Latest news with #TencentMusic
Yahoo
10 hours ago
- Business
- Yahoo
Tencent Music Shares Double on Break From China Price Cut Script
(Bloomberg) -- China tech investors weary of the nation's relentless price competition can look to one pocket that's thriving by moving in the opposite direction: online music. Security Concerns Hit Some of the World's 'Most Livable Cities' JFK AirTrain Cuts Fares 50% This Summer to Lure Riders Off Roads Taser-Maker Axon Triggers a NIMBY Backlash in its Hometown NYC Congestion Toll Cuts Manhattan Gridlock by 25%, RPA Reports How E-Scooters Conquered (Most of) Europe Hong Kong-listed shares of Tencent Music Entertainment Group and smaller rival NetEase Cloud Music Inc. have more than doubled since the end of 2023, outperforming most Chinese internet peers. That's come as they shift to focus on monetization of their loyal user bases while beefing up their podcast and live event offerings. Tencent Music has notched four-straight quarters of growth in revenue per paying user by successfully driving subscribers to more expensive plans. That's a refreshing break from the frequent headlines on deep price cuts for EVs and e-commerce that has sparked volatility in China tech stocks in recent years. 'Music is becoming more important to the lives of young people in China, and you're not going to just save one or two yuan to abandon all your playlists and jump to another platform,' said Ivan Su, an analyst at Morningstar Inc. 'The monthly subscription price — which costs about the same as a cup of coffee — is very low.' The Chinese online music industry has consolidated over the past few years, leaving the units of Tencent Holdings Ltd. and NetEase Inc. in a virtual duopoly. Spotify is blocked by a firewall in China. Tencent Music is the leader with about 555 million monthly active users as of the end of March, some 22% of which were paid subscribers. That compares with a paid penetration rate of around 40% for Spotify. One of the key planks of Tencent Music's monetization strategy is its Super Premium VIP tier, where users pay roughly $4 per month for exclusive content plus early access to special artist merchandise and live events. Subscribers pay about $2 for a basic monthly subscription. The percentage of premium members relative to all paying users could rise to 19% in 2027 from 12% this year, Goldman Sachs Group Inc. analysts including Lincoln Kong wrote in a note this week. The bank added they expect 10% growth in average revenue per paid user this year and high-single digits for 2026 onward. Like Spotify, Tencent Music is also making moves into other services. This month it announced a plan to buy Chinese podcasting startup Ximalaya, and in May it disclosed its purchase of a stake in South Korean K-pop agency SM Entertainment Co. 'There are a lot of innovative ways for the leading players to monetize their users, and all of these are very affordable items in this environment,' said Agnes Ng, a portfolio specialist at T. Rowe Price Group Inc. 'With only two major players left in the market, competition is very benign and market share is stable.' Morningstar's Su said that NetEase Cloud's stock has outperformed as it 'turned profitable a lot quicker than people expected.' On the other hand Tencent Music has a 'much more robust content library,' with a broader user base. The subsector's big gains have made the stocks somewhat pricier. Tencent Music shares are trading at 21 times forward earnings estimates, above their three-year average but well below Spotify's nearly 60 times. NetEase Cloud Music is at 24 times. Tencent Music's valuations 'still look attractive, particularly when compared to Spotify,' while content-related stocks overall have been enjoying a premium due to lower exposure to tariffs, said Kevin Net, head of Asian equities at Financiere de L Echiquier. 'I think investors like its 70%+ market share in an underpenetrated market, with potential for price increases.' Ken Griffin on Trump, Harvard and Why Novice Investors Won't Beat the Pros Is Mark Cuban the Loudmouth Billionaire that Democrats Need for 2028? The US Has More Copper Than China But No Way to Refine All of It Can 'MAMUWT' Be to Musk What 'TACO' Is to Trump? How a Tiny Middleman Could Access Two-Factor Login Codes From Tech Giants ©2025 Bloomberg L.P. Sign in to access your portfolio
Bloomberg
10 hours ago
- Business
- Bloomberg
Tencent Music Shares Double on Break From China Price Cut Script
China tech investors weary of the nation's relentless price competition can look to one pocket that's thriving by moving in the opposite direction: online music. Hong Kong-listed shares of Tencent Music Entertainment Group and smaller rival NetEase Cloud Music Inc. have more than doubled since the end of 2023, outperforming most Chinese internet peers. That's come as they shift to focus on monetization of their loyal user bases while beefing up their podcast and live event offerings.
