China
Tencent Music Entertainment surpassed revenue of $1 billion in the fourth quarter, representing an 8.2% increase from the prior-year period, while net profit climbed 47.3% to $284 million.
The Chinese music streaming company operates three music streaming services — Kugou Music, QQ Music and Kuwo Music — as well as WeSing, a karaoke app. In recent years, Tencent Music’s business has become increasingly dominated by its music services as its social entertainment business continues to lose business.
Online music revenue grew 16.1% to $799 million due to music subscription gains and growth in advertising revenue, while music subscription revenue jumped 18% to $552 million in the quarter as the number of subscribers increased 13.4% to 121 million. Additionally, gross margin jumped to 43.6% in the fourth quarter from 38.3% in the prior-year period. The company attributed the improvement to strong growth in music subscriptions and advertising revenue and increased usage of owned content, as well as its adoption of the Super VIP program, a subscription tier that costs five times the normal rate. Monthly average revenue per user (ARPU) grew to 11.1 RMB ($1.52) from 10.7 RMB ($1.47) due in part to the expansion of the Super VIP membership program.
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The social entertainment business has suffered a sharp decline since the Chinese government began cracking down on the use of live-streaming apps to enable gambling in 2021. In the fourth quarter, social entertainment revenue fell 13% to $223 million and mobile monthly active users declined 21.2% to 82 million (the number stood at 223 million at the end of 2020). Monthly ARPU fell 9.7% to 70.4 RMB ($9.64), down from 172.1 RMB ($26.38) at the end of 2020, and paying users slipped 3.8% to 7.7 million.
For the full year, revenue increased 2.3% to $3.89 billion while net profit climbed 36.2% to $974 million, and gross margin improved to 42.3% from 35.3%. Online music revenue grew 25.5% to $2.98 billion while social entertainment revenue fell 36.1% to $912 million. Full-year gross margin improved to 42.3% from 35.3% in 2023.
Tencent Music Entertainment’s music platforms have evolved into one-stop shops that also include audiobooks, merchandise, downloads and live-streaming. In 2024, the company produced physical albums for Xiao Zhan and Lay Zhang and boosted album sales for Esther Yu by providing options to purchase merchandise along with her digital albums. It also partnered with the band Mayday for an online New Year’s Eve concert.
The company also announced a $273 million dividend and a share repurchase program of up to $1 billion over a two-year period that will commence this month. A $500 million share repurchase program announced in March 2023 will conclude this month.
Tencent Music Entertainment’s shares, which trade on both the New York Stock Exchange (NYSE) and the Stock Exchange of Hong Kong, had risen 15.8% to $15.12 on the NYSE at the close of trading on Tuesday.
RCA Records Greater China, a division of Sony Music Entertainment, signed a strategic partnership with Chinese indie label and music collective IRIS Chengdu, founded by Chengdu, China-based producer, DJ and recording artist Andre Grant, a.k.a. HARIKIRI. During his career, HARIKIRI has worked with artists including American rapper Jay Park and Chinese hip-hop group Higher Brothers. Over the next year, five albums will be spawned from the partnership, including new releases from female Chinese rapper Vinida Weng, rapper/singer/songwriter Haysen Cheng and HARIKIRI himself, among others. According to a press release, Chengdu “has been widely regarded as the epicentre of China’s evolving hip hop music scene and touted as the city raising China’s new generation of rappers.”
EMPIRE formed a partnership with automated music marketing and promotion platform un:hurd music that includes an investment in un:hurd to support the development of new tools and will give EMPIRE access to un:hurd’s tools and services. The partnership came amid un:hurd’s ongoing fundraise, which has drawn investors including Willard Ahdritz, Dan Runcie’s Trapital Ventures and Mindset Ventures MusicTech. According to un:hurd CEO/founder Alex Brees, the platform boasts a community of more than 125,000 artists and record labels.
