At the end of the quarter, QQ Music’s daily video views and viewers reached 100mm and 18mm respectively, representing triple-digit annual growth.
Music streaming services may bear the name “music” but are increasingly “pan-entertainment,” a term TME used to describe competitors that lured away its “casual users” and caused monthly average users to drop from the second quarter. (Music users’ average revenue per user slid to 8.9 RMB ($1.39) from 9.4 RMB ($1.47) in the prior-year period.)
In addition to focusing on videos, TME is building its live-streaming business, used by 10,000 musicians by the end of the third quarter, and long-form audio — audiobooks, podcasts — that reach 140 million users monthly, up 89% increase year over year, and over 5 million paying users, up over 100%.
Q3 Financials
- Revenue: 7.8 billion RMB ($1.2 billion), up 3% y/y
- Net profit: 788 million RMB ($122 million), down 37% y/y
- Music subscription revenue: 1.9 billion RMB ($295 million), up 24.3% y/y
9 Month Financials (Q1 to Q3)
- Revenue: 780 billion RMB ($673 million), up 64.9% y/y
- Operating profit: 116.4 billion RMB ($98.1 million), up 29.4% y/y
- Net income: 87 billion RMB ($73 million), up 44.1% y/y
