Chinese tenant music is affected by the coronavirus virus – variety Little2 min read
The weight of the coronavirus outbreak at Tencent Music Entertainment, China’s largest online music business. However, stay-at-home orders have helped the group increase its customer base.
For the first three months of the year, the company showed revenue increased 10% to RMB 6.31 billion (89 891 million), and net profit decreased 10% to RMB 887 million ($ 125 million).
The subscription tradition has not traditionally been an influential business model for the company. Thus, the management of the company has welcomed the acceleration in the delivery of customer numbers. They grew by 70% year-on-year to 42.7 million at the end of March, now representing .5.5% of the company’s monthly users.
The company’s larger social entertainment services, which include karaoke platforms and live-stream music, have been marked by lockdown measures across much of China since late January in response to the Kovid-19 outbreak. Lockdowns have reduced karaoke use and increased costs, as the company has shared more revenue to retain top creators.
“While acknowledging the impact of the Covid-19 epidemic on our social entertainment services, we have recently begun to see a moderate recovery,” said Cushion Pang, CEO of Tencent Music. “By ensuring that our model provides a winning situation for both the artist and us, we have been able to attract more talented musicians and develop more original content.”
Live streaming is a growing trend across many entertainment fields. Tencent Music says it has launched a live streaming model that integrates offline concerts with an online live streaming experience. “In a short span of five weeks we have successfully done five online live concerts for both established artists including JJ Lin and Rini Liu and got special themes like OST Concert for the popular web drama series‘ Monday or One Day ’and got positive initial user feedback, It said in a statement.
The company, which is listed on the New York Stock Exchange, is largely controlled by technology giant Tencent, and has seen a minority stake in global music streaming service Spotify. Tencent Music covers both Spotify and Universal Music. Tencent will announce its own financial data on Wednesday.