What happened: A widely circulated document has brought Tencent Music’s financial performance to light. According to the unofficial report, the streaming service’s revenue in 2016 and 2017 was RMB 5 billion and RMB 9.4 billion, respectively. Its revenue is expected to reach RMB 18 billion in 2018—a 91.5% increase from the year before. The document also revealed that Tencent Music currently has 700 million active users on its platform, 120 million of which are paying subscribers. Tencent has not confirmed the authenticity of the figures.
Why it’s important: The subsidiary of Chinese tech giant Tencent filed for a US listing in early September, reportedly seeking to raise about $2 billion. Tencent Music’s main source of revenue comes from paid subscriptions, live streaming, partnerships, and ads. The company now operates the music streaming services including QQ Music, KuGou and Kuwo, dominating three-quarters of China’s lucrative music streaming market.