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Bria, a generative AI platform for visual images that claims to be built on 100% licensed data, closed $40 million in Series B funding, bringing its total capital raise to $65 million. The money will be used to scale the company’s visual generative AI platform and widen the application of its patented attribution engine to music, video and text generation. The company says its attribution engine “bridges the generative output and the training dataset, so data owners are programmatically compensated according to their overall influence on each generated output,” according to a press release. In a statement, Bria founder/CEO Dr. Yair Adato added, “Enterprises can use our source code and API platform to integrate visual generative AI inside their products and access previously untouchable premium branded content. By broadening our attribution offering to all types of content, including music, video, and text, we are helping to usher in a truly sustainable creative economy.”
Japanese talent management and production company Asobisystem teamed up with blackx, described as a leader in music investments in Asia, to help expand the J-pop genre globally. According to a press release, the companies “will expand artist portfolios, venturing beyond traditional music to explore innovative IP such as cross-industry collaborations, introducing J-Pop to new global audiences and reinforcing Japan’s leadership in the entertainment sector.” Asobisystem’s roster includes Kyary Pamyu Pamyu, Atarashii Gakko!, Fruits Zipper and Yasutaka Nakata.
Synch platform SourceAudio struck a deal with AI-powered music analysis platform Cyanite to integrate Cyanite’s AI music tagging and search capabilities directly into the SourceAudio licensing ecosystem. Through the deal, SourceAudio’s music libraries and content owners can opt in to access Cyanite’s AI tagging and search system within their existing workflows. Cyanite has also chosen SourceAudio as its delivery platform for new and existing customers, meaning all Cyanite users can now benefit from SourceAudio’s hosting and licensing solution, allowing their audio files to be automatically tagged and optimized for search, discovery, pitching and monetization.
Celebrity Coaches, a luxury transportation services provider for the entertainment industry, acquired BandWagon RV Rentals, which specializes in mid-level tour transportation. Terms of the transaction were not disclosed. The acquisition expands Celebrity’s fleet to more than 120 vehicles.
Nightlife and entertainment company Ministry of Sound signed a deal with DICE that will see it leveraging the latter’s mobile-first ticketing technology. Through the agreement, Ministry of Sound will gain access to DICE’s analytics and marketing tools, allowing for real-time insights into audience behaviors, event performance and sales attribution.
The South by Southwest Music Festival has announced that Chinese singer-songwriter Tia Ray will take the stage on March 11 as part of International Nights at Rivian Park. As the only invited artist from mainland China, she will headline the festival and deliver a grand finale performance for music enthusiasts worldwide, alongside international talents such […]
Cloud Music’s revenue from subscriptions grew 22.2% year over year, helping the Chinese music streaming company post a 113% increase in profit, to 1.7 billion RMB ($233.4 million), as revenue increased by only 1%, to 7.95 billion RMB ($1.09 billion), the company announced Thursday (Feb. 20). Revenue from online music services increased 23.1% to 5.35 […]
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Donald Trump met with the CEO of TikTok at his Florida estate, as the social media company is fighting a potential ban in the U.S.
On Monday (Dec. 16), President-elect Donald Trump met with Shou Zi Chew, the CEO of TikTok, at his Mar-a-Lago estate in Palm Beach, Florida. The sit-down comes weeks before the social media company is set to undergo a potential ban in the United States. TikTok made an emergency request before the Supreme Court to block a law that would require the company’s Chinese owner, ByteDance, to sell it off before Jan. 19, 2025. The law was signed by President Joe Biden earlier this year. “The Act will shutter one of America’s most popular speech platforms the day before a presidential inauguration,” TikTok’s lawyers said in the filing. “This, in turn, will silence the speech of Applicants and the many Americans who use the platform to communicate about politics, commerce, arts, and other matters of public concern.”
The emergency application asked for a decision to be made by Jan. 6. Their reasoning for this was so that they could “coordinate with their service providers to perform the complex task of shutting down the TikTok platform only in the United States” if the justices decide to let the ban proceed. A 90-day extension could be enacted if the company is to be sold, but the Chinese government has protested the sale of the algorithm that powers the social media app, and TikTok says that such a sale is impracticable.
Trump previously supported a ban on TikTok but in a press conference later that day, he said that his incoming administration would review the situation. “We’ll take a look at TikTok,” he said. “I have a warm spot in my heart for TikTok, because I won youth by 34 points. There are those that say that TikTok has something to do with that. TikTok had an impact.” Trump’s former solicitor general, Noel Francisco, has represented TikTok in court. Trump joined the platform in June, gaining millions of followers. But his Democratic opponent, Vice President Kamala Harris, did capture the majority of 18-to-29-year-olds who voted in the 2024 presidential election.
