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What Spotify can learn from Tencent Music

By TechCrunch

On Tuesday, Tencent Music Entertainment filed for an IPO in the US that is expected to value it in the $25-30 billion range, on par with Spotify’s IPO in April. The filing highlights just how diffeRead full story

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  • I've never used Tencent music, but this ancillary functionality sounds pretty compelling.

  • So many things going on here, it’s like a hybrid network effects model. Tencent has incrementally increased their value proposition with services that offer a unique value for each set of users.

    They built their customer experience around many interdependencies- which have a great ROI but produce an

    So many things going on here, it’s like a hybrid network effects model. Tencent has incrementally increased their value proposition with services that offer a unique value for each set of users.

    They built their customer experience around many interdependencies- which have a great ROI but produce an environment where users can grow emotionally dependent on the community of peers they build. The feeling is not much different than joining a book club and mourning its disbandment (for me).

  • Tencent has cracked a bi-lateral music experience and they’re profiting from the super fans that are willing to spend heavily for more interactions and experiences with the artists they love. Essentially, they’ve created a community. This makes them an immensely sticky platform.

    This is an immensely

    Tencent has cracked a bi-lateral music experience and they’re profiting from the super fans that are willing to spend heavily for more interactions and experiences with the artists they love. Essentially, they’ve created a community. This makes them an immensely sticky platform.

    This is an immensely valuable asset, and while Spotify has tried small experiments of having artists send “gift” songs to listeners, or notified them of a new concert, nothing comes close to what Tencent has done.

    Also, let’s marvel at the fact that Tencent’s music subsidiary is IPOing for $25-30bn. They may have lost a fortune in market value, but they’re still a juggernaut.

  • Very good points. It's also hard to compare because social interactions in China are quite different, but it's true Spotify has missed going deeper into the social aspect of music. Non surprisingly, that part has been taken over by Patreon to name one company. Also worth mentioning that the labels' bargaining

    Very good points. It's also hard to compare because social interactions in China are quite different, but it's true Spotify has missed going deeper into the social aspect of music. Non surprisingly, that part has been taken over by Patreon to name one company. Also worth mentioning that the labels' bargaining power is very different in China than elsewhere.

  • I doubt this means much for Spotify, unless they decide to really muscle in on Tencent's market share or something. As the article even mentions (or at least implies), the US/the broader West and China just have different cultures. At least for now, Spotify (which also has more serious competition than

    I doubt this means much for Spotify, unless they decide to really muscle in on Tencent's market share or something. As the article even mentions (or at least implies), the US/the broader West and China just have different cultures. At least for now, Spotify (which also has more serious competition than Tencent) is providing what America/the West wants, and Tencent is doing the same for China. Neither model is likely to perform very well in the other's homeland.

  • Interesting article.

    These different model made me remind of korean pop music,which is being spread around the globe relatively.

    A friend of mine from Switzerland remarked"the fans are enjoying in different style than a way they enjoy at European band's concert. There are fan's community where you

    Interesting article.

    These different model made me remind of korean pop music,which is being spread around the globe relatively.

    A friend of mine from Switzerland remarked"the fans are enjoying in different style than a way they enjoy at European band's concert. There are fan's community where you can cherish the bond,friendship or share the info.

    I oftentimes hear "the distance between kpop artist and fans". My friend told that she was feeling closer to the artist.

    I guess Tencent are capitalizing these fan's community and stretching the influence in Asia.

  • Lame. I want to listen to music, period. Spotify has covered this for years.

    For free is almost always watered down. Performers want to get paid. Free doesn't do that well.

  • Seems interesting.

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