CNET
4 days ago
- CNET
Spotify Makes Downloading Music To Wear OS Smartwatches Easier
Spotify premium users sporting a Pixel Watch, Samsung Galaxy Watch or one of a host of other Wear OS smartwatches just got a handy update that'll allow them to download songs to their wearables with greater ease, the company said in an Instagram post June 13. The update allows customers to use the Spotify app on their phones to send song downloads to their smartwatches, tablets and desktops. Previously, song downloads had to be done on the wearable itself, a clunky process. For runners, having songs saved locally on a smartwatch means they can still listen to music via Bluetooth headphones without needing to carry a large smartphone on runs. Users can also use the Spotify app on their phones to manage their song library on various devices. This feature is limited to five devices. New update to the Spotify Android app for easier song downloads with Wear OS smartwatches. Spotify A representative for Spotify directed CNET to the press release on the change. Spotify is the world's most popular music streaming service with over 30% market share, according to Statista. It dwarfs competing streaming platforms such as Tencent Music, Apple Music, Amazon and YouTube Music. Despite Spotify's global popularity and Android being the most popular mobile operating system in the world, this update comes years after that of the competing Apple Watch, which received offline downloads back in 2021. This is likely because Wear OS, Google's wearable operating system, was languishing for years without proper support, with Samsung opting to develop its own wearable operating system during Google's hiatus. Google eventually got back into the game with the launch of the Pixel Watch in 2022. As a result, Samsung, OnePlus, Mobvoi and TAG Heuer and others have all released Wear OS smartwatches. While the Apple Watch remains the most popular smartwatch in the world, it's been losing market share. Currently, Apple only has 20% global market share, according to Counterpoint Research. That's largely due to the dominance of HarmonyOS in China, an Android fork which powers smartwatches from Huawei. The market outside of China paints a different picture. Apple's watchOS had a projected 49% market share, with Wear OS gaining ground with 27% in 2024, according to Counterpoint Research. The increasing popularity of Wear OS smartwatches is potentially why Spotify decided to roll out more improvements for greater feature parity. How to download songs to Pixel Watch or Galaxy Watch devices with Spotify
Yahoo
10-06-2025
- Business
- Yahoo
Tencent Music shares rise after acquiring podcast giant Ximalaya
-- Tencent Music Entertainment Group (NYSE:TME) shares rose 5.4% on Tuesday following news that the company will acquire Chinese podcast platform Ximalaya in a $2.4 billion cash-and-stock transaction. The deal, aimed at positioning Tencent Music as a dominant force in China's online audio sector, mirrors a broader industry shift toward diversified audio services, in line with global peers such as Spotify (NYSE:SPOT). According to a June 10 filing with the Securities and Exchange Commission, Tencent Music signed a definitive Agreement and Plan of Merger to acquire Ximalaya, pending regulatory approvals and customary closing conditions. Upon closing, Ximalaya will become a wholly owned subsidiary of Tencent Music, significantly expanding its footprint in China's rapidly growing podcast market. Ximalaya, one of the country's most popular audio platforms, boasts 303 million monthly users and serves as a major destination for podcasts, audiobooks, and livestream content. The merger, if finalized, would instantly elevate Tencent Music's user base and deepen its content offerings beyond music. The transaction includes $1.26 billion in cash and an equity component comprising Tencent Music Class A ordinary shares, representing up to 5.5686% of the Company's total issued and outstanding shares before closing. A portion of those shares, 0.37% of the total, will be distributed to Ximalaya founder shareholders post-closing, subject to conditions outlined in the agreement. Ximalaya will also undergo a restructuring of certain existing business units before the deal is completed, though full details of that process were not disclosed. Tencent Music emphasized that the restructuring and integration would support long-term synergistic value creation. The acquisition reflects Tencent Music's ongoing effort to evolve from a music-streaming platform to a broader digital audio enterprise. As competition rises and subscription growth slows in traditional streaming, players are increasingly looking to podcasting and user-generated audio to deepen engagement and create new monetization channels. Related articles Tencent Music shares rise after acquiring podcast giant Ximalaya Citi adds Qorvo and Skyworks Solutions to 90-day upside catalyst watch OpenAI to use Google cloud service alongside Microsoft Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
South China Morning Post
10-06-2025
- Business
- South China Morning Post
Tencent Music to buy Ximalaya, an audio app used by 300 million users
Tencent Music Entertainment Group , China's largest online music platform by user count, announced on Tuesday its acquisition of audio content platform Ximalaya for about US$2.4 billion in cash and stock. The Tencent Holdings subsidiary will offer US$1.26 billion in cash and up to 5.2 per cent of its total outstanding class A ordinary shares. It will also issue up to 0.37 per cent of its shares to Ximalaya's founding investors. As part of the deal, Ximalaya will restructure certain existing businesses. The transaction is subject to regulatory approvals, including antitrust reviews. Ximalaya confirmed the merger in a notice, pledging to maintain its brand, operational autonomy, core management team and strategic direction. The company also assured business partners that existing contracts would be honoured and user rights would be protected. Tencent Music is listed in New York and Hong Kong. Photo: Shutterstock 'We believe this partnership will unlock new opportunities for Ximalaya's users, creators, employees, partners and shareholders,' the statement read.
