Tencent music’s solid revenue of 2018 attributed to the rapid growth of paid users

There is a growing number of youngsters who are willing to pay for their interests online, and Tencent Music Entertainment Group (TME) is one platform that benefits from the transitioning consumption concept. Thanks to the scaling up of a paid up membership user base which comprises of 27 million subscribers, TME’s online music service segment grew close to 40% year-on-year in 2018, with gross profit nearly doubled, and net profit increased by around 38% despite the RMB 1.5 billion accounting charge from label partners. Besides that, self-production is also part of the strategic plan for a long-term monetization by encouraging and selling original music content creation.