QQ Music, China’s version of Spotify is making money
QQ Music may be succeeding where Spotify is failing.
While Spotify is reportedly losing $200 million per year, the Chinese QQ Music is said to be making a profit.
The general manager of Tencent’s music division referred to this at a recent industry forum. Tencent is the parent company of QQ Music.
Here is how QQ’s performance could be out shining that of Spotify’s.
More than just music streaming…
On QQ Music you can do more than just stream music, you can also game amongst other things. It oversees a gaming platform, a social network and the popular WeChat messaging app with its seven hundred million users.
The fact that QQ Music has such an extensive reach within the Chinese population indicates that it has strong negotiating power with record labels.
This could help in securing licensing agreements that are advantageous. QQ Music has an impressive user base of four hundred million active monthly users, whereas Spotify has one hundred million.
The diversity within their service seems to be key in their success. It is an integrated music and entertainment experience. While they offer regular monthly subscriptions, they also sell concert tickets and exclusive song downloads.
This would imply that as a subscriber you will inevitably spend more on QQ than you do with Spotify. They offer an ad free listening experiencing for an affordable $1.60 per month. So, not only do they offer more within their service, the rate at which they are offering this service is pretty impressive too.
It’s not hard to believe that the general manager of their music division knows what he is talking about. In response to this, Pandora has started selling concert tickets and Apple Music is looking to include video offerings. This pales in comparison to what QQ Music is offering though and now the Chinese company has added another angle to the streaming wars.