Tencent Music‘s online music paying users reached 56.0 million in Q4 2020, increasing by 40.4% year-over-year or 4.3 million additional users from Q3 2020, according to the company’s financial results.
Tencent Music’s Paying ratio increased to 9.0%, up from 8.0% in the third quarter of this year and 6.2% in the fourth quarter of last year.
Tencent Musician Platform continued to expand rapidly.
- The number of participating indie musicians continued to grow over 100% year-over-year in the fourth quarter;
- The number of exclusive indie musicians increased by 13 times in the fourth quarter, compared to the same period a year ago;
- The number of original songs uploaded doubled year-over-year, reaching over 1 million by the end of 2020;
As of the end of 2020, efforts to promote diversity and gender equality resulted in nearly 40% of total artists on the Tencent Musician Platform being female, compared with the industry average of around 20% in China.
In January 2021, the Tencent-led consortium in which it has approximately 10% equity interest increased total equity stake in Universal Music Group (“UMG”) to 20%, following the multi-year extension of our licensing agreement with UMG in 2020.
In March 2021, it extended the multi-year strategic licensing agreement with Warner Recorded Music (“WRM”) upon its future expiration.
As part of the extension, Tencent Music also agreed to establish a new joint venture record label in China as well as expand the partnership to a wider range, including the usage of WRM’s content across all our music and entertainment platforms, as well as developing new opportunities in music-for-business solutions and connected devices.
Tencent Music developed long-form audio through a two-pronged approach by integrating with its music applications as well as launching a standalone application, and achieved significant milestones.
It significantly enriched long-form audio content offering with the number of licensed titles increased by 370% year-over-year. MAU penetration increased to 14.8%, from 5.5% for the same period last year, together with a sequential uplift in average daily user time spent on long-form audio.
In January 2021, it entered into a definitive agreement to acquire 100% equity interest of Shenzhen Lanren Online Technology Co, Ltd (“Lazy Audio” or “Lanren tingshu”), to significantly enrich its audio content offering and boost the production of audiobooks.
Tencent Music built an innovative online-merge-offline performance ecosystem to pursue additional growth. It expects to expand TME Live’s coverage beyond top artists and provide performance opportunities to foster a wider range of musicians.
Hosted more than 50 online live concerts since its launch with 25 in the fourth quarter for musicians from home and abroad including aMei, Mayday, Stefanie Sun, Billie Eilish and Tomorrowland.
Total revenues were RMB8.34 billion (US$1.28 billion) in Q4 2020, representing an increase of 14.3% year-over-year.
- Online music service revenues grew by 29.0% year-over-year, up from 25.9% in the third quarter of 2020.
- Revenues from music subscriptions were RMB1.58 billion (US$242 million), representing 41.9% year-over-year growth.
- Advertising services recorded over 100% year-over-year growth in the fourth quarter of 2020.
Net profit attributable to equity holders of the company was RMB1.20 billion (US$183 million). Non-IFRS net profit attributable to equity holders of the Company was RMB1.35 billion (US$207 million).
Its full-year total revenues increased by 14.6% year-over-year to RMB29.15 billion (US$4.47 billion) in 2020.