Streaming is music to Tencent earsBusiness | Reuters 15 May 2019
Tencent Music Entertainment, a subsidiary of Tencent (0700) and listed in US market, reported that the net profit of the first quarter increased 17.4 percent to 987 million yuan.
"As our users increasingly consume music content through streaming services, we are riding on this trend to gradually transition into a pay-for-streaming model over the coming years," chief executive officer Cussion Pang said in a statement yesterday.
Tencent Music expects its decision to shift more music behind a paywall, including music from popular Taiwanese singer Jay Chou, to bring in more revenue generated.
While pay-for-streaming accounts for a very small percentage of Tencent Music's total offering, the company is gradually adding to the list, chief strategy officer Tony Yip said on a post-earnings conference call.
"It will take some time to promote a broader user adoption. We are seeing encouraging results so far, which gives us confidence this is the right strategy," Yip said.