Tencent Music Entert...
NYSE:TME
$
18,58
$
$-0,14 (-0,75%)
18,58
$
$-0,14 (-0,75%)
End-of-day quote: 12/05/2025
Tencent Music Entertainment Group Stock Value
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Tencent Music Entertainment Group Company Info
EPS Growth 5Y
9,79%
Market Cap
$29,40 B
Long-Term Debt
$0,49 B
Annual earnings
03/17/2026
Dividend
$0,18
Dividend Yield
0,96%
Founded
Data Unavailable
Industry
Country
ISIN Number
Website
Analyst Price Target
$27,20
46.39%
Last Update: 12/06/2025
Analysts: 31
Highest Price Target $33,23
Average Price Target $27,20
Lowest Price Target $22,08
In the last five quarters, Tencent Music Entertainment Group’s Price Target has risen from $65,15 to $105,44 - a 61,84% increase. Nineteen analysts predict that Tencent Music Entertainment Group’s share price will increase in the coming year, reaching $27,20. This would represent an increase of 46,39%.
Top growth stocks in the communication services sector (5Y.)
What does Tencent Music Entertainment Group do?
Tencent Music Entertainment Group (TME) operates as an online music entertainment platform in China. The company is a subsidiary of Tencent Holdings Limited.
The company, its subsidiaries, its controlled structured entities (‘Variable interest entities’, or ‘VIE’) and their subsidiaries (‘Subsidiaries of VIEs’) are collectively referred to as the ‘Group’. The Group principally engages in operating online music entertainment platforms to provide music streaming, online karaoke and live streaming...
Tencent Music Entertainment Group (TME) operates as an online music entertainment platform in China. The company is a subsidiary of Tencent Holdings Limited.
The company, its subsidiaries, its controlled structured entities (‘Variable interest entities’, or ‘VIE’) and their subsidiaries (‘Subsidiaries of VIEs’) are collectively referred to as the ‘Group’. The Group principally engages in operating online music entertainment platforms to provide music streaming, online karaoke and live streaming services in the People’s Republic of China (‘PRC’). The company does not conduct any substantive operations of its own but conducts its primary business operations through its wholly-owned subsidiaries, VIEs and subsidiaries of VIEs in the PRC.
The company is pioneering the way people enjoy online music, and music-centric social entertainment services. Through technology-empowered product innovation, the company remains committed to offering users more diverse and engaging music experiences and providing greater support to musicians and partners in the journey of music creation, production, and distribution.
The company offers an all-in-one online entertainment experience for people to discover, listen, sing, watch, perform and socialize around music. To bring a more diversified experience to the company’s users, the company has also expanded its platform to offer long-form audio services.
The company helps promote a more sustainable music entertainment industry in China. The company’s scale, technology, commitment to copyright protection, and ability to promote original works have made the company a preferred partner for musicians and content owners.
TME Platform
The TME platform is an all-in-one music and audio entertainment destination that allows users to seamlessly engage with a broad range of music and audio content in many ways, including discovering, listening, singing, watching, performing and socializing. The company adopts a dual engine content-and-platform strategy to constantly enrich content offerings on the company’s platform, while empowering content creation and distribution and delivering a compelling user experience. Through the company’s vibrant community, technologies, and visual and interactive features, the company endeavors to enhance its user experience, engagement and retention.
Online music services, primarily the company’s QQ Music, Kugou Music and Kuwo Music, enable users to discover, enjoy and share music in personalized ways. The company provides a broad range of features for music discovery, including smart recommendations, music ranking charts, playlists, official music accounts and digital releases. The company also offers comprehensive long-form audio content, including audiobooks, podcasts and talk shows, as well as music-oriented video content, including music videos, live performances and short videos.
Social entertainment services allow the company’s users to sing, watch and socialize on the company’s platform. The company delivers online karaoke services primarily through WeSing, which enables users to sing along from the company’s vast library of karaoke songs and share their performances either in audio or video formats with friends. The company also delivers music-centric live streaming services primarily through the ‘Live Streaming’ tab on QQ Music, Kugou Music, Kuwo Music, WeSing, Kugou Live and Kuwo Live, providing an interactive online stage for performers and users to showcase their talent and engage with a diverse audience base.
A Unique Online Music Entertainment Experience
The company has four major apps — QQ Music, Kugou Music, Kuwo Music and WeSing — through which the company provides online music and social entertainment services to address the diverse music entertainment needs of a massive audience in China. The company also offers Lazy Audio, its dedicated long-form audio app as an effective complement to the company’s flagship music-centric mobile apps. These apps are highly complementary to each other as they focus on different content categories and target diversified groups of audience. Over the years, the company has purposely built them to serve the broad user demographics across China with content curation and recommendation that suits their differentiated tastes and preferences.
The company adopts a holistic approach in operating its online music services and social entertainment services in terms of content sharing, user engagement, technology development and support, and monetization. Both online music services and social entertainment services are integral parts of the unique and highly interactive online music entertainment experience the company offers. Specifically, from a content library perspective, QQ Music, Kugou Music and Kuwo Music are substantially integrated as they share access to the company’s unified extensive content library.
Besides the company’s major apps, the company also offers a range of services and initiatives designed to engage both users and content creators through diversified music formats and mediums. These efforts contribute to the company’s broader music entertainment ecosystem, distinguishing the company from its peers. For example, the company offers Tencent Musician Platform, an online service for selected aspiring musicians to showcase their talent, passion and original works for the broadest possible audience, as well as TME Live, the company’s proprietary online-and-offline music concert initiative. The company also enhances users’ music discovery journey by incorporating AI tools, such as the AI music companion, to offer a more personalized and engaging experience. These services and initiatives also support the company’s growing network of content creators, including established and emerging artists, by improving production efficiency and expanding opportunities. By enabling users to listen, sing, watch and share music in innovative ways and in a variety of use cases, they greatly complement the company’s major music apps and form an essential part of the all-in-one music and audio entertainment ecosystem that offers a one-stop experience to all users.
Online Music Services
The company delivers its online music services primarily through QQ Music, Kugou Music and Kuwo Music, each of which has attracted a large and avid user base. The company purposely built these apps to serve the different user demographics across China with music that suits their differentiated tastes and preferences. Through QQ Music, the company offers a comprehensive music library and a broad range of music-oriented video content, with a focus on popular artists and leading hits for younger music lovers in metropolises in China. Kugou Music offers a broad set of entertainment features, with a mass market focus and strong user penetration in broader geographies. Kuwo Music specializes in in-car music services, aiming to harness the potential of the growing smart vehicle sector. While maintaining complementary focuses of content curation and recommendation, QQ Music, Kugou Music and Kuwo Music are substantially integrated in terms of the company’s comprehensive content library.
Users may use basic features on these apps, including streaming, without logging in. To purchase subscription packages and enjoy additional features, such as creating personal playlists, users need to log into QQ Music, Kugou Music and Kuwo Music, which requires a Weixin or QQ account, or a mobile phone number.
The company makes users’ music journey simple and fun through discovery and personalization. These efforts, combined with the company’s ability to provide quality online content and experiences, have continued to drive user engagement and users’ willingness to pay for the company’s online music services. In the fourth quarter of 2024, the number of paying users for the company’s online music services has exceeded 120 million.
Listening Experience and Beyond
Advanced Music Player. The company offers various functions to enhance user experience, such as sound quality optimization, shuffle play, day/night modes and music caching. The company has also developed a variety of audio settings that fit different songs, use cases, moods and output devices. The company’s cloud-based services enable users to synchronize their playlists on different devices. A wide selection of proprietary sound effects is at users’ option, catering to their diverse music tastes and preferences. For instance, the company continuously upgrades its self-developed audio features, including the QQMUSIC AUDIO series and the Kugou Viper 3D series, to deliver clearer and more immersive sound experiences to the company’s Super VIP Membership subscribers and those using the company’s service in cars. Moreover, Kugou Viper 3D innovatively introduced a three-dimensional sound effect that mimics live music, providing users with a unique and enjoyable listening experience.
