Tencent Music published its latest financial results this morning, revealing that its number of ‘online music paying users’ grew by 51.9% year-on-year to 47.1 million people in Q2 2020.
The Chinese streaming giant’s revenues grew by 17.5% to RMB 6.93bn ($981m) while within that, online music subscription revenues grew by 64.7% to RMB 1.31bn ($186m). TME generated a net profit of RMB 939m ($133m) for the quarter.
Note, not every metric was positive: TME’s number of mobile monthly active users for online music fell from 652 million a year ago to 651 million now. However, that does mean a noticeably improved conversion rate: 7.2% of its active listeners now pay (through subscriptions and/or digital album purchases) compared to 4.8% a year ago.
Its monthly average revenue per paying user (ARPPU) has grown from RMB 8.6 ($1.24) to RMB 9.3 ($1.34) over that period.
As usual, TME also gave figures for its ‘social entertainment’ business: karaoke and livestreaming video. It had 236 million mobile monthly active users of those services in Q2 – down from 242 million a year ago – with 12.5 million of them paying in some way.
However, they pay a lot more than the online music users: an ARPPU of RMB 125.6 ($18.06) a month. Thus, social entertainment is still 68% of Tencent Music’s revenues, and online music 32%.