Apparently their edge for revenue generation is live streaming karaoke performances, and tipping performers. I wonder how this specific social media model will hold up in a crowded market in the US.
“Tencent Music, bound for U.S. IPO, profits from social savvy” – www.reuters.com/article/us-tencentmusic-ipo/tencent-music-bound-for-u-s-ipo-profits-from-social-savvy-idUSKCN1M718Y
In a market that until a few years ago was dominated by pirated music, Tencent Music’s strong financials are due to a business model that does not rely primarily on the monthly subscription payments that sustain Spotify and other Western music streaming companies.
Instead, analysts say much of its revenue comes from services such as karaoke live broadcasting where admirers tip performers.
“China music apps are more advanced in their integration of music streaming with live broadcasting, karaoke as well as social community,” said Elinor Leung, managing director of Asia telecom and internet research at CLSA.