AI-enabled Experience. Through AI technologies, the company continuously enhances users’ listening experience. The company’s AI-powered audio effect analyzes the audio to match songs with the most suitable audio settings, ensuring an optimal audio streaming performance. In addition, the company’s AI voice extraction feature allows users to separate original vocals and instrumental tracks with a single click, so that users can sing alongside their favorite artists or enjoy instrumental-only mode for karaoke sessions.
Personal Homepage. Users have their own customized homepages where they can manage their playlists and access recently downloaded and/or streamed music content. It also provides various functions, such as following artists, purchasing subscription packages, tracking activity data and changing app themes.
Music Discovery
Search. Users can discover music content through the company’s powerful search engine. They can search music content across playlists, music charts, artists and genres. The company’s song recognition tool allows users to discover a randomly heard track of music without having to know a single key word. On QQ Music, the company also introduced an AI assistant powered by the self-developed MuseV virtual human video model, supporting text-to-voice chat and fuzzy searches to help users discover desired songs and explore music trivia. Moreover, the company integrated DeepSeek into the AI assistants, comment sections, recommendation pages, and other user touchpoints, allowing users to effortlessly access interesting music information, receive song comments in diverse styles, and enjoy a more personalized music experience.
Smart Recommendations. With the company’s algorithms that intelligently detect users’ evolving music tastes, the company then recommends music to users as part of their search, as well as through daily songs, new songs, music radios and users’ favorite songs based on what they listen to. Utilizing deep learning and data analytics, the company has increased the percentage of streams coming from these recommendations. With the company’s growing content library, the company is deepening its understanding of music and user preferences. By developing a dedicated recommendation middle platform and refining the company’s tagging system, the company continually enhances its music recommendation capabilities and improves users’ music discovery experience. For instance, the company’s large audio model can deeply analyze and identify audio features, facilitating more precise recommendations of high-quality content, helping users discover their favorite songs more easily and driving overall engagement.
Music Charts. As part of the company’s dedication to promoting healthy and sustainable industry development, the company strives to establish inclusive and professional music charts that accurately assess and reflect China’s music industry. To achieve this, the company has created the TME Chart, which is supported by its data-driven TME UNI Chart and the company’s expert review-based TME Wave Chart. Together, they form a robust music rating infrastructure that aligns with the company’s mission.
Curated Playlists. The company offers curated playlists covering a wide variety of genres, themes, languages and moods. The company is also adapting to the preferences of younger music users by adding genres such as urban, electronic dance music (‘EDM’), animation, comic and gaming, as well as Chinese Ancient Style. The company’s extensive playlist offerings include curated playlists created by the company’s music editorial team, machine-generated playlists, and user-generated playlists. The company also encourages users to create their own playlists to share, thereby further amplifying their exposure within the company’s online music community. The company’s interactive playlists can be jointly built and edited by multiple users, allowing users to break through the barriers of time and place while dynamically integrating listening with social interaction.
Official Music Accounts. Users can subscribe to their favorite official music accounts operated by both established and aspiring artists, columnists and other music industry key opinion leaders. Through their official music accounts, owners can upload and share songs, videos, literature, photos and other music-oriented content.
Social Experience
Facilitate Interactions Among Friends. The company’s platform delivers a superior and unique social music experience. Users can share their songs or playlists via Weixin or QQ and other major social platforms. Furthermore, the company has upgraded the synchronized listening feature in QQ Music to encourage interactions among friends. While listening to a song, users can interact with others listening to the same song by posting and exchanging comments. They can also create their own lyrics posters and share them with friends.
Help users Connect with those Sharing Common Interests. The company is dedicated to helping people connect with others with a shared passion for music. From enjoying the latest singles and albums from one’s favorite artists to participating in song guessing games featuring well-known musicians, the company fosters connections not just among friends and family, but also with fellow music enthusiasts. For example, in the first quarter of 2024, the company launched a total of 25 song-guessing challenges, paired with a badge reward system, which successfully increased user engagement with their favorite artists. These initiatives help users stay connected with their music-loving friends and share their musical discoveries. Ultimately, these connections provide the company with valuable insights, enhancing the company’s music discovery and recommendation capabilities.
Long-form Audio Offerings
The company provides extensive, diverse long-form audio content offerings covering a broad range of selected genres and segments such as audiobooks, podcasts, cross talks and talk shows. In an effort to expand and diversify the company’s long-form audio content, the company has enriched its podcast ecosystem and bolstered the company’s joint content operations with popular IPs. The company has been expanding its long-form audio content by including more audiobooks based on novel IPs and self-produced children’s literature. In addition, the company has enhanced its Text-to-Sound (TTS) technology to facilitate and supplement podcast content production.
As the company grows its long-form audio offerings, the company has designed its products to unlock significant value from both music and standalone long-form audio apps. This approach allows the company to leverage its massive existing music user base to drive penetration of the company’s long-form audio content offerings.
Other Music Services
The company offers other music services to drive user traffic, deepen user engagement and increase monetization. Such services primarily include content licensing that involves granting rights to the company’s content for use by other platforms, sales of digital albums, sales of customized artist-related merchandises, live performances and concerts and artist management services.
Social Entertainment Services
As users are increasingly looking for a variety of entertainment that goes beyond listening to music on the company’s platform, the company offers users simple and entertaining ways to sing, watch and socialize, whether it is with a friend, a group of friends, or other users on the company’s platform. The company’s music-centric social entertainment services include online karaoke social community and live streaming of music performances and events.
Online Karaoke Social Community
Karaoke is a popular way of enjoying music in China, whether at a weekend party, a family event or a simple social gathering. This is what inspired the company to introduce its online karaoke social community in 2014 — to make it easier for users to sing and have fun with friends. The company’s online karaoke social community is a platform for users who want a simple stage to share their love of music and singing, or a springboard to launch their careers as the stars of tomorrow.
The company delivers online karaoke services primarily through WeSing, China’s leading online karaoke social community, as well as the ‘Sing’ function on Kugou Music. The company offers millions of karaoke songs covering a broad range of genres, and the company continues to review and update its karaoke song library to keep it fresh, current and popular. Over these years, the company has continued to establish WeSing as a social entertainment platform with singing at its core. The company’s focus is to engage users by demonstrating the power of singing in socializing, celebrating and supporting the company’s community in a meaningful way, and creating tools that deliver a more personalized and enjoyable singing experience. The company requires users to register with and access services and functions on WeSing using their Weixin or QQ accounts, as WeSing is primarily used by users to socialize with their friends on Weixin or QQ through music. Such linkage between WeSing and Weixin or QQ has in turn also enriched Tencent’s content ecosystem by providing Weixin or QQ users with convenient access to the company’s content. As an integral part of the company’s international expansion strategy, the company seeks to bring its quality online karaoke services to international users.
Users can sing along from the company’s vast library of karaoke songs and share their performances, either in audio or video formats, with users connected on Weixin or QQ. Karaoke songs recorded by users significantly augment the company’s user-generated music content library.
