Tencent’s music was ordered by Chinese officials to pay a fine, relinquish his right to a home and sell other musical goods.
Tencent Music Entertainment Group confirmed Tuesday that it is being closely monitored by Chinese regulators, adding that it “cooperates” and is committed to complying with all “anti-trust-related” regulations.
This is the first time Tencent’s team has responded publicly.
Reuters also reported last month that Tencent Holdings, which manages music company Tencent Music, had been approached by anti-Chinese trustees to pay a fine, give them all their music rights and sell some of their products. Tencent did not respond then.
Tencent’s actions took place among Chinese people who struggled with online beliefs.
“In recent months, we have received more reviews from those involved, and we have been working hard and liaising with the directors,” Tony Yip, chief technical officer at Tencent Music, told the fundraising conference.
Mr Yip declined to comment or predict the outcome of the negotiations with the regulators, but said “we are committed to following all the rules and regulations, including those involved in the dispute.”
Stages are stressed
On Monday, Sony Music Entertainment announced a digital sharing deal with Tencent Music and NetEase Cloud Music, which ended a special partnership with Tencent Music.
News coverage has dominated Tencent’s shares last month, with Tencent Music dropping more than 14%.
Tencent’s music hits the quarterly profits and profits on Monday, driven by the growth of subscriptions and fundraising from its music promotion platform. But the numbers used each month fell.
The company, called China’s Spotify, has been expanding their music library through a new partnership and a multi-year licensing agreement. This, combined with an effort to differentiate what is available on long-distance television shows and videos, has helped attract more paid users and advertisers.
Despite paying its platform users to jump, monthly users (MAUs) of music and entertainment sites dropped by 6.4 percent and 14.2 percent, respectively.
“Users have stopped growing normal; last year was a high point because of COVID, ”says Tian Hou, an analyst at TH Capital Research.
Profits from shareholders of Tencent Music rose to 926 million yuan ($ 143.94m) a quarter from 887 million yuan ($ 137.8m) last year.
Apart from that, the company acquired 69 yuan ($ 10.7) on American Depository Share (ADS), at rates over 55 yuan ($ 8.5) on ADS.
Remuneration rose 24% to 7.82 billion yuan ($ 1.21bn), while experts expect 7.73 billion yuan ($ 1.2bn), according to an IBES study from Refinitiv.