BUSINESS

AI Music Boom Tests Tencent Music’s Business Model

Published: Mar. 17, 2026 11:56 p.m. GMT+8

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Tencent Music Entertainment's QQ Music. Photo: VCG

AI-generated songs are rapidly reshaping the music industry and adding a new test for streaming platforms, the chief of Tencent Music Entertainment Group said, as the company reported slower growth in its latest quarterly results.

CEO Liang Zhu said during a Tuesday earnings call the company is seeing “explosive growth” in AI-generated songs, underscoring how the technology is beginning to change content supply and monetization.

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Tencent Music reported Q4 2023 revenue of 8.64 billion yuan ($1.2 billion, up 15.9% year-on-year) and non-IFRS net profit of 2.49 billion yuan (up 9%).
AI-generated songs are growing rapidly, altering music content creation and monetization, with over 150,000 musicians and 10 million users engaging via its AI platform.
Q4 online music users fell 5% to 528 million, while paying subscribers increased 5.3% to 127.4 million.

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Who’s Who

Tencent Music Entertainment Group: Tencent Music Entertainment Group (TME) is experiencing "explosive growth" in AI-generated songs, according to CEO Liang Zhu. The company reported slower growth in its latest quarterly results but is embracing AI's potential for user-generated content and platform engagement. TME's AI creation platform has attracted over 150,000 professional musicians and 10 million users. Despite a shrinking user base, paying subscribers for online music increased.

Tencent: Tencent, through its subsidiary Tencent Music Entertainment Group (TME), is actively engaging with the "explosive growth" of AI-generated songs. While TME acknowledges the revenue-sharing complexities and user base fluctuations this trend brings, it is integrating AI into its platforms. For example, QQ Music now uses Tencent's AI application Yuanbao, and TME's AI creation platform has attracted over 150,000 professional musicians.

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What Happened When

Fourth quarter of 2025：: Tencent Music’s revenue grew 15.9% year-on-year to 8.64 billion yuan, non-IFRS net profit rose 9% to 2.49 billion yuan; online music monthly active users fell 5% year-on-year to 528 million, a sequential drop of 23 million; paying subscribers for online music grew 5.3% year-on-year to 127.4 million, an increase of 1.7 million from the previous quarter; revenue from online music services segment rose 21.7% to 7.1 billion yuan; social entertainment business revenue fell 5.2% to 1.54 billion yuan.

Full year of 2025：: Tencent Music’s revenue rose 15.8% to 32.9 billion yuan, non-IFRS net profit jumped 25% to 9.59 billion yuan.

March 17, 2026：: Tencent Music Entertainment Group CEO Liang Zhu discusses explosive growth in AI-generated songs during the company's earnings call.

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