Tencent Music takes copyright rules in stride

Tencent Music’s second-quarter profits beat Wall Street expectations on Monday (August 16).

It comes after its advertising business rebounded and more people subscribed to its music streaming platform.

Paid subscribers for the Chinese company’s online music service grew 41% to 66.2 million people – a record high.

Investments in long-form audio and an updated music library helped attract listeners.

It’s welcome for Tencent after a difficult year where its shares lost half their market value.

Investors have been concerned by Beijing’s crackdown on tech giants.

One ruling stopped the company’s parent – Tencent Holdings – from having exclusive music copyright agreements.

But Tencent Music said Monday that China’s copyright rules were unlikely to have a big impact on its online subscriptions.

CEO Liang Zhu told analysts they believed regulators were keen to promote the healthy development of the music industry and the firm fully accepted government policies.

Overall total revenue rose 15% to $1.24 billion.

Most of that came from its social entertainment service – which includes karaoke platforms where users can live stream concerts.

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