In the world of electronic dance music, the West has long led the way with its frequent collaborations, driving technical advancements and making electronic music culture popular worldwide. Inspired by Western electronic music culture, ZHANGYE, in collaboration with Cyanhill Music, has created the CHINA EDM Vol.1 compilation, marking a new chapter in Chinese electronic dance music.
This compilation features not only exclusive tracks from top producers such as BEAUZ, CORSAK, Panta.Q, and WILLIM, but also selects other tracks from hundreds of contributors, showcasing the diversity and vitality of Chinese electronic music.
The release of the CHINA EDM Vol.1 compilation is not only a summary of the development of Chinese electronic dance music, but also a new beginning. Crafted to international standards, it aims to promote the works of outstanding Chinese producers on the world stage. On Nov. 29, this musical feast was spectacularly staged at the Escape deLux nightclub in Amsterdam, Netherlands, under the theme of “CHINA EDM NIGHT,” marking a significant step in the global journey of Chinese electronic music.
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“CHINA EDM NIGHT” was an unprecedented performance featuring “Beats from the East,” bringing the rhythm of the Orient to the Western stage. This event was a live rendition of the CHINA EDM Vol.1 compilation and a significant showcase of Chinese electronic music culture to the world. The performance took place at the renowned Amsterdam nightclub Escape deLux, known for its unique atmosphere and high-quality music events.
To ensure that the “CHINA EDM NIGHT” performance garnered more attention in the Netherlands, the organizers put significant effort into promotion. Offline advertising reached close to 4,000 advertising spaces, including large billboards, metro stations, hotels and public notice boards, promoting the compilation, artists and the event activities comprehensively to ensure that the performance information reached every potential audience member.
The release of the CHINA EDM Vol.1 compilation and the staging of the “CHINA EDM NIGHT” performance mark a significant step for Chinese electronic dance music on the global stage. This is a collective showcase of Chinese electronic music producers, as well as an international dissemination of Chinese electronic music culture.
CORSAK
Courtesy of CORSAK
Chace’s brand-new single “Tunnel Vision” was officially released on Tuesday (Nov. 26), marking his first step into the spotlight as a pop artist and the culmination of two years of preparation.
For Chace, this is not only an exploration of musical styles, but also a significant milestone in his career. Born in 1998 into a musical family in Jiangsu, China, Chace (Zhu Yihan) received professional training in jazz drums and piano from an early age, showcasing extraordinary talent in music. He began producing music at the age of 9 and signed with a Dutch record label at 16, launching his career as a professional musician.
In 2016, he made his debut at Belgium’s Tomorrowland and, in 2017, became the first Chinese artist to perform on Tomorrowland’s main stage, forever changing the presence of Chinese artists on the global music scene. Since then, he has continued to shine as a DJ and producer at top-tier international music festivals such as EDC, Ultra and Creamfields. In 2024, Chace became the first Chinese artist to sign with one of North America’s major record labels, BMG, further showcasing his ability to transcend genres and boundaries with “Tunnel Vision.”
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“Tunnel Vision” is a nostalgic pop electronic track, a tribute to Chace’s musical idol Michael Jackson. The song evokes memories of the golden 1980s, blending distinct rhythms and melodies with an infectious dance groove. Its polished production highlights Chace’s exceptional skills as a producer.
The music video for “Tunnel Vision” is equally innovative, directed and edited by Chace himself. Filmed entirely using an iPhone, it tells an eccentric story set three minutes before a train’s arrival. With its narrative charm, action sequences and high-speed shots, the music video delivers a visually compelling experience, pushing creative boundaries and demonstrating Chace’s burgeoning talent as a filmmaker.
“Tunnel Vision” is now available worldwide, but this is just the beginning of Chace’s musical journey. With more exciting projects on the horizon, he is poised to bring fresh, innovative works to his global audience.
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Hennessy, the world’s largest producer of cognac, now finds itself in the middle of a trade dispute that sparked a strike among the brand’s workers in France. Earlier this week, Hennessy factory staff organized a mass walkout strike to protest a proposed move to shift the bottling of the brandy from France to China.