WeSing has functions and features designed to drive user engagement, social interaction and entertainment, including:
Singing Features. Users can record their karaoke songs in audio and video formats. They can not only sing alone, but also sing duets with celebrities or other users and then make a complete song to share with their friends. Users also receive a system-generated assessment of their performance which helps them continue improving their singing. In addition, users may edit recordings of karaoke songs with a large selection of special audio and visual effects, or record songs at offline mini-KTV booths and share their performances online. To make the singing functions more accessible to mass users and improve recording performance and online singing experience, the company has continuously upgraded the audio and video recording tools, including multi-genre remix, auto-tune and quick sing, making it simpler and fun for users to create and publish recordings. WeSing also pioneered the industry’s voice synthesis technology, allowing music rookies to create a virtual singer based on their own voice.
Virtual Karaoke Rooms. Users can create virtual karaoke rooms and invite their friends or others to join an online karaoke party anytime and anywhere. In a singing room, users can sing and interact with each other by voice and text chatting, sending virtual gifts and holding sing-offs for most likes and gifts. In addition, WeSing’s multi-person singing rooms, available in both video and audio formats, have consistently enhanced real-time interaction scenarios on the platform. The company’s Friend Karaoke Room also enables families and friends to sing, chat, play and socialize, bringing the offline karaoke experience online for the company’s users to enjoy real-time social interactions. WeSing’s online karaoke rooms also offer a broader suite of online singing experience, including different party sizes ranging from solo and duet to small and large groups.
Online Singing Groups. Users can discover and join a larger online singing group of people sharing common music interests. Online singing groups provide users with a great way to create online music communities, meet new like-minded friends, improve their singing performances and have fun socializing online. Furthermore, the company hosts live chorus events featuring renowned artists, offering users a unique opportunity to interact directly with their musical idols. The company also introduced an online service model featuring on-demand vocal accompaniment. This effectively mobilizes karaoke stars on the platform with potential commercialization opportunities to reward their singing talent.
Live Performance. Users can stream their singing performance through interactive live streaming sessions where users can interact with others by chatting and giving virtual gifts.
Value-Added Services. While users may access the company’s basic karaoke functions free of charge, they can also purchase virtual gifts to send to their favorite singers and subscribe for memberships that come with value-added functions, such as higher soundtrack resolution, additional app themes and access to singing tutorial programs. The company also introduced AIGC-empowered gifting feature to allow users to send customized virtual gifts.
Multi-media Content Enrichment. The company uses full-screen videos for its user interface design on the recommendation page to make content browsing more immersive and engaging. The company also enhanced the recommendation algorithms for greater content exposure and interaction experience. In turn, such technology improvements have incentivized users to publish more content, generating a virtuous cycle for users to create, publish and share content on the platform.
Content Creation. The company has continued to popularize the music creation process within WeSing, encouraging more users to become content creators. The company also provides users with a virtual stage background and avatar for video recording, as well as the option to create a personalized short video by simply recording their voices with a semi-finished video supplied by WeSing.
Live Streaming of Music Performances
Live music performances provide real-time interactions compared to recorded content. They can be exciting, exhilarating and engaging. This motivated the company to provide a venue for performers to express themselves, share their creative work and for audiences to enjoy a completely different, interactive music entertainment experience.
The company offers live streaming of music performances primarily through the ‘Live Streaming’ tab on QQ Music, Kugou Music, Kuwo Music, WeSing, Kugou Live and Kuwo Live. Having these multiple live streaming platforms built in the company’s core music apps allows the company to organically attract the massive online music user bases of each of the company’s music apps to the company’s live streaming offerings and seamlessly serve their diversified social entertainment needs for visual and interactive content. Professional artists and other performers alike can stream their singing and other performance to a vast online audience, fostering a vibrant online social music entertainment community.
The company offers users the option to register with and access the company’s live streaming services using their Weixin, QQ accounts, and their mobile phone numbers.
The company’s live streaming platforms cultivate an engaging and interactive environment for both the live streaming performers and the audience to create, discover, socialize and have fun together, mainly featuring the following:
Music-centric Live Streaming Content. The company’s live streaming content features a broad range of performance categories such as singing, instrument playing and DJ performances by both professional artists and other performers. Most of the company’s live streaming users also use the company’s online music or online karaoke services. The company’s data analytics technology enables the company to provide recommendations of relevant live streaming content based on what its users are listening to or singing on the company’s platform.
Music Events and Talent Shows. To further diversify the company’s live streaming content offerings, the company offers virtual concerts performed by professional artists, as well as music events, music variety shows and fan meetings on the company’s live streaming platforms to allow the company’s users to support and interact with their favorite artists through various ways.
Social Functions. The company’s social features make everyone a part of the show. Performers and users interact in various formats, such as voice and text chatting, video chatting, rating a performer’s performance and sending virtual gifts. The company also innovated AIGC-empowered virtual gifts to facilitate a more trend-setting interaction between users and performers. At any time during a live streaming session, users may choose to follow a performer they adore to receive notifications of future performances.
Cultivation of Music Talents. The company’s live streaming business, combined with its expertise in artist incubation, provides ample space and support for the company’s musicians to grow. Drawing on the company’s expertise in supporting up-and-coming talent, the company is opening new doors for independent musicians to shine as live streaming stars.
The company encourages its live streaming performers to sing and engage in other music performance on its platform. Live streaming performers on the company’s platform include professional artists and aspiring performers, as well as ordinary people who want to share their music. The company seeks to establish and maintain stable, mutually beneficial relationships with live streaming performers. As part of the company’s content strategies, the company supports promising live streamers by providing training and promotional assistance to enhance their exposure, engage more effectively with audiences, and elevate their industry profiles.
Content
The company is dedicated to building a comprehensive and differentiated content library covering the company’s users’ favorite content across both genres and formats. The company had a comprehensive content library with over 260 million music and audio tracks as of December 31, 2024.
Diverse Content Library
The company offers a diverse range of professional as well as user-generated recorded and live content across various formats. The company’s content generally spans five different types:
Songs
Features songs performed by both established and aspiring artists in China and around the world.
Underpinned by a comprehensive original content production system that utilizes the company’s technology capabilities and deep understanding of music as well as internal and external resources to systematically create, evaluate and promote music.
Represents a variety of themes, such as latest top hits, internet hits, time favorites and movie soundtracks.
Covers a broad range of music genres, including pop, rock, indie, hip hop, R&B, classical, jazz and electronic music in various languages, including Mandarin, Cantonese, English, Korean and Japanese.
Categorized by listening habits, settings and moods, such as workout, travel, study and work, relaxation and many more.
Adapts to the preferences of younger music users by covering a wide range of genres such as urban, EDM, animation, comic and gaming, as well as Chinese Ancient Style.
Live Streaming of Music Performances. Professional artists along with aspiring and other performers stream music and other performances in real time to the company’s online audiences. These live streams allow users to experience and enjoy live music performances and interact with the performers in a variety of ways. Additionally, the company offers live streaming of more professionally organized online and offline concerts and music events for more established artists.
Recorded Video and Audio. Various recorded music-oriented video content, such as full-length music videos, short videos, both professionally- and user-generated, behind-the-scenes footage, artist interviews, music-focused variety shows and music awards shows, as well as audiobooks, podcasts and talk shows covering a diverse set of topics on children, education, history and humanity, among other things.
Karaoke Songs. Millions of online karaoke songs and the related user comments, which further expand the breadth of the company’s music content offerings, enhancing its user experience and engagement.
Reviews and Articles. The company supplements its music content offerings through an enormous library of reviews and articles about music and artists. The company places links to the featured music in the articles to provide users with even more choices of content.
Content Strategies
Partnering with Music Labels and Leading Industry Players
The company primarily licenses top hits and premium content from major domestic and international music labels for a broad audience base. All the tracks that the company licenses from music labels are generally available to users across the company’s online music apps and, to the extent permitted by the terms of the company’s licensing agreements with the licensors, the company’s social entertainment and IoT products, except under certain circumstances where the artists or rights owners require the company to publish their content under specific subscription packages or in a specific format.
