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Tencent Music Revenue Jumps 18% on Strong Subscription Growth: ‘Impressive Momentum’
Tencent Music Entertainment (TME) has reported a significant revenue increase of nearly 18%, reaching 8.44 billion RMB ($1.18 billion), driven by strong subscription growth, the company announced in its second-quarter earnings report.
The impressive momentum is largely attributed to Tencent Music’s premium audio subscription offering, SVIP membership program, which has shown substantial progress. Monthly average revenue per paying user (ARPPU) grew from 10.7 RMB ($1.49) to 11.7 RMB ($1.63), underscoring the effectiveness of this strategy.
It is worth noting that despite a decline in the total number of monthly average users by 3% to 551 million, the surge in subscribers to 124.4 million has fueled an impressive growth in music subscription revenue, which increased by 17% year-over-year to reach a staggering total of 4.38 billion RMB ($611 million).
Further expanding its musical offerings, Tencent Music has broadened its K-pop portfolio over the past year as China eased restrictions on Korean cultural content imports. To this end, partnerships have been forged with THEBLACKLABEL and H MUSIC, while collaborations were carried out with SM Entertainment to support Chinese-born actor and singer NCT CHENLE’s Chinese EP Lucid.
Speaking at a conference call discussing the results, Executive Chairman Cussion Pang commended Tencent Music’s progress, highlighting the company’s pursuit of building an all-inclusive music platform where creators can establish meaningful connections with their audience.
Source: www.billboard.com
