Music was the first to launch, in 2003
Inside’s QQ Music app / Image credit: Tech in Asia
The latest financials (for nine months ended September 30):
- US$2 billion revenue
- US$438 million profit
- Makes money from virtual gift sales, premium memberships, and ads
Fun fact: Music makes up 30 percent of Tencent’s overall revenue so far this year.
And remember that Tencent took a stake in Spotify this time last year, with Spotify in turn nabbing a slice of Tencent Music. As revealed in today’s regulatory filing, Tencent owns 2.5 percent of Spotify.
China’s music market:
- Worth US$4.8 billion in revenue in 2017
- Growing to US$31.4 billion in 2023, projects iResearch
Aside from Tencent’s quartet of apps, tech giants Alibaba, Baidu, and NetEase have their own music-streaming services. No major overseas services are available in China.
Editing by Judith Balea and Eileen C. Ang
(And yes, we’re serious about ethics and transparency. More information here.)
Stay updated on the go with our mobile app.
Get latest insights with smoother, more personalized experience through TIA mobile app.
