Tencent Music Entertainment is the dominant domestic force, and it’s finances reflect some of the key differences for China’s market. Only 29.6% of its revenue in H1 2018 came directly from online music platforms. The remainder came from music-centric social entertainment services such as karaoke apps or live-streamed video. Those businesses generate revenue through tips and gifts from fans to performers.
The market represents a unique and challenging prospect for digital platforms. China is dominated by domestic players, and it only began enacting copyright laws in the 1990s. That means piracy was more common but has declined quickly as the Chinese tech platforms start partnering with the major music labels. “In just seven years, China went from the most piracy-heavy market in the world to the point where 96% of consumers listen to licensed music,” the post said. Soundcharts noted that efforts to shift business models in music will face challenges in convincing fans to pay up where they’re been listening for free.