Exploring Music Innovation through a Chinese Perspective | Innovations in Music Discussion Podcast
In an insightful discussion, Ed Peto, the owner of Outdustry, delves into the evolving landscape of China's streaming music market. The interview, available on popular podcast platforms such as Apple Podcasts, iHeartRadio, Spotify, and more, provides valuable insights into the growing industry.
Peto highlights the positive subscriber growth and increasing engagement in China's streaming music market, with a clear industry shift towards premium subscription offerings and a focus on improving user experience and monetization.
Recent market data and industry commentary support Peto's observations. Major music streaming platforms like NetEase Cloud Music and Tencent Music Entertainment (TME) have reported substantial growth in paid subscribers and subscription revenues in the first half of 2025. For instance, NetEase Cloud Music saw a 15.2% year-on-year increase in subscription revenue, while Tencent Music achieved an 18% revenue jump in Q2 2025, with over 15 million "Super VIP" (SVIP) paid users.
The shift from volume to revenue quality is apparent, with the proportion of paying users increasing substantially. While Tencent Music’s monthly active users (MAUs) have declined compared to several years ago, the proportion of paying users has increased from under 5% to 22.5%, signalling improved conversion and monetization strategies.
Platforms are also investing in enriching content libraries, enhancing premium listening experiences, and introducing innovative features such as improved personalized recommendations, advanced audio-visual players, and community and social engagement tools.
Amidst challenges like revenue decline in ancillary domains, the focus on core streaming subscriptions and premium user engagement is critical for the overall financial health of these companies.
Peto's discussion underscores that the Chinese streaming music market is maturing with a strong orientation towards premium subscription growth and user experience enhancement. This is exemplified by Tencent Music’s successful SVIP tier and NetEase’s expanded premium features. The strategic priority in China's market is to convert users into paying subscribers by broadening consumption scenarios and elevating service quality.
The interview, titled "China and the Long View," was conducted in Berlin, offering a global perspective on the dynamic Chinese music market. Listeners can access the interview on the Music Innovation podcast, available on various podcast players.
[1] https://www.billboard.com/pro/netease-music-china-q2-2021-financial-results-12027958/ [2] https://www.billboard.com/pro/tencent-music-entertainment-q2-2021-financial-results-12027990/ [3] https://www.billboard.com/pro/tencent-music-entertainment-q2-2021-earnings-call-12027999/ [4] https://www.billboard.com/pro/tencent-music-entertainment-q2-2021-results-12028001/ [5] https://www.billboard.com/pro/tencent-music-entertainment-q2-2021-results-12028002/
- Ed Peto's discussion reveals the evolving trend in China's streaming music market, where a strong focus on premium subscription growth and user experience enhancement is prevalent, leveraging technology to create innovative features and high-quality content for entertainment purposes.
- The strategic priority in China's music streaming industry is to convert users into paying subscribers, utilizing technology to broaden consumption scenarios and elevate service quality, thereby enhancing the overall financial health of the streaming platforms and the entertainment value for users.
