Reported by Bloomberg on September 1. According to the informed resource, Tencent Music Entertainment Group plans to finish a new round of financing before its initial public offering (IPO), a valuation of $10 billion. Tencent Music is held by Tencent holding company.
By establishing relation of stake rights with the record company, Tencent Music is able to obtain crucial streaming rights in China’s increasingly competitive music market. Tencent previously separated its music division and combined it with China Music Group to seek a bigger share in the domestic streaming music market. By 2018, China streaming media’s music subscription revenue is expected to reach 4.37 billion yuan ($664 million).
Tencent Music competes with music products of Alibaba Group and Netease and is collecting content to cater to users. These users in turn finds online entertainment content and want to get services tailored to their preferences. Tencent Music has copyright cooperation with the Universal Music Group, Warner Music Group, Sony Music Corporation and other global large record companies to obtain distributorship of Beyonce, Taylor Swift and other artists.
Tencent Music also has reached copyright distribution agreement with some of the most influential record companies that are critical to the Chinese market, including H.Brothers and South Korea’s YG Entertainment.
Tencent Music mainly provides music services through QQ music, Kugou music and Kuwo music, with a total of 600 million monthly active users. These music apps offer free services and subscription models. Tencent Music also runs a live streaming service and a karaoke app.
This article originally appeared in Phoenix Technology and was translated by Pandaily.
Click here to read the original Chinese article.