TME Q3 2024: Subscription Growth Offsets Decline in Monthly Active Users
Tencent Music Entertainment (TME) reported mixed financial results for the third quarter of 2024, characterized by strong subscription growth alongside a decline in overall user engagement. Online music service revenue surged 20.4% year-on-year to RMB 5.48 billion, driven by a 15.5% increase in paid subscribers to 119 million and a rise in average revenue per paying user. However, total monthly active users (MAUs) decreased across key segments. Online music MAUs fell 3% to 576 million, while social entertainment MAUs dropped significantly by 30.2% to 90 million. This steep decline in the social entertainment sector, which includes karaoke and livestreaming, resulted in a 23.9% revenue drop for that segment. TME attributed these changes to strict compliance measures and content restructuring implemented since mid-2023, aimed at reducing reliance on social entertainment. While the company successfully converted users into paying subscribers, the shrinking user base highlights ongoing challenges in retaining broader audience engagement amidst regulatory adjustments.
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TME Q3 2024: Subscription Growth Offsets Decline in Monthly Active Users
Tencent Music Entertainment (TME) reported mixed financial results for the third quarter of 2024, characterized by strong subscription growth alongside a decline in overall user engagement. Online music service revenue surged 20.4% year-on-year to RMB 5.48 billion, driven by a 15.5% increase in paid subscribers to 119 million and a rise in average revenue per paying user. However, total monthly active users (MAUs) decreased across key segments. Online music MAUs fell 3% to 576 million, while social entertainment MAUs dropped significantly by 30.2% to 90 million. This steep decline in the social entertainment sector, which includes karaoke and livestreaming, resulted in a 23.9% revenue drop for that segment. TME attributed these changes to strict compliance measures and content restructuring implemented since mid-2023, aimed at reducing reliance on social entertainment. While the company successfully converted users into paying subscribers, the shrinking user base highlights ongoing challenges in retaining broader audience engagement amidst regulatory adjustments.
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