Invest in Tencent Music
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TME has developed the largest online music entertainment platform in China, operating the top four music mobile apps in terms of mobile MAUs (monthly active users) in the second quarter of 2018.
The platform comprises online music, online karaoke and music-centric live streaming services, supported by company’s content offerings, technology and data.
With over 800 million total unique MAUs (monthly active users) across its four main products in the second quarter of 2018, user base covers the full spectrum of user demographics in China. The company offers the largest music content library with over 20 million tracks from over 200 domestic and international music labels, as of June 30, 2018.
Tencent and its subsidiary Tencent Music operate in the “pan-entertainment” market: a market of multi-level products that are based on a company’s intellectual property; in other words, the company aims connecting as much users as possible by providing them with access to various services from a single account: social networking, gaming, video and music streaming, etc.
According to iResearch, the overall size of China's online music pan-entertainment market reached approximately RMB33.0 billion in terms of revenue in 2017, and is expected to grow to RMB215.2 billion in 2023, representing a CAGR of 36.7% from 2017 to 2023.
If there is a loss of partnerships with major music content providers, the breadth or quality of content offerings may be adversely affected or content acquisition costs may increase.
The revenue model for online music entertainment services is relatively new in China and may not be effective, which may cause us to lose users and materially and adversely affect our business, financial condition and results of operations.
Spotify is a global music streaming service legally offering free-of-charge listening to music.
The 3-months share price performance is +28%.
iQiyi is an online entertainment platform giving access to video content in China: films, TV series, TV shows and anime; its US peer company is Netflix. The 3-months share price performance is +79%.
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