Digital entertainment titan Tencent continues to drum up its music ambitions. On Tuesday, Tencent Music Entertainment, majority-owned by Tencent with a 55.6% stake, announced establishing a new joint label with its licensing partner Universal Music Group to discover, develop and promote Chinese artists domestically and to the world.
TME, which spun off from Tencent and went public in the U.S. in 2018, commands the lion’s share of China’s music streaming industry through three apps — QQ Music, Kugou and Kuwo. It also operates other music-related businesses, including live events and a popular karaoke app.
651 million users streamed music through TME services in the second quarter, but only 47.1 million were paid subscribers, signaling a much lower conversion rate compared to Spotify, which did