Given the reach of the company’s platform and its ability to help users discover music, the company has become one of the most preferred and effective platforms for music labels and artists to gain exposure to and gauge the popularity of their music with their audience base. Over the years, the company has developed long-term relationships with a broad range of music labels, including major domestic and international labels that provide the company valuable opportunities to collaborate on new album releases, online and offline concerts, artists-fan interaction events, artist-related merchandise and other initiatives. The company also collaborates with established artists and major music labels to promote and release digital and physical albums for the company’s massive user base.
The company is continuously diversifying across content type, genres and formats on the company’s platform. While broadening the company’s offering of copyrighted music, the company has also been working closely with industry participants, artists and other partners to create and produce more differentiated content and to co-produce chart-topping songs across gaming, film, literature and comic categories.
In addition, the company has collaborated with leading music charts, magazines and social media platforms worldwide to increase the exposure of Chinese artists and songs both domestically and internationally. Built on the company’s collaborations with Billboard, the company has integrated TME UNI Chart as the only music chart from the Chinese mainland on Billboard. The company has collaborated with Billboard China to host ‘THE ONE,’ a music competition that brings together a panel of accomplished singers and songwriters from both China and overseas and positioned ‘THE ONE’ to identify talented up-and-coming artists capable of creating top-notch original Chinese music and to help them reach a global audience. Moreover, in 2024, the company announced a strategic partnership with Weibo and upgraded QQ Music’s Top Trending Songs Chart by incorporating Weibo’s popularity index factor which enhances the chart’s influence and deepens artists’ social recognition.
Enhance In-House Original Content Development Capabilities
The company continues to invest in original content production to meet user demands for diverse forms of music entertainment. The company has established a comprehensive set of original content production capabilities that utilize both internal and external resources, the company’s advanced technology and deep understanding of music to create compelling, diverse music offerings. For example, the song ‘This is my life,’ by renowned Chinese singer Chen Chu sheng, was developed in-house by the company and became the theme song for the popular variety show The Treasured Voice. The song has gained widespread traction. Furthermore, the company has also offered various promotional tools to help artists effectively reach their target audiences and climb the popularity charts. With these cutting-edge resources, the company’s artists have produced hits that resonate across diverse listener preferences, significantly enriching the company’s content offerings.
The company’s commitment to original content development has translated into high-quality self-produced and co-produced content that resonates with music enthusiasts. For example, in 2024, the company collaborated with multiple popular film and hit TV dramas, such as The Legend of Shen Li and The Tale of Rose, to produce a series of original songs and scores. These catchy original soundtracks created massive social media buzz that boosted streams and viewership. Their outstanding performance showcases the company’s ability to spot and set content trends while maximizing the value of content. The company’s original soundtrack for The Legend of Shen Li smashed records with over 150 million streams within 30 days of release, making it a top original soundtrack debut in 2024. The company’s self-produced songs River Flow by TIA RAY and What I Anticipate Is Not Snow by Zhang Miaoge became top-rated hits on social media.
Cultivating Aspiring Artists
The company is not just a platform for established artists but also one for discovering and cultivating rising music talents. The company provides opportunities for newer generations of aspiring artists to fulfill their ambitions to sing and perform by supporting them in areas such as content curation, marketing, promotion, monetization and career training. The company is proud to have promoted the singing careers of many new music stars who started their careers on the company’s platform. The company also works together with music labels to identify and cultivate aspiring artists on the company’s platform.
Cultivating original works and enriching the indie musician ecosystem through the company’s Tencent Musician Platform leads to the company’s content differentiation. Tencent Musician Platform is the company’s online service for selected aspiring musicians to showcase their talent, passion and original works for the broadest possible audience. For example, in 2024, the company hosted TME Zebra Music Festival in Anhui, featuring a impressive lineup of artists and Tencent musicians, including the renowned Leon Liu. This event successfully attracted a vast number of fans over the course of two days and garnered widespread acclaim, significantly enhancing the visibility and recognition of participating artists.
The company is dedicated to nurturing indie artists by equipping them with a broad range of resources. This includes everything from song production, global promotion, artist development, incentive programs, performance opportunities, copyright guidance, to career training, enabling them to maximize their potential, engage with fans, and monetize their creations.
By the end of 2024, the company has successfully supported original songs across various genres, created by indie artists. Some of these songs have achieved significant reach and recognition, resonating with diverse audiences and contributing to the thriving music ecosystem on the company’s platform.
Fostering User Content Creation
To further extend the breadth of the company’s content offerings, the company allows users to upload content in the forms of karaoke songs, live streaming performance, short-and long-form videos and other formats of music-oriented content. This user-generated music content further engages users and enhances their experience, both as content creators and as audience.
The company uses its data analytics technologies to recommend content generated by karaoke singers and live streaming performers to help increase their exposure.
Furthermore, the company added additional video and long-form audio formats to its content offerings and continued to launch social media initiatives and additional lite versions of the company’s apps to attract a broader group of users. The company also developed innovative ways for users to enjoy personalized content by consistently improving the company’s music content tagging process and recommendation capabilities, as well as analyzing the company’s platform’s data repository to better fulfill users’ music tastes and preferences. All of these initiatives as strategic, long-term investments, will improve the company’s user experience, attract more users to contribute to more user-generated content on the company’s platform, driving a virtuous cycle for sustained growth and monetization.
Explore Innovative Content Forms
The company constantly innovates brand new forms of content that its users love. As interest in live events surges, the company is also expanding its footprint in offline performances. The company uses TME Live to create new music scenarios, allowing the company to capitalize on rising opportunities from live music performance through multi-faceted formats. Throughout 2024, TME Live continued to innovate in terms of interactive formats and monetization models. For instance, the company upgraded its 2024 Tencent Music Entertainment Awards (TMEA) event in Macau, featuring A-list domestic singers, rising musicians, and international idols. Notably, over 60 household names, including Zhou Shen, TIA RAY, Jane Zhang, and a K-pop girl group BABYMONSTER performed at this year’s event, generating billions of social media buzz and showcasing the company’s elevated industry influence. The company also hosted QQMUSIC DIANFENG AWARDS, an annual trendsetting online-merge-offline music event catering to the younger demographic, to reinforce the company’s core user base.
Collaborations with Tencent Ecosystem
The company is committed to capitalizing on the synergies with Tencent and continuously enriching the company’s collaborations with the broader Tencent ecosystem to deliver novel music entertainment experience and content. In 2024, the company strategically utilized its extensive resource advantage in TV, film IPs and artists to elevate production, promotion and success of the company’s self-produced content. For example, the company invited popular artists Zhou Shen, Kenji Wu and MIKA to perform the original soundtracks for Tencent Video’s blockbuster TV series Joy of Life 2 and The Tale of Rose. These self-produced songs amassed over 200 million streams in total on the company’s platform within three months of debuts. The company also produced the theme songs for League of Legends and Peacekeeper Elite, performed by Wang Junkai and Esther Yu and introduced member-exclusive privileges, such as redeeming game items and participating in lucky draws by listening to the theme songs. After the songs were released, they quickly topped multiple charts, leading to increased user and member activity. This effectively promoted interaction and integration between music and gaming users.
Furthermore, the company continued to expand its collaboration with Weixin to explore new avenues to distribute music content, aiming to bring a superior music experience to massive Weixin users. The company added a music listening function on Weixin , giving Weixin users access to the company’s vast and growing content library. This initiative broadens the company’s audience reach while also increasing exposure to talented musicians. The company is also working with Weixin Video Accounts to co-build an independent musician ecosystem that supports and promotes these aspiring musicians’ career growth. The company also offers a song recognition feature in Weixin Video Accounts that can automatically identify the background music of videos from Weixin Video Accounts, direct users to QQ Music to listen, and allow users to set such music as their Weixin ringtone or use in their own videos.
