The Chinese music market is transforming and it is doing this rather quickly. Long gone are the days when manufacturers thought China's music industry would never rise above its piracy-driven distribution model. Now, the forerunner in this race is music streaming service Tencent Music Entertainment (TME), which looks set to file its Wall Street IPO this week.
The digital music giant’s IPO will be underwritten by Goldman Sachs and Morgan Stanley, and it is estimated to be valued at $30billion. This could mean big changes in the international music streaming industry as Tencent Music looks towards global domination in a business largely dominated by Spotify and Apple.
In December last year, Tencent also took control of a 9.1% stake in Spotify – of which, around a quarter was directly owned by TME. Tencent has also been fighting off stiff competition from Apple for awhile, the company's QQ music is the most popular song recognition app in China and has obliterated its closest competitor Shazam in recent years.
Spotify's IPO was quickly followed by its initial foray into the MENA region's music streaming industry, how will Tencent choose to expand its network?