Affected by the epidemic in 2020, many concerts were cancelled one after another. It is a pity for fans not to be able to witness the elegant demeanor of idols, and for musicians, it is also sad to lose the opportunity to communicate with fans. But the music can't stop, so Tencent Music launched TME Live super live performance, through the form of online Live to rebuild the communication bridge between fans and singers, and reshape the traditional concert business model.

Tencent Music has also gained more and more traffic in wave after wave of big-name concerts, and the company's share price has also risen all the way after the first quarterly report, with a total market capitalization of $26.8 billion.

First, online concerts are popular in moments, and the platform establishes a bridge for users to communicate.

Once TME Live was launched this year, it has received a lot of praise. The multi-scene and innovative performance mode brings users a high sense of immersion and high-quality performance experience. at the same time, on-screen comments and comments online also strengthen the interaction between singers, fans and users. it further strengthens the virtuous circle between online music and social entertainment on the platform.

On the last day of May, May Day held an online concert with TME Live and placed glow sticks on every seat in the empty gymnasium, fulfilling the May appointment under special circumstances. More than 35 million people watched the concert that night, far more than a gymnasium could hold. Since the beginning of this year, many musicians such as Liu Ruoying, Xu Jiaying and Eason Chan have brought online performances on TME Live, which have become popular in moments.

In fact, TME Live was originally planned to be launched in the second half of the year, but it was released in advance due to the epidemic, but once it was launched, it showed a professional level, met the needs of users for live concerts, and allowed musicians and performers to return to their normal working pace. At the same time, reviewing the company's first-quarter results, TME Live has also become a bright spot of the company's business, bringing a large number of topics and traffic to the platform.

Second, the number of users increased significantly in the first quarter, and the payment rate increased steadily.

In the first quarter of 2001, the number of paying users of Tencent Music's online music reached 42.7 million, an increase of 50.4 percent over the same period last year, while the payment rate reached 6.5 percent, significantly higher than the 4.3 percent of the same period last year. The number of paying users of social entertainment users reached 12.8 million, an increase of 18.5 percent over the same period last year. At the same time, the ARPPU of the two businesses also remained at a stable level, and the overall MAU of the platform grew healthily.

In terms of revenue, due to the impact of the epidemic, the interactive functions of the platform were forced to adjust in the first quarter, and the growth rate of social entertainment business revenue slowed down. however, the growth of online music revenue greatly boosted the entire platform, up 27.4% from the same period last year. The driver is mainly from users' music subscriptions and advertising revenue, of which music subscription revenue reached 1.21 billion yuan, an increase of 70 percent over the same period last year.

The company will release its latest results after trading on Aug. 10, US time. Bloomberg expects Tencent Music's Q2 revenue to be 6.871 billion yuan and net profit to be 1.108 billion yuan.

III. The copyright war continues, and the competition for Douyin entry is fierce.

At present, the online music platform in addition to adding Live, singing, social and other functions, the copyright war continues, and there is another big guy.

Douyin has talked about copyright with Sony Group Corp, Universal and Warner since 2018, and later partnered with Modern Sky and other record companies. Moreover, byte Jump also acquires overseas music video applications and mining music directors to obtain copyright. With the popularity of short videos and the enrichment of content, these companies' struggle for music copyright will not end easily. In this way, Tencent Music needs to invest constantly if he wants to maintain his advantage in copyright.

Conclusion

In the first quarter, Tencent Music acquired Qiaoshui to increase its holdings by 9.29%, with a market value of US $727000. With the release of the company's new earnings report, investors can see the data results of platform users driven by these rounds of Live and evaluate Tencent Music's current and future liquidity ability.