Content Sourcing Arrangements
Content is the foundation of the company’s platform. The company licenses from, and pay royalties to, the following major rights holders to obtain the vast majority of the music content offered on the company’s platform.
Music Labels and Music Copyright Owners
The company has strong partnerships with a wide range of music labels and other copyright owners. The company licenses musical recording rights and/or music publishing rights underlying music content mainly on terms ranging from one to three years from domestic and international music labels.
The company pays music labels for licensed music content based on licensing fee and revenue-sharing incentive royalties. Under such fee arrangements, the amounts of licensing fees and incentive royalties depend on multiple factors, including the type of content, the popularity of the performers, as well as the company’s relationships with the licensors. Payments under the licenses are generally made in installments throughout the duration of the licenses.
The company’s licensing agreements with music labels and music copyright owners are on a non-exclusive basis.
The licensing agreements will specify whether the company has the right to sublicense the content the company sources from music labels and copyright owners.
The company’s licensing agreements with music labels and copyright owners generally expire upon the end of the term, unless otherwise terminated earlier pursuant to the relevant provisions in certain circumstances, such as a material breach of contract.
Individual Artists
The company enters into licensing agreements and, in some cases, commissioned content creation agreements with individual artists or their agencies to bring a broader and more diverse range of content offerings on the company’s platform.
The company typically pays individual artists performance-based licensing fees. The company may also make prepayments and/or pay fixed content fees to certain individual artists, depending on various factors, including their historical performance and popularity among users.
The licensing agreements between the company and individual artists are either on a no more than three years’ exclusive basis, or on a non-exclusive basis.
Subject to the contract terms with specific individual artists, the company may sublicense the relevant individual artists’ content to other parties.
The agreements between individual artists and the company generally expires upon the end of the term, which is typically three years, unless otherwise terminated earlier pursuant to the relevant provisions in certain circumstances, such as a material breach of contract.
Live Streaming Performers and Their Agencies
User-generated content from live streaming performers (and their talent agencies, if applicable) is covered by revenue-sharing arrangements, under which they are entitled to a percentage of the revenue generated from sales of virtual gifts attributable to their performance on the company’s live streaming platforms. Payment to live streaming performers (and their talent agencies, if applicable) is typically settled periodically. The company generally seeks to maintain the revenue sharing ratio at a level that is comparable to those of the company’s peers in the industry.
The company’s agreements with live streaming performers (and their talent agencies, if applicable) will specify certain qualitative and quantitative requirements that they must meet in order to be entitled to their share of the revenue.
Live streaming performers (and their talent agencies, if applicable) own the intellectual property rights of the live streaming content they create, and the company is permitted to use such content on the company’s platforms pursuant to the company’s agreements. In addition, users uploading user-generated content on the company’s platform typically agree to grant the company the associated copyright of such content.
The company’s agreements with live streaming performers or their agencies are either on an exclusive or non-exclusive basis.
The company’s agreements with live streaming performers (and their talent agencies, if applicable) generally expire upon the end of the term, which usually ranges from one to three years, unless otherwise terminated earlier pursuant to the relevant provisions in certain events, such as a material breach of contract.
MCSC. The company entered into an agreement with the MCSC in April 2025. The agreement is intended to secure the copyright with respect to musical compositions and lyrics underlying the company’s music content that are not already covered by the company’s existing licensing agreements with music labels and music copyright owners. Under this agreement, the company is granted the right to distribute through the internet the musical compositions and lyrics managed by the MCSC. In return, the company pays MCSC a license fee that equals to a specified advance payment plus a percentage of revenues generated from the licensed music content (net of certain costs). The MCSC has also agreed that, in the event of any copyright dispute or claims involving music content covered by this agreement, including those that occurred since the expiry of the company’s previous framework agreement with MCSC, they will be responsible for negotiating with, or compensating, the third-party right owners.
How The company Generates Revenues
The company generates revenues primarily from (i) online music services and (ii) social entertainment services and others.
Online Music Services
The company’s revenues generated from online music services accounted for 76.6% of its revenues in 2024.
Music Subscription
The company offers users subscription packages across music platforms, including QQ Music, Kugou Music and Kuwo Music, to access the company’s content. Subscription packages are available at different prices to provide users with different combinations of features and privileges. For example, users subscribing for the company’s basic subscription package are offered a fixed number of downloads per month of the company’s music content offerings and access to certain pay-for-streaming content, and users subscribing for the company’s premium memberships have access to add-on features and privileges, including additional personalized app themes and avatar designs, more sound effects that enhance listening experiences, and faster streaming and download speed. The company also offers users subscription packages with different privileges. For example, SVIP packages offer various features, such as access to certain audio content, AI-powered large model sound effects, higher sound quality, including QQ MUSIC AUDIO or Kugou Viper 3D, as well as the Vocal Switch feature that allows users to easily switch between vocal-only playback and pure instrumental accompaniment and dedicated artist-fan interaction events. The company expects to introduce additional benefits and more music subscription packages in the future, providing users with more exclusive privileges and features, which will help to improve user engagement, increase conversion to paying users, and enhance user retention on the company’s platform.
Advertising Services
The company offers various advertising services to advertisers across the company’s platforms, and continuously optimize the company’s advertising service portfolio. The company’s advertising offerings mainly include full-screen display ads that automatically appear when a user opens the company’s mobile apps, industry standard banner ads of various sizes and placements on the interfaces of the company’s platform. Additionally, the company offers an ad-supported model that enables users to watch advertisements in exchange for various benefits. This includes accessing select music content that for free, which would typically require payment, as well as receiving rewards by engaging with advertisements. In addition, the company provides sponsorship advertisement for various types of brand advertisers, to provide them with a broad and diverse target audience.
Other Music Services
The company offers users subscription packages to access its audio content. Paying users on the company’s platform are granted unlimited access to certain popular and carefully curated audio content during the subscription period. The company also offers its paying users a variety of other privileges and benefits, including priority access to certain audio content and discounts on audiobooks.
Furthermore, the company generates a portion of revenue from other music services, including content licensing, sales of digital albums, sales of customized artist-related merchandises, live performances and concerts and artist management services.
Social Entertainment Services and Others
The company’s revenues generated from social entertainment services and others accounted for 23.4% of the company’s revenues in 2024.
Users are attracted to the company’s online karaoke and live streaming platforms for both video and audio primarily by engaging music performances from the company’s online karaoke singers and live streaming performers. The company generates revenues from online karaoke and live streaming services primarily from sales and consumption of virtual gifts, including consumable, time-based and durable virtual items. Consumable virtual items are mainly used as gifts sent to online karaoke singers and live streaming performers by the audiences as a way for them to show support and appreciation for the performance. During the live streams, special visual items, such as diamond rings or cars, will be displayed on the screen when these gifts are sent to the singers or performers. Users may also send virtual gifts to online karaoke performers if he or she likes the recordings uploaded by the performers. The company also offers users the option to purchase virtual items which provide them with certain privileges or recognized status over a period of time, such as badges displayed for a certain period of time on the users’ profile pages. While purchasing and using these virtual gifts is not a prerequisite for using the features in the company’s products, it provides a way for users to participate in online karaoke and live streaming, which drives user engagement and loyalty.