By way of a New York Times report, Hennessy unveiled plans of bottling its prized product in China to offset the costs of import tariffs, with France’s President Emmanuel Macron requesting of China’s President Xi Jinping to end the tariffs. As the news broke regarding the bottling move, around 500 workers at the company’s factory in southwestern France walked off, which makes up half of its workforce. Thus far, the strike has gone on for two days since beginning this past Tuesday (November 21).
China has imposed tariffs on European brandy, a category cognac does fall under, and the country is one of Hennessy’s top markets. The plan to move the bottling operation is to save the company costs by not paying the hefty tariffs. The tariffs imposed by China are likely in response to the European Union voting to levy higher tariffs on electric vehicles produced by China with France being the leading voice in that charge. Conversely, the European brandy tariffs will deeply affect any brandies made in France.
The strike has spread to other cognac producers, collectively known as the Big Four, which include Martell, Rémy Martin, and Courvoisier. The quartet produces much of the cognac consumed globally. Hennessy says it has no plans to move its entire production to China and will test out the program by sending distilled cognac in vats to bottle there and thus bypassing the brandy tariffs.
The strike has the potential to run longer than a week as both sides continue to hammer down a day to discuss the matter between management and the workers.
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Universal Music Group made a pair of announcements on Wednesday that signal the global leader in music is getting more and more serious about China.
Universal Music Greater China and Modern Sky, a leading independent music label in the country, pressed send on a strategic distribution agreement giving the domestic label’s catalog and artists access to UMG’s global distribution network, fostering collaboration and promoting Chinese music and youth culture internationally.
Additionally, UMGC announced a pact with iQIYI, China’s leading online entertainment platform, to distribute new releases from contestants of reality show The Rap of China 2024 worldwide. This agreement includes support for the rap artists and opportunities for the top three finalists of the iQIYI-produced show to visit UMG’s global music labels and studios, with a goal to foster international collaborations with other artists and producers.
Modern Sky, founded in 1997 by Shen Lihui, has been a key player in China’s indie music scene, producing over 500 albums and working with influential bands and artists. The label’s roster includes over 150 acts, featuring Matt Lv, Aflou, DOUDOU and other established and emerging talents across diverse genres. Modern Sky is also known for organizing the Strawberry Music Festival, China’s first large-scale outdoor music festival, and hosting over 30 festivals and 1,000 performances annually. The label has expanded internationally with divisions in New York, Liverpool and Tokyo, with plans to debut the Strawberry Music Festival in Tokyo in 2025.
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As for The Rap of China, a hit since its debut in 2018, UMGC will dedicate a team to support the narrative-driven show’s artists in A&R, management, marketing and merchandise development.
Timothy Xu, chairman and CEO of UMGC, expressed excitement about both collaborations, highlighting their potential to amplify Chinese music on the global stage. He said the Modern Sky agreement “not only broadens the global reach of Chinese music but also highlights the distinct energy and creativity that define China’s young generation today,” and noted the alliance with iQIYI’s The Rap of China 2024 “reaffirms our commitment to nurturing Chinese rap talent but also extends their global reach, bridging cultural gaps and enriching the international music landscape with the dynamic culture of Chinese rap.”
Modern Sky founder Shen Lihui said his label has “always embraced an independent spirit and a forward-looking vision,” adding they hope to “bring a fresh side of Chinese originality to the world, inviting audiences everywhere to experience the unique energy and cultural depth of China’s youth.”
Earlier this year, UMG expanded its partnership with China-based Tencent Music Entertainment, parent of streaming platforms QQ Music, KuGou, Kuwo and WeSing. In 2021, UMGC became the first major music company to establish multiple frontline label operations across China with the launch of Republic Records China, and the re-launch of historical labels Polygram Records China and EMI China alongside Universal Music China.
Billboard China has officially announced the inaugural Billboard Global No. 1s selection for the China region. In a collaboration with TME Chart — part of Tencent Music Entertainment Group — Billboard China has analyzed the annual performance data from TME Chart, which encompasses the UNI Chart and Wave Chart, to curate a shortlist of 50 […]