Tencent technology news, according to Bloomberg, Tencent holding plans to divest its online music business and be listed in the United States, the latest sign that the long - troubled record industry is coming back.
This will enable us investors to bet on the Chinese music streaming service market and bring new vitality to the industries that are suffering from piracy. The growth of Tencent music in China also reflects the progress of partner Spotify in the United States. In the US market, streaming media technology is helping the fastest growth of music industry output value since the 90s.
For record companies, the recovery helped them rebuild after years of recession. Free download sites have been a heavy hit on the music industry, and iTunes and legal downloads came out at the beginning of this century, and failed to curb the continuing decline in record sales. But now streaming media seems to provide a viable way for music sellers to accept.
The Tencent board of directors announced on Sunday that it had submitted a proposal to the Hong Kong Exchange on its online music and entertainment business to be separated through a registered open sale on the independent stock exchange of the United States. The move was similar to Tencent's holdings last year's spin off of online reading business. Tencent holding music platforms --QQ music, cool dog music, and cool music are becoming popular stars such as Katie Perry and Rihanna, as well as an important tool for local artists such as Joker Xue and Zhang Jie to contact Chinese audiences.
In May, a source told Bloomberg that Tencent music has selected investment banks to provide advisory services for the company's initial public offering (IPO) in the US. Tencent music intends to raise at least $1 billion through initial public offerings.
The Tencent has the advantages of a fully developed entertainment and content Empire, including the ubiquitous WeChat, games, video streaming, Cara OK applications, and the partnership with more than 200 international and domestic record companies. But like long term rivals Alibaba, Baidu and NetEase, Tencent has to deal with the erosion of the pirated industry to the music industry.
Tencent music also views Spotify, which is based in Stockholm, as an investor, but the two companies may increasingly become competitors. At present, Spotify has not only launched its business in China, but also has challenged Tencent in Southeast Asia and other regions.
Spotify was listed in the US earlier this year, and its market value is now 31 billion dollars. According to the financial times in May, the listing of Tencent music could make the company value more than 30 billion dollars.
According to the data released by the American record industry association, American record market sales reached $8 billion 500 million last year, up 17% from the previous year, of which music media took up nearly 2/3 of the market, creating the fastest growth rate in the industry for 23 years.