Tencent Music Entertainment Group is a major player in the global music industry. It was founded in 1998 and is headquartered in Shenzhen, China.
The company has a vast music library with over 20 million songs, making it one of the largest music collections in the world. This extensive library is a result of strategic partnerships with major record labels and independent artists.
Tencent Music's music streaming services have gained immense popularity in China, with over 800 million monthly active users. This massive user base is a testament to the company's innovative approach to music streaming and its ability to cater to diverse musical tastes.
Services and Content
Tencent Music offers a wide range of services, including music streaming, online concerts, and karaoke.
With its vast music library, users can access millions of songs from various genres and artists.
The company's music streaming service, QQ Music, has over 600 million monthly active users.
Tencent Music also provides live streaming services, allowing artists to connect directly with their fans.
In addition to music streaming, the company hosts online concerts and events, featuring top artists and bands.
The platform's karaoke feature has become extremely popular, with users singing along to their favorite songs.
Tencent Music has also expanded its services to include online education and e-commerce platforms.
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Financial Performance
Tencent Music's revenues surged to RMB 8.44bn ($1.18bn) in Q2, a 26.4% year-on-year increase.
This growth is largely driven by the company's ability to convert listeners into paying users. Five years ago, less than 4.8% of its users paid, but now that's up to 22.5%.
TME's number of paying users jumped from 117 million a year ago to 124.4 million in Q2. This is a significant increase from the 31 million paying users the company had in Q2 2019.
Music subscriptions grew by 17.1% to RMB 4.38bn ($611m) in Q2, driven by the popularity of TME's superfan 'SVIP' tier. This tier has more than 15 million subscribers.
The SVIP tier is priced at five times the standard tier pricing, and its success is being closely watched by music companies in the west.
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TME Entertainment Shows Growth & Breakout Potential
TME Entertainment's growth is largely driven by its acquisition of China Music Corporation in 2016, which brought in a significant boost in revenue.
The company's focus on K-pop and other Asian music formats has paid off, with a 30% increase in revenue from these genres in 2020.
TME Entertainment's streaming service, QQ Music, has seen a significant surge in popularity, with over 600 million monthly active users.
The platform's ability to offer exclusive content has been a major draw for users, with over 100 million subscribers to its paid service.
TME Entertainment's strategic partnerships with major labels have helped it expand its music library and attract new users.
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Charts and Rankings
Tencent Music has four charts: The TME UNI Chart, TME Wave Chart, TME Korean Chart, and TME Physical Album Sales Chart.
The TME UNI Chart is determined by listeners, with two lists: Real-time List and Past List. The Real-time List shows the top 200 songs and updates every ten minutes.
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Eligible songs for the TME UNI Chart must be new songs within six weeks of their initial release on Tencent Music's platform and are not part of certain song types.
Songs are ranked based on streaming, social, and sales activity from registered accounts on various Tencent Music platforms.
The TME Wave Chart is a monthly ranking of the top songs in China, compiled based on scores and recommendations from over 250 music industry professionals.
The TME Korean Chart ranks the top Korean songs within China based on streaming and sales activity from various platforms, with a 50% weighting on streaming, 30% on sales, and 20% on social activities.
The TME Physical Album Sales Chart ranks physical record sales based on data from QQ Music and KuGou Music, with four lists: Weekly, Monthly, Annual, and Overall.
Here's a summary of the four charts:
Frequently Asked Questions
Who is Tencent Music owned by?
Tencent Music is owned by Tencent, a Chinese multinational conglomerate, with a significant majority stake of 52.5% and control of 92.6% of voting rights.
Is Tencent Music free?
Tencent Music offers a free trial, but after that, you'll need to subscribe to access premium features. Subscription unlocks offline music listening and playback
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