On November 12, Tencent Music Entertainment Group released its financial report for the third quarter and reported positive results, highlighted by substantial growth in the number of paying users, and the record-setting success of Jay Chou’s new single “Won’t Cry.”
According to the financial report, Tencent Music’s total revenue in the third quarter that ended on September 30 amounted to 6.51 billion yuan, up 31.0% year-on-year. The company’s net profit was 1.03 billion yuan, up 6.4% year-on-year, and the figure was higher than the 927 million yuan of the previous quarter.
During the quarter, the amount of people who paid for Tencent Music’s online services continued to increase, reaching 35.4 million, a year-on-year increase of 42.2%. The increase in the number of online payers was reflected in the income of online music services, which increased from 1.46 billion yuan last year to 1.85 billion yuan, marking a 26.2% rise.
Famous Chinese pop star Jay Chou’s newly released single “Won’t Cry” made a visible impact as it became the highest selling digital single in the history of the Tencent’s QQ Music platform. Two days after its release, the single sold 6.66 million copies on QQ music, reeling in 20 million yuan.
Jay Chou’s new song release also led to an increase of user activity on Tencent Music’s karaoke software, which allows users to record covers of their favorite songs. Tencent Music said that 10 days after the song was released, it accumulated more than 12 million covers on the platform.
In order to further stimulate users in the months to come, Tencent Music plans to target younger user groups, by establishing contacts with colleges and universities, launching comics and games, and using specific promotions and marketing campaigns targeting a younger audience.