YY, the online interactive video platform, reported another strong quarter yesterday. Revenues from online music show business still saw a strong growth, 228%, in the quarter that reached RMB383.1 million (USD61.6 million), thanks to a 103% year-over-year increase in paying users which has reached 1 million. 5% of paying users contributed about 70% of the revenues.

According the report released by Chinese ministry of culture (CCNT), in 2013 about half of the digital music revenues generated on PC-based Web in China was through online singing performance platforms like YY Music. YY Music has a lot of competitors, some of which reportedly are even more profitable. The CCNT report estimates that the online singing show market will reach RMB8.5 billion (about $1.4bn) in 2015.

The music show business generates money mainly from virtual gifts bought by audiences to present singers. This business model, YY said, works well on mobile too that sales increased 180% to RMB29 million than that in the previous quarter when paid virtual items were introduced onto its mobile app. 24% of paying users on its interactive platform made payments through mobile.

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Tracey Xiang

Tracey Xiang is Beijing, China-based tech writer. Reach her at traceyxiang@gmail.com