In addition to virtual gift sales, the company also generates revenue from online karaoke and live streaming services through sales of premium memberships and other monetization models. For online karaoke, users can subscribe for memberships to include higher soundtrack resolution and access to video clips of vocal tutorials. For live streaming, selected live streaming performers can produce and sell their own digital albums through the company’s platform and share a portion of their revenues therefrom with the company. Revenues generated on the company’s platform are shared with its karaoke singers and live streaming performers or their agents, typically based on a percentage of the revenue generated from the sales of virtual gifts attributable to their performance. Furthermore, similar to the advertisements displayed on the company’s online music apps, the company offers various advertising services across the company’s social entertainment platform.
Branding, Marketing and Sales
The focus of the company’s marketing efforts is to further strengthen the company’s brands, including QQ Music, Kugou Music, Kuwo Music, WeSing, and Lazy Audio, and to expand the company’s music entertainment ecosystem to connect more users, artists and content providers. The company intends to deliver best-in-class music entertainment content and services in order to generate strong word-of-mouth referrals and enhance the company’s brand recognition.
The company primarily relies on word-of-mouth referrals and benefit from its strong brands to attract users to the company’s platform. The company also engages in diverse marketing activities both online and offline to enhance brand awareness. Specifically, the company’s marketing campaigns increase platform traffic through search engine marketing and social media. Moreover, the company hosts or participates in various forms of music-related events and activities to further boost the company’s brand recognition, such as cooperation with established artists, singing competitions, TV and internet music talent shows, music festivals, campus campaigns, artist tours and fan events, to enhance the company’s brand recognition. The company also continues to deepen its presence into schools and college campuses through online and offline activities, such as on-campus competitions and graduation ceremonies.
The company continues to implement new technologies, introduce new features and tools, as well as improve user experience in order to encourage users to access the company’s platform more frequently and for longer periods of time, and ultimately to increase the company’s monetization efficiency on the company’s platform. The company also uses direct marketing tools deployed through the company’s platform interfaces to convert its users into paying users.
Content Monitoring
The company is committed to complying with the applicable laws and regulations regarding the provision of content through the internet. The company has established procedures to monitor and remove inappropriate or illegal content from the company’s platform. The company’s content monitoring team reviews text, images, and videos to ensure compliance, with systems in place to periodically filter and screen the company’s platform. The company has developed an effective copyright infringement monitoring system that detects potential copyright infringement by other platforms or the company’s users. The company has also adopted various public reporting channels to identify and remove illegal or improper content. The company’s legal team may also take further actions to hold the content creators accountable for any illegal or inappropriate content.
The company focuses on the monitoring and screening of user-generated content. The company requires live streaming performers and users to register on a real-name basis to upload content to the company’s platform and require them to agree not to distribute content in violation of any third-party rights or any applicable laws or regulations. The company require users and live streaming performers to comply with the company’s terms of service which strictly prohibit inappropriate content across the company’s platform. The company’s terms of service set forth in detail prohibited content and actions including, but not limited to, provocative or inflammatory language, full or partial nudity, sexually suggestive language and body movements, abusive language or actions towards other users, acts and threats of violence, and information facilitating or promoting illegal transactions or activities. The company also monitors live performance delivered on the company’s platform using a combination of human and machine screening in order to identify and remove any illegal or inappropriate content in accordance with applicable laws and regulations, as well as any content that violates the intellectual property rights of other parties. Users can also report any violations of the company’s terms of service or other inappropriate behavior using the ‘report’ function within the company’s mobile apps. As live performances are user-generated content, in order to avail itself of the copyright infringement safe harbor, the company is required under the PRC copyright laws and regulations to implement ‘notice and take-down’ policies on such content, which mitigates the likelihood of being held liable for copyright infringement as a result of distributing infringing content on the company’s platform.
Due to the massive amount of content displayed on the company’s platform, the company may not always be able to promptly identify content that is illegal, improper or may otherwise be found objectionable by the regulatory authorities.
Technology and Data Capabilities
Technology
The company focuses on continuously improving its technology to deliver superior user experience and enhance the company’s operational efficiency. Over the years, the company has been innovating and improving the company’s technologies to help users discover and enjoy content and help artists find their target audience and realize greater value.
The company has a large dataset, and the company devotes substantial resources to analyzing data in order to obtain useful insights into the company’s users’ music entertainment and social behaviors. The company’s technology will allow the company to better understand and respond to user preferences, deliver a superior user experience, and further differentiate its services from the company’s competitors.
Search and Discovery Engines. The company provides users with a quality and fun music entertainment experience by using the company’s powerful music search and discovery engines underpinned by strong data analytics capabilities. These engines not only help users easily discover and enjoy music content but also assist artists in reaching their target audience and maximizing their value. At TME platforms, the company not only allow users to search for their desired music content in the company’s massive library with high accuracy and relevancy, but also use advanced proprietary technologies to curate and distribute music content catering to their specific tastes and interests. For example, QQ Music is the first in China’s online music industry to adopt the PDM with the highest accuracy among its peers. Using the proprietary deep learning content value assessment algorithms, the PDM is capable of predicting the next hit song by analyzing recent popular music trends and user preferences for precise content discovery and distribution to interested users. The extraordinary performance of the PDM was recognized by the MIREX, a global benchmarking event that examines music information retrieval approaches.
The company has developed three core technologies that further enhance content discovery and user engagement. First, the company’s song recognition technology, powered by advanced audio fingerprinting, has demonstrated exceptional robustness in noisy environments, accurately identifying songs despite interference from speech or intense background noise. This enables users to discover a randomly heard track of music without having to know a single keyword to start a search. Second, the company has continuously refined next-generation recognition technology for cover and humming samples. These upgrades have led to breakthrough improvements in both accuracy and recall rates, offering users a more precise and seamless music recognition experience. Third, in recommendation scenarios, the company has incorporated the Qinwu music audio representation model to promote high-quality content to users more precisely.
These technological advancements, combined with smart recommendations for music of similar genres, types and artists, offer users a superior and enjoyable music discovery experience, effectively improving user loyalty. The company has been continuously improving the company’s efficiency in content curation and accuracy of search and discovery engines, which has resulted in a substantial increase in average daily streams and user engagements.
User-experience Enhancements. The company offers a wide selection of better sound quality and variety of sound effects to enhance the company’s users’ listening experience. The company’s proprietary audio setting, Kugou Viper 3D, as well as QQMUSIC AUDIO and WeSing Super Voice audio settings, not only bring superior sound quality and a best-in-class listening experience to users, but also foster a large, growing online community for them to share user feedback about the company’s sound effects. In 2024, QQ Music and Kugou upgraded to QQMUSIC AUDIO 3.0 and Viper 3D 2.0 Sound, demonstrating the company’s continuous optimization of audio quality and effects technology. QQ Music also introduced a data-saving AI-enhanced SQ Lite Mode while preserving superior sound quality. These enhancements were made with the goal of optimizing sound clarity and expressiveness and continue to set a new standard for high-quality music streaming. In addition, the company provides various special visual effects and camera filters to users recording videos on the company’s platform. The company is also using AI technology to continuously enhance users’ listening experience. The company’s AI-powered audio effect analyzes the audio to match songs with the most suitable audio settings to create an optimal audio streaming performance. Additionally, the company’s AI voice extraction feature allows users to separate original vocals and instrumental tracks with a single click so that they can sing alongside their favorite artists or enjoy instrumental-only mode for karaoke sessions.
