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Sony Music Leisure doesn’t usually shout about new offers with streaming corporations within the press.
Which means we frequently must seek for affirmation of its licensing settlement renewals with DSPs in firm filings.
As we speak (Could 13), we’ve got discovered that Sony Music has renewed a multi-year take care of Tencent Music Leisure, the most important proprietor of music streaming platforms in China.
That information was revealed inside the Q1 monetary submitting printed this morning by TME, which operates platforms together with QQ Music, Kugou Music, Kuwo Music, and WeSing.
Sony Music Leisure beforehand inked a multi-year take care of the corporate again in 2021.
China is the world’s fifth-largest recorded music market based on the IFPI.
Sony Music rival Common Music Group introduced its personal multi-year licensing renewal with Tencent Music in January 2024. UMG’s partnership with TME included music streaming in Dolby Atmos and high-definition (HD) codecs.
“We strengthened our partnerships with document labels to additional enrich our traditional music library. Notably, we renewed multiyear contracts with Sony Music Leisure, bringing 360 actuality audio sound privileges to SVIP members.”
Cussion Pang, TME
Apparently, based on Tencent Music’s newest earnings announcement, the Sony Music renewal “introduc[es] the 360 Actuality Audio sound privilege” for members of TME’s pricier tremendous premium (SVIP) tier.
360 Actuality Audio is an immersive expertise utilizing Sony Company‘s “object-based 360 Spatial Sound know-how.”
The format, launched in January 2019, goals to make listeners really feel as if they’re immersed in sound from all instructions.
In line with Sony, “Every sound – whether or not it’s vocals, devices, sound results, or voices – may be positioned in a 360 spherical sound subject with location information,” which, it says, “permits listeners to expertise an immersive, three-dimensional sound subject as supposed by the artists and creators”.
Tencent Music’s SVIP subscribers get entry to enhanced options and unique content material. An SVIP subscription prices round RMB 40 per thirty days, 5 occasions as a lot as a common RMB 8 subscription.
It’s changing into an more and more essential a part of the corporate’s product combine, with TME pointing to its 7.5% YoY ARPPU (Common Income per Paying Consumer) progress in Q1 as being “primarily because of the enlargement of [its] SVIP membership program”.
In line with TME’s newest earnings report, the corporate’s whole variety of paying customers elevated by 8.3% YoYto 122.9 million in Q1 2025, up by 1.9 million versus the prior quarter of This autumn 2024 (see beneath).
TME’s Month-to-month ARPPU grew to RMB11.4 (USD 1.58) from RMB10.6 ($1.47) in the identical interval of 2024.
In line with TME, premium audio high quality stays “a key attraction” of the pricier SVIP tier, with roughly 50% of its SVIP members “actively having fun with this elevated listening expertise”.
Apart from premium audio, TME famous in its submitting {that a} “vary of distinctive perks have confirmed successfully in driving SVIP conversions, together with album reductions, particular badges, and early entry to merchandise and dwell occasions”.
TME additionally mentioned on Tuesday that long-form audio content material has boosted its SVIP retention.
The acquisition, which might considerably increase TME’s audio content material choices past music, is predicted to contain a mixture of money and shares, Bloombergexperiences, citing folks aware of the matter who requested to not be named.
Ximalaya’spresent shareholders reportedly embrace TME’s majority-parent firm, Tencent Holdings, plus Baidu and Sony Music Leisure.
In line with an SEC submitting reviewed by MBW, Sony Music acquired 4.6 million Sequence E-2 most well-liked shares in Ximalaya for a consideration of USD $50 million in 2020.
Elsewhere in TME’s earnings announcement, the corporate revealed that it has inked “prolonged cooperations” with native labels Emperor Leisure Group and Rock Information, “additional elevating [its] music library with immersive Dolby Atmos sound”.
TME additionally mentioned that it “partnered with Dream Music Group to increase [its] catalog with a broader number of widespread Chinese language rap”.
Moreover, to cater to a rising curiosity in Korean, English, and Japanese-language tracks on its platforms, TME famous that it not too long ago “deepened collaborations with South Korea’sStarship Leisure and YGLeisure, alongside Japan’s main ACG leisure firm, additional strengthening our worldwide music choices and enhancing cultural variety throughout our platform”.
TME Govt Chairman Cussion Pang confirmed the Sony Music deal renewal on the corporate’s earnings name on Tuesday.
“We kick off 2025 with a robust first quarter efficiency, demonstrating sturdy top-line progress and stronger profitability,” mentioned Pang. “This underscores the profitable execution of our high-quality progress technique. With the sound foundations we’ve got constructed, a thriving music ecosystem, and wholesome monetary place, we’re effectively outfitted to navigate international uncertainties with confidence.”
He added: “As music turns into extra accessible and customized, we see consumer preferences changing into more and more numerous. Our platform is uniquely positioned to encourage deeper and broader music consumption by means of enriching our ecosystem and increasing suite of companies.
“Let me share a few of the key highlights. First, we strengthened our partnerships with document labels to additional enrich our traditional music library. Notably, we renewed multi-year contracts with Sony Music Leisure, bringing 360 actuality audio sound privileges to SVIP members. We additionally expanded collaborations with Emperor Leisure Group and Rock Information, enhancing the listening expertise with immersive Dolby Atmos sound.”
MBW has reached out to Sony Music for remark concerning the renewal.
The success of TME’s tremendous premium tier is being watched carefully by the worldwide music trade as rival Spotify continues to work behind the scenes on its extremely anticipated “Music Professional” tier, doubtlessly priced at an extra $5.99 per thirty days on high of a Premium subscription.
This higher-priced tier is predicted to incorporate perks like early entry to live performance tickets, AI-powered remix options, and higher-fidelity audio.
Spotify CEO Daniel Ek was not too long ago requested concerning the superfan tier on the streaming platform’s Q1 earnings name. He confirmed that the platform continues to be engaged on it, however indicated that SPOT “want[s] companions to come back to the desk and be a part of this journey”.Music Enterprise Worldwide
