China leads the world in music streaming, and Tencent has made a lot of contributions

Tencent has three major music streaming software in China: QQ Music, KuGou Music and Kuwo Music. The number of paying users has increased from 5 million in 2015 to 15 million today, and is expected to reach 25 million by 2019.

Editor's note: in the Chinese context, the payment for content is no longer the same as that for music. The reporter expressed her views on China's music payment market in the article "Why China's music streaming is leading the world". Based on the demographic dividend and the popularity of smartphones, music payments are becoming more and more profitable. Of course, the spending power of fans should not be underestimated.

in the view of some, Chinese consumers would rather listen to pirated songs than pay for content. However, the government's crackdown on piracy seems to have paid off. China has become a fertile ground for music and content creation, which can bring profits, and Tencent, one of the giants of the Internet, is far ahead in this respect.

< strong > Tencent is an advocate of the digital music model < / strong >

Internet and language barriers make Chinese people tend to choose Chinese channels and local content. This provides an opportunity for Internet giants such as Tencent, Alibaba and Baidu to become gatekeepers of content.

among the three giants, Tencent has the largest music streaming business, with a market share of more than 77% and a music inventory of more than 1.7 million songs. Tencent has three major music streaming software in China: QQ Music, KuGou Music and Kuwo Music. The three music software operate independently of each other and have different target audiences. Wu Weilin, vice president of Tencent Music Entertainment Group Group, said at a music conference: "most of QQ Music's users live in first-tier cities, while KuGou music and Kuwi music users mostly live in second-and third-tier cities." He also said that Tencent is cracking down on piracy and promised to delete pirated content within an hour.

Tencent's streaming media business is in a stage of rapid growth. According to Wu Weilin, the number of paying users of Tencent Music has increased from 5 million in 2015 to 15 million today, and is expected to reach 25 million by 2019.

< strong > Chinese users will continue to pay for content < / strong >

Wu Weilin's prediction may come true. Half of the Chinese netizens surveyed already have paid behavior or are willing to pay for content. It is not surprising that QQ Music has made a profit while Spotify (the world's largest legitimate streaming music service platform) is still losing money. Brands such as Xiaomi, OPPO and Huawei have promoted the popularity of low-end smartphones, which means more and more consumers have the opportunity to access the Internet. According to a report on Sina Mobile, the cheapest Xiaomi phone costs about $74, while the most expensive phone costs $587, which is $300 cheaper than the iPhone.

the minimum version of QQ Music pays less than $1 a month. Based on China's demographic dividend, such low-price fees can bring considerable revenue to the streaming business.

more and more smartphones and traffic services make streaming media a pastime for many young and lonely, unsettled and unmarried people. Many people do not seem to have a fixed partner, which may be a chain reaction of China's one-child policy, where there are far more men than women. About 1/3 of them are between the ages of 15 and 34 and are more likely to pay for music services.

Jia Wei, vice president of social media Momo, believes that music is a good medicine for loneliness. When they eat dinner, music and related content is one of the many choices.

< strong > the future of streaming media < / strong >

although China's music market is developing well, there are still many other growth areas to be explored. The content of the music library of music platforms, such as Korean pop music, will affect which platform loyal fans choose or what content they pay for.

Lin Si, a graduate student who has stopped chasing Korean Wave, said: "I used Xiami Music because Xiami bought a stake in SM Entertainment." And SM Entertainment is the top entertainment company in South Korea. " Alibaba owns 4 per cent of SM Entertainment and has signed an exclusive distribution agreement. Xiami Music, owned by Alibaba, is a competitor to Tencent.

Chinese fans are an important support for the Korean music industry. On QQ Music, some fans will buy a Korean star album that has entered China hundreds of times just to get a digital medal. The album sells for $0.75 each.

in order to increase Tencent's song inventory, music distributor K-Digital Media announced that it will reach a deal with Chinese companies for 10 million songs at the ICT conference in Seoul in 2017.

World IT Show (South Korea's largest IT fair) provides a platform for Asian technology companies to find Korean content and technology to gain business opportunities. The partnership is led by the Korea ICT Promotion Association's Global ICT Partnership Program (KAIT), which connects Korean startups and foreign partners in the IT industry.

KDM has more than 12 million songs, 10000 movies and music tapes, and creative content including 2000 composers and producers.

< strong > Social Ecology < / strong >

given its performance in Wechat, Tencent's bet on Korean content is worth it. The Korean music industry has successfully integrated with social sharing, making users loyal customers.

South Korean musicians have won high awards in album sales, digital charts, radio charts, YouTube views and netizens' votes. Social media such as Weibo and Twitter are channels for building support and friendships among fans.

linking music to social networking means that more music-related phones will become profitable, including live streaming, various forms of TV shows, advertising, and offline personal activities. This is an endless ecosystem.

websites like QQ Music can already provide paid information such as concert tickets, exclusive content and events. If Tencent continues to earn more Korean songs and content, their control of the Chinese music market will continue.

Edit: mary