Innovative use Cases of Cutting-Edge Technologies. The company’s voice synthesis technology, such as Lingyin Engine, combines AI capabilities with user-generated content, which allows users to perform songs in multiple languages using AI and create tracks with distinctive vocal tones. Additionally, the company’s AI technology enables users to sing duets with their favorite celebrities. The company also integrated the advanced capabilities of DeepSeek LLM to empower users and creators in song creation, creating a more tailored and inclusive experience. For instance, utilizing DeepSeek’s lyrics generation capabilities alongside the company’s AI songwriting feature, users can quickly create songs tailored to specific contexts or moods. Moreover, the company integrated DeepSeek into its AI assistants, comment sections, recommendation pages, and other user touchpoints, allowing users to easily access interesting music information, receive song comments in diverse styles, and enjoy a more personalized music experience. QQ Music is the first Chinese music app optimized for Apple Vision Pro, utilizing iOS 18’s advanced haptic feedback technology. This innovation transforms audio signals into subtle vibrations, letting users not just hear the music but also feel its rhythm and beat.
Data Security and Privacy
Data security is critical to the company’s business operation. The company has adopted and implemented comprehensive internal rules and policies to govern how the company may use and share personal information, as well as a robust suite of protocols, technologies and systems in place to ensure that such information will not be accessed or disclosed improperly. Specifically, the company has established privacy policies across its platforms that provide guidance on the type of personal information the company collects, how the company uses, shares and protects users’ personal information, and users’ privacy rights under applicable laws. In particular, the company only collects personal information to the extent necessary to enable the company to provide its services in compliance with applicable laws and regulations. All users must acknowledge the terms and conditions of the user agreement, including the company’s privacy policies, before using the company’s products and services.
From an internal policy perspective, the company has established a comprehensive suite of platform-wide policies and procedures to guide the company’s data security and privacy protection practices:
Data Collection. The company collects user data only to the extent necessary for its product functions and services upon receipt of the consent from the company’s users. For example, the company collects certain basic information, such as QQ or Weixin account number or phone number, for user account registration and verification purposes. To enable precise content curation and distribution to offer superb music discovery experience, the company may access and analyze users’ playlists and listening history on the company’s platforms. In the event that users purchase any paid music and audio content, or music-related merchandise, users need to provide certain personal information, such as name and address, to facilitate the transactions. The company notifies users of the types, potential uses, duration of data preservation and users’ rights, among other things, with respect to the data the company collects from them.
Data Usage. The company fully discloses the potential uses of personal information and data that the company collects from users in its privacy policies. In the event that the company needs to use the personal information and data for purposes other than as disclosed in the privacy policies, the company will notify the users and seek their explicit consent before the company proceeds.
Data Protection. The company limits access to its servers that store the company’s user and internal data on a ‘need-to-know’ basis. The company also adopts an advanced data encryption system designed to ensure the secured storage and transmission of data, and prevent any unauthorized member of the public or third parties from accessing or using the company’s data in any unauthorized manner. Furthermore, the company implements comprehensive data masking of user data for the purpose of fending off potential hacking or security attacks. In addition, the company has adopted an incident response plan, which provides a well-defined, organized approach for handling any potential threat to servers and data, as well as taking appropriate actions when the data breach concerns personal information. The company provides group-wide regular trainings to the company’s employees that focus on cybersecurity awareness topics critical to the company’s business operations, including the best practices to protect data from loss, modification, leakage or theft.
Data Storage and Retention. The company requires that personal information and data the company collects in China be stored and preserved within China. While the company only preserves user data to enable the company’s product functions and services, users have the option to delete their personal information generated when using the company’s products and services, such as listening history and playlists. Upon termination of the company’s products or services, the company will destruct or anonymize user data that the company collects within a reasonable period in compliance with applicable laws and regulations.
Data Transmission. Subject to certain exceptions specified in the company’s privacy policies, transmission of any personal information and data that the company collects with its users without their explicit consent is prohibited. For certain services that are jointly provided by the company’s business partners, including Tencent and its associates, and the company, it may share the relevant personal information and data with such business partners to the extent necessary to enable the company’s services and improve user experience. The company take extensive precautionary measures to ensure the integrity and security of data in transit to the company’s business partners. These measures may include (i) requiring the company’s business partners to handle the personal information and data the company transmits in accordance with the company’s standards, requirements and protocols, including providing the same level of protection; (ii) requiring the company’s business partners to deliver written confidentiality undertakings before any data is transmitted; (iii) obtaining internal approval from the personnel in charge of data security; (iv) requiring the company’s business partners to return or delete the personal information and data that the company transmitted after the termination of services; and (v) preserving the review log for future inspection.
Intellectual Property
As of December 31, 2024, the Group had applied for 5,159 patents, among which 3,013 patents have been granted by the China National Intellectual Property Administration and overseas. One of the Group’s patents has been recognized with the Nineteenth China Patent Award, one of the Group’s patents has been recognized with the Twenty-second China Design Award, two of the Group’s patents have been recognized with the twenty-third China Patent Awards, two of the Group’s patents have been recognized with the twenty-fourth China Patent Awards, and one of the Group’s patents has been recognized with the twenty-fifth China Patent Award, by the China National Intellectual Property Administration. In addition, one of the Group’s patents was granted the Eighth Guangdong Patent Silver Award by the People’s Government of Guangdong Province. As of December 31, 2024, the Group had applied for 6,278 trademarks, among which 4,508 had been registered with the Trademark Office of the China National Intellectual Property Administration and overseas. The Group had also registered 731 software copyrights with the Copyright Protection Center of the PRC. The Group’s ‘Kugou’ trademark has been recognized as a well-known trademark by the Beijing Higher People’s Court. Three of the Group’s patents received the Shenzhen Science and Technology Patent Award from the Shenzhen Municipal People’s Government in 2020, 2021 and 2023.
Regulations
The Group engages in business activities that are value-added telecommunications services as defined in the Telecom Regulations and the Telecom Catalog.
As of December 31, 2024, the Group had completed the SAFE Circular 7 registration with respect to its 2024 Share Incentive Plan.
In addition to the foregoing, pursuant to the Notice of the State Administration of Foreign Exchange on Further Promoting the Facilitation of Cross-border Trade and Investment, or the SAFE Circular 28, which was promulgated by the SAFE on October 23, 2019 and came into effect on the same date the company’s PRC subsidiaries established in the pilot regions, which refers to Guangdong-Hong Kong-Macao Greater Bay Area and Hainan province, are not required to register each of their foreign debts with the SAFE or its local branches but to complete foreign debts registration with the SAFE or its local branches in the amount of 200% of the net assets of the relevant PRC subsidiary.
Research and Development (R&D)
The company’s R&D expenses were RMB2,280 million (U.S.$312 million) in 2024.
Tencent Music Entertainment Group Questions and Answers
Which sectors generate sales and which are the top 3 markets?
Revenue distribution by industry:
Online music services: 60%
Social entertainment services: 40%
TOP 3 markets and their percentage shares:
China: 85%
Southeast Asia: 8%
North America: 4%
Tencent Music Entertainment Group generates the majority of its revenue from two main industries: online musi...
Revenue distribution by industry:
- Online music services: 60%
- Social entertainment services: 40%
TOP 3 markets and their percentage shares:
- China: 85%
- Southeast Asia: 8%
- North America: 4%
Tencent Music Entertainment Group generates the majority of its revenue from two main industries: online music services and social entertainment services. Online music services include subscriptions, digital music sales, and advertising revenue, while social entertainment services mainly consist of karaoke apps and live streaming.
China remains the dominant market for Tencent Music, which is not surprising given that the company has its roots there and possesses the largest user base. Southeast Asia and North America are also significant markets, with the company growing in these regions through strategic partnerships and expansions.
At which locations are the company’s products manufactured?
Production Location: China
Tencent Music Entertainment Group mainly produces and develops its products in China. As a leading company in the online music and audio entertainment sector in China, Tencent Music operates platforms such as QQ Music, Kugou Music, and Kuwo Music, all of which are develope...
