Tencent Music uses "tipping" to rack up revenues. Why aren't Western music streaming platforms doing the same?


My latest analysis for Music Business Worldwide dives into Tencent Music's IPO filing, which reveal that the company makes only around 30% of its revenue from online streaming services. The other 70% comes from in-app tipping and "virtual gifts" that fans give both to each other and to their favorite artists and live-streamers. The unconventional business model—which sounds more like a mobile free-to-play gaming app than a digital music platform—says a lot about where the future of the music business may be going.


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