Original title: Jay Chou “helped” Tencent Music's three quarterly reports of paid subscribers increased by more than 40% year on year Source: CICC Online
Original title: Jay Chou “Helped” Tencent Music's three-quarterly reports of paid subscribers increased by more than 40% year-on-year
The release of Jay Chou's new songs, which had top traffic, played a positive role in boosting Tencent Music's digital album sales. At 23:00 on September 16 this year, Jay Chou's single “Say Yes, Don't Cry” sold 6.66 million copies on QQ Music alone, with sales of nearly 20 million yuan.
On November 12, Tencent Music Entertainment Group released financial results for the third quarter ended September 30, 2019. Financial reports show that in the third quarter of 2019, Tencent Music Entertainment's total revenue was 6.51 billion yuan, up 31.0% year on year; net profit was 1.03 billion yuan, up 6.4% year on year, and net profit for the third quarter of this year was higher than 927 million yuan in the previous quarter.
In terms of paying online music users, Tencent Music's performance is also impressive. Financial reports show that in the third quarter of 2019, Tencent Music Entertainment Group's online music payers reached 35.4 million, an increase of 42.2% over the previous year. On a month-on-month basis, the company's net increase of 4.4 million paying users was higher than 2.6 million in the second quarter of the same year and 1.4 million in the first quarter, continuing the recent trend of accelerated growth.
Meanwhile, mobile MAU (number of monthly active users) of online music services also maintained an upward trend. The MAU for the quarter was 661 million, an increase of 0.9% compared to 655 million in the same period last year.
The increase in the number of online payers is directly reflected in Tencent Music's revenue reports. In the third quarter of this year, Tencent's online music subscription revenue was 942 million yuan, an increase of 48.3% over the previous year.
Among them, Tencent Music has obtained exclusive copyrights from singers with a large number of listeners, such as Jay Chou, which has contributed a lot to the growth of the music platform's online music service revenue and paid users. The release of Jay Chou's new songs, which had top traffic, played a positive role in boosting Tencent Music's digital album sales. At 23:00 on September 16 this year, Jay Chou's single “Say Yes, Don't Cry” sold 6.66 million copies on QQ Music alone, with sales of nearly 20 million yuan. At the same time, this single is also the highest grossing digital single in the history of the QQ Music platform, and the first digital single to break through the Golden Diamond Records certification. Singers like Jay Chou and Talor Swift, who have a large audience, choosing a platform can even have the effect of migrating users.
It is worth noting that the release of Jay Chou's new song also boosted the activity of users of Tencent Music's K-song software. Tencent Music said in its earnings report that in the 10 days after the song was released, it had accumulated over 12 million K-songs recorded.
At the same time, exclusive singer copyright also plays a big role in Tencent Music's main revenue pillar — revenue from social entertainment services and other services. In the third quarter of 2019, Tencent Music's revenue from social entertainment services and other services was 4.66 billion yuan, up 32.9% year-on-year, compared to 3.51 billion yuan in the same period last year. According to financial reports, this revenue was mainly driven by the growth of online karaoke and live streaming services. The number of people paying for this section increased by 23.2%, and ARPPU (revenue from each paying user) increased by 7.4%. In addition, Tencent Music also continued to make efforts in this part of the business this quarter. Tencent added new social and gamification features to the K-song social entertainment program to promote connections between users. The gap between this portion of revenue and that of online music services is still widening.
Hu Min, chief financial officer of Tencent Music, mentioned in the third quarter earnings conference on November 12: “The release of the new album has doubled Tencent Music's digital album revenue this quarter compared to the third quarter of last year.”
Looking at Tencent Music's entire content ecosystem, in addition to expanding songs, the company has also begun expanding into audio, PGC, and UGC short videos. Currently, several major music apps are being tested. In the context of increasingly fierce competition in streaming media, music platforms are constantly expanding their reach.
Peng Jiaxin, CEO of Tencent Music Entertainment Group, also said in today's third quarter earnings conference: “Thanks to the continued healthy development of the online music and social entertainment business, we have a steady performance in the third quarter of 2019. Among them, we are very happy to see that online music payers achieved an accelerated growth of 42.2% year-on-year, and the number of paying subscribers increased by a net of 4.4 million in the third quarter, all of which hit new quarterly highs.”