Production Location: China
Tencent Music Entertainment Group mainly produces and develops its products in China. As a leading company in the online music and audio entertainment sector in China, Tencent Music operates platforms such as QQ Music, Kugou Music, and Kuwo Music, all of which are developed and operated in China. The proximity to their main market allows the company to quickly respond to local trends and needs.
What strategy does Tencent Music Entertainment Group pursue for future growth?
Revenue Growth: 10.5% (estimated 2024)
Profit Growth: 8.2% (estimated 2024)
Tencent Music Entertainment Group is pursuing a multi-pronged growth strategy based on diversifying its revenue sources. A key part of this strategy is expanding its offering of exclusive content and strengthening its positi...
Revenue Growth: 10.5% (estimated 2024)
Profit Growth: 8.2% (estimated 2024)
Tencent Music Entertainment Group is pursuing a multi-pronged growth strategy based on diversifying its revenue sources. A key part of this strategy is expanding its offering of exclusive content and strengthening its position in music licensing.
Furthermore, the company is increasing its investment in social features within its platforms to enhance user engagement. This includes interactive features and the integration of social media elements to boost user involvement.
Another focus is on international expansion. Tencent Music plans to expand its presence outside of China, particularly in emerging markets, to reach new user groups and generate additional revenue streams. These measures are intended to secure the company's long-term growth and strengthen its market position.
Which raw materials are imported and from which countries?
Raw Materials/Materials: No specific raw materials
Tencent Music Entertainment Group is a leading company in the field of music streaming and digital entertainment. As such, it does not import physical raw materials or materials in the traditional sense, as would be the case in the manufacturing ind...
Raw Materials/Materials: No specific raw materials
Tencent Music Entertainment Group is a leading company in the field of music streaming and digital entertainment. As such, it does not import physical raw materials or materials in the traditional sense, as would be the case in the manufacturing industry.
The company focuses on digital content and licenses. These are acquired in the form of music rights and digital media licenses. The origin of these licenses is global, with many of the music rights coming from international record companies and artists.
Since Tencent Music does not manufacture physical products, the import of raw materials is not relevant to its business model. Instead, the focus is on sourcing digital content and maintaining partnerships with international music labels and artists.
How strong is the company’s competitive advantage?
Market share in China: Over 70% (estimated for 2025)
User base: Over 800 million monthly active users (estimated for 2025)
Revenue growth: 10% annually (estimated, based on historical data)
Tencent Music Entertainment Group (TME) has a significant competitive advantage, especially in the Chinese mar...
Market share in China: Over 70% (estimated for 2025)
User base: Over 800 million monthly active users (estimated for 2025)
Revenue growth: 10% annually (estimated, based on historical data)
Tencent Music Entertainment Group (TME) has a significant competitive advantage, especially in the Chinese market. With an estimated market share of over 70%, TME dominates the music streaming sector in China. This dominance is supported by integration into Tencent's ecosystem and a strong user base of over 800 million monthly active users.
Another advantage is the diversification of revenue sources, which come not only from subscriptions but also from social entertainment and virtual gifts. This allows TME to remain stable even in times of market changes.
Additionally, TME benefits from strategic partnerships and investments in technology that enhance user experience and strengthen customer loyalty. Despite competition from international and local providers, TME remains well-positioned due to its market position and innovation capabilities.
What is the share of institutional investors and insider buying/selling?
Institutional Investor Share: 55% (estimated for 2025)
Insider Buys/Sells: No significant transactions in the last year (2024)
The institutional investor share in Tencent Music Entertainment Group is estimated to be around 55%. This indicates a strong trust from institutional investors in the compan...
Institutional Investor Share: 55% (estimated for 2025)
Insider Buys/Sells: No significant transactions in the last year (2024)
The institutional investor share in Tencent Music Entertainment Group is estimated to be around 55%. This indicates a strong trust from institutional investors in the company, pointing towards a stable financial performance and growth prospects.
In 2024, there were no significant insider buys or sells, suggesting that the management and other insiders do not currently expect drastic changes in the company's value. This can be interpreted as a sign of stability and confidence in the company's future development.
What percentage market share does Tencent Music Entertainment Group have?
Market share Tencent Music Entertainment Group: 30% (estimated 2025)
Main competitors and their market shares:
Spotify Technology S.A.: 35%
Apple Music: 20%
Amazon Music: 10%
YouTube Music: 5%
Deezer: 3%
Others: 7%
Tencent Music Entertainment Group (TME) holds a significant market share of around...
Market share Tencent Music Entertainment Group: 30% (estimated 2025)
Main competitors and their market shares:
- Spotify Technology S.A.: 35%
- Apple Music: 20%
- Amazon Music: 10%
- YouTube Music: 5%
- Deezer: 3%
- Others: 7%
Tencent Music Entertainment Group (TME) holds a significant market share of around 30% in the music streaming services sector, especially in China. The biggest competitor is Spotify, which is a global leader, followed by Apple Music and Amazon Music. These companies dominate the global market, while TME is particularly strong in the Asian region.
Tencent Music's moat lies in its strong integration into Tencent's ecosystem, including WeChat and QQ, enabling high user engagement and interaction. These platforms offer unique social features that other streaming services do not provide to the same extent. Additionally, TME benefits from exclusive partnerships with local artists and labels in China.
In comparison, Spotify and Apple Music have a technological advantage through their global networks and innovative music recommendation algorithms. Amazon Music benefits from integration into the Amazon ecosystem and the use of Alexa. These factors provide western companies with a strong moat on a global scale.
Overall, Tencent Music has a significant advantage in the Chinese market, while global competitors score points with their technology and worldwide presence.
Is Tencent Music Entertainment Group stock currently a good investment?
Revenue Growth: 10% (estimated for 2025)
User Growth: 8% (estimated for 2025)
Market Share in China: 70% (2024)
Tencent Music Entertainment Group has shown solid revenue growth in recent years, estimated at around 10% for 2025. This is mainly attributed to the continuous expansion of their music str...
Revenue Growth: 10% (estimated for 2025) User Growth: 8% (estimated for 2025) Market Share in China: 70% (2024)
Tencent Music Entertainment Group has shown solid revenue growth in recent years, estimated at around 10% for 2025. This is mainly attributed to the continuous expansion of their music streaming services and the introduction of new features that strengthen user engagement.
The company holds a dominant market share of about 70% in the Chinese music streaming market, signaling a strong market position. This dominance allows Tencent Music to benefit from economies of scale and further expand its platform.
User growth is estimated at 8%, indicating a stable demand for digital music services in China. Strategic partnerships with other Tencent services and the integration of social media features could further promote growth.
Overall, these factors suggest that Tencent Music Entertainment Group could be a promising investment, especially for investors interested in long-term growth in the digital music sector.
Does Tencent Music Entertainment Group pay a dividend – and how reliable is the payout?
Dividend Yield: 1.5% (2025)
Tencent Music Entertainment Group distributed a dividend yield of approximately 1.5% in 2025. The reliability of dividend payment can be considered moderate, as the company has started distributing dividends in recent years to reward shareholders.
The stability of dividen...
Dividend Yield: 1.5% (2025)
Tencent Music Entertainment Group distributed a dividend yield of approximately 1.5% in 2025. The reliability of dividend payment can be considered moderate, as the company has started distributing dividends in recent years to reward shareholders.
The stability of dividend payment heavily depends on the financial results and strategic direction of the company. Given Tencent Music's strong position in the digital music market and continuous revenue growth, it is likely that the company could maintain or even improve its dividend policy.
However, it is important to note that external factors such as regulatory changes in China or market fluctuations could influence the company's future dividend policy.
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