Date of Update: 1/27/2021

Tencent Music

Ticker: TME

Theme: Audio

Country: China

Sector: Media & Entertainment

Universe: Roundhill Streaming Universe

This is not a recommendation to buy or sell securities.

 

Company Description:

Tencent Music is the market leader in China for music streaming, with over 646 million MAUs across its offerings.1 These include the three most popular music apps in China – QQ Music, Kugou, and Kuwo Music. The company is structured as a joint venture between Tencent and Spotify, each of which own single digit stakes in each other due to a 2017 stock swap.

3 Company Facts:

  • Tencent Music had 51.7 million paid subscribers in Q3 2020, a 46% YoY increase from Q3 2019. 2
  • The company reported $4.0bn in revenue for the 12 months ending 9/30/20, which is a mix of paid subscribers and free ad-supported users.
  • KuGou Live and Kuwo Live are rapidly growing livestreaming services that let users watch live concerts and performances.

3 Industry Facts:

  • China entered the top ten globally in terms of music market size in 2019, amid a societal digital transformation.3
  • Most music streaming platforms utilize a “freemium” model, which consists of a subscription tier and a free tier. The latter is usually supported by ads and may have restrictions on listening.
  • Streaming services accounted for nearly 80% of all music revenue in 2019.4

3 Key Metrics:

  • Daily/Monthly Active Users
  • Number of paid subscribers
  • Music royalty costs

This is not a recommendation to buy or sell securities.

Notable Brands:

QQ Music
QQ Music
KuGou
KuGou
Kuwo Music
Kuwo Music

Source(s):