Tencent’s latest report shows paying users are growing steadily converting more of their almost 700 million users than last year to pay for music.
Chinese music streaming company Tencent Music are behind some of China’s most popular services; QQ Music, Kugou, and Kuwo. Their latest quarterly financial report shows that the huge services are continuing to grow even larger with an emphasis on converting their many users into paying ones.
The report shows that out of their 657 million monthly active users they now have 42.7 million paying users. That’s a 50% increase in paying users from last year and a conversion rate of 6.5% of their users paying for music, which was 4.3% a year ago.
Their overall revenues showed even more impressive growth, up 70% on this time last year. The music company is quickly becoming a huge player in music streaming and has reported $170 billion (converted from 1.21 billion Renminbi) from music subscriptions far succeeding their first quarter revenues from 2019 which stood at RMB710 million.
Overall revenues for music including those made from free listners totalled $289 million for the first quarter of 2020. That’s a 27.4% increase for their overall revenues year-on-year though the majority of their revenue came outside of their impressive music revenues from ‘social entertainment’ including live apps and karaoke features within their apps.