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Tencent has another big move! The online music "Big Mac" is coming.

China Fund newspaper Amman Comprehensive Ginkgo Finance, etc

On December 12, 218, Tencent Music, composed of QQ Music+Cool Me Music+Cool Dog Music+National K Song, landed on the NYSE as a "Big Mac" of online music in China.

Tang Daosheng (chairman of Tencent Music), Xie Guomin (mayor of Kuwo Music) and Xie Zhenyu (founder of Kugou Music) rang the bell of NYSE listing as chairman and co-president respectively.

Three months later, Xie Guomin left her to hold the throne music.

Tencent invested $2 million in Kuwo Music

According to the report of Securities Times E Company, on March 2th, the shareholders of Yilan Online Network Technology (Beijing) Co., Ltd., the development company of Kuwo Music Box, changed. The original shareholder Ocean Music Hong Kong Limited withdrew and a new shareholder Tencent Music Entertainment Hong Kong Limited was added.

Tencent Music has subscribed a capital contribution of USD 2 million, holding 1% equity of Yilan Online Network Technology (Beijing) Co., Ltd..

Xie Guomin, the founder of Ocean Music, also stepped down as the legal representative, chairman and manager of Yilan Online, and was replaced by Yang Jing.

Kuwo Music immediately said that Ocean Music Hong Kong Limited and Tencent Music Entertainment Hong Kong Limited are one company. Ocean Music Hong Kong Limited was renamed Tencent Music Entertainment Hong Kong Limited when TME was established in 216. The shareholders of Yilan have not changed their names, but just changed their names last week. Kuwo Music also said that its organizational structure has not changed.

Tencent organized "QQ Music+Cool Music+Cool Dog Music+National K Song" to go public

In 213, QQ Music and Apple iTunes Store were launched.

two years later, the latter successfully subverted the American online music market and became the largest online music store in the world. QQ music didn't become the king of online music industry in China until 218, among which Xie Guomin of Ocean Music contributed greatly.

Since then, the top three music APPs in the music app market, QQ Music, Kuwo Music and Kugou Music, have merged, and Tencent has also become the major shareholder of the new group through equity swap, accounting for 62.42%. In 217, it was officially renamed Tencent Music.

In 218, Tencent Music went public with a valuation of nearly $21.3 billion, more than doubling the valuation a year ago.

The world's most profitable online music giant

When Tencent Music first went public, there was a market value gap of $2 million between it and Spotify, the world's largest streaming media at that time.

In a blink of an eye, Tencent Music stood out from the global streaming media with a market value of 27.8 billion. Spotify, the big brother of that year, closed at $24.9 billion yesterday.

According to the annual report released by Tencent Music on March 2th, the total revenue of Tencent Music increased by 72.9% year-on-year to RMB 2.76 billion, and the net profit of shareholders increased by 118.5% year-on-year to US$ 67 million.

In the fourth quarter of 218, the total revenue of Tencent Music increased by 5.5% year-on-year to 785 million US dollars, and the net profit of shareholders under non-international financial reporting standards increased by 37.3% year-on-year to 133 million US dollars.

Tencent Music's main operating indicators continued to grow in the fourth quarter, with 27 million paying users of online music services, up 39.2% year-on-year. The number of paying users of social entertainment services reached 1.2 million, a year-on-year increase of 22.9%.

In 218, although Spotify's annual operating income was $6.13 billion, its operating profit was $49.17 million and its net profit was $89.18 million.

"Music+Socialization" to Build an Online Music Empire

In 218, most Chinese stocks listed in the US stock market suffered the fate of breaking on the first day, including not only a large number of educational institutions favored by the market, but also video websites such as bilibili and iQiyi.

Tencent Music is no exception. On the fifth trading day after listing, Tencent Music started a bull market operation after hitting a new low of $11.81. In the past 6 trading days, it once rose as high as 54.7%.

what supports the continuous rise of Tencent music?

From the scale of monthly active users, Tencent Music can be said to "occupy" the domestic online music market. Cool Dog Music, QQ Music and Cool Me Music rank in the top three in terms of monthly users of online music in China, and Netease Cloud Music ranks fourth, while Xiami Music of Ali and Baidu Music of Baidu are far behind Tencent Music.

At present, the average monthly activity of Tencent Music exceeds 7 million, and it has nearly 8% users in the domestic online music market and 9% music copyright in China.

Even though there are many users of Tencent Music, it is difficult to realize it. In 218, mobile online music only brought 5.54 billion yuan in revenue to Tencent Music, accounting for 29%.

so, where does the other 7% income come from? This depends on Tencent's "specialty"-socialization.

The social entertainment section mainly includes national karaoke, live broadcast of cool dog, live broadcast of cool people gathering stars and community business, and the income source is mainly virtual gifts and value-added members from national karaoke.

according to the annual report, the revenue of social entertainment services and other services was 13.45 billion yuan, up 72% year-on-year, accounting for 71% of the total revenue, and the proportion was expanding. The increase in this revenue is mainly due to the revenue growth of the company's online karaoke and live broadcast business.

as early as 216, entertainment social income increased by 5.8% of the total revenue. Considering the absolute leading position of national karaoke in the industry, in the future, the realization of live broadcast will still be an important source of Tencent's music revenue.

Xie Zhenyu & Xie Guomin

Tencent Music can become a "music giant" because of several mergers and acquisitions in the online music industry in the past few years. Behind this, there are two people-Xie Zhenyu, founder of Cool Dog Music, and Xie Guomin, founder of Ocean Music. Now they are both co-presidents and directors of Tencent Music.

According to public information, in 21, Xie Zhenyu founded Soupao Music Network, the first digital music search engine in China.

After surviving the cold winter of the Internet, he founded Cool Dog Music in 24.

at about the same time (August 25), former Baidu chief architect Lei Ming and Huaiqi * * * who returned home after graduating from Stanford MBA co-founded Beijing Kuwo Technology Co., Ltd..

In the following years, Kugou and Kuwo competed on almost the same track, and many users were "stupid and confused" about the two companies. Until 212, a music copyright company was killed.

In June 212, Xie Guomin, former vice president of Sina and head of Sina Music, founded Ocean Music. According to media reports, Xie Guomin, a lawyer, played an important role in Sina's listing in the US with VIE framework.

(Xie Guomin, founder of Ocean Music)

Previously, music piracy on the Internet was rampant and record companies were very sad. Ocean Music seized the pain point of the market, and signed as many long-term exclusive agency copyrights as possible at a relatively low price when the license fee of the record company was low and the money was scarce, thus having a large enough copyright share in the music market.

In December 213, Ocean Music acquired Kuwo Music. In April 214, Ocean Music and Cool Dog Music completed the share swap and merger, forming a new music group. The appearance of the music giant began to appear.

Then, in 214 and 215, a music copyright war broke out, in which Tencent QQ Music and Ocean Music participated.

Unexpectedly, in July 216, Ocean Music and Tencent * * * announced that QQ music business merged with Ocean Music and became a new music group through equity swap. CMC co-CEO Xie Zhenyu and Xie Guomin will be the co-presidents of New Music Group, and Tencent Vice President Cussion Pang will be the CEO of New Music Group. Although after the merger, QQ music, cool dog, cool me and other products and brands will maintain independent development, but they will all be one in the future. In December of that year, the group officially changed its name to "Tencent Music Entertainment Group".

according to the prospectus of Tencent music, at present, Xie Zhenyu holds 4.2% of the shares and Xie Guomin holds 4.1%.

According to the current market value of Tencent Music, the net worth of Xie Zhenyu and Xie Guomin both exceeds $1.

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