A better than expected quarterly revenue was announced on Tuesday by China’s Tencent Music Entertainment Company as it attracted more paying subscribers to its music streaming service, at a time when people are mostly homebound because of the COVID-19 pandemic.
Its sales grew from 6.51 billion yuan ($910 million) last year to 7.58 billion yuan (£865 million) in the third quarter ended Sept. 30, paying subscriptions to the company’s streaming music service soared 46 percent to 51.7 million.
The findings come at a moment when the organisation reflects on its goal of placing over 20 percent of its content behind the paywall on the subscription platform by the end of the year and increasing the base of paying subscribers, all at a time when consumers have focused heavily on social media and entertainment applications since the pandemic.
Chief Marketing Officer Tony Yip of the group said that the retention rate of paid customers continues to increase, and Tencent Music used packaged discounts and incentives to capture and “lock in” long-term subscribers.
Although most of the users of Tencent Music are in its music streaming unit, social entertainment sites, including karaoke sites, where users can live stream concerts and events, are the main revenue generators of the company.
Yip said the company recently upgraded the architecture of the user interface and other changes on its WeSing social entertainment platform to “help users produce more and more quality content.”
In recent months, Tencent Music has also signed and extended licencing agreements to add bands such as The Weeknd and Paul McCartney to its library with international and regional labels such as Kobalt Music Group and Merlin Network.