Credit: TMETencent Music says that it supported actor and singer Steven Zhang's first-ever arena tour, New Journey.
China-headquartered music streaming company Tencent Music Entertainment generated total revenue of RMB 8.93 billion (USD $1.32 billion) in the second quarter of 2026, up 5.8% YoY.
That’s according to the company’s Q2 earnings report, published on Tuesday (August 11), for the three months ending June 30.
TME‘s overall quarterly revenues were driven by an 11.0% YoY rise in the company’s music-related services division, which generated RMB 7.61 billion (USD $1.12 billion) in Q2.
Membership services revenue, meanwhile, covering music streaming subscriptions and other paid membership programs, rose 8.1% YoYto RMB 4.79 billion (USD $706 million).
The company’s SVIP (Super VIP) program is a higher-priced subscription tier, and TME has previously said those subscribers pay approximately RMB 40 (USD $5.90) per month, compared to the standard subscription price of RMB 8 (USD $1.18) – roughly five times the revenue per user.
TME attributed the membership growth partly to the consolidation of newly acquired Ximalaya and to continued expansion of its Super VIP tier.
TME completed its USD $2.4 billion acquisition of Ximalaya on May 18, folding the Chinese audio platform into its consolidated results for the first time.
Ximalaya generated RMB 407 million (USD $60 million) in revenue for TME during the quarter, meaning the group’s top-line growth was partly inorganic.
TME’S Q2 2026 IN SUMMARY:
Tencent Music Entertainment’s overall revenues were up 5.8% YoYto RMB 8.93 billion (USD $1.32 billion) in Q2 2026;
Music-related services revenues were up 11.0% YoY to RMB 7.61 billion (USD $1.12 billion).
Within that figure, membership services revenues were up 8.1% YoYto RMB 4.79 billion (USD $706 million).
Marketing and consumption services revenues were up 16.2% YoYto RMB 2.81 billion (USD $415 million).
Adjusted EBITDA was up 5.2% YoY to RMB 3.25 billion (USD $480 million).
TME again did not disclose subscriber numbers, monthly active users, or average revenue per paying user – metrics it discontinued reporting following its full-year 2025 results in March.
When TME reported those full-year 2025 results, it revealed that its Super VIP tier had surpassed 20 million subscribers, up from 15million at the end of Q2 2025 and 10million in Q3 2024.
At that time, the company reported total paying music subscribers of 127.4 million as of Q4 2025.
TME said new SVIP benefits during the quarter included digital albums and tailored gift packages for artists and groups including aespa, RIIZE, RENJUN, and Lay Zhang.
On the content side, TME noted that it made a strategic investment in THE BLACK LABEL, the South Korean label behind tracks on the KPop Demon Hunters soundtrack.
TME also deepened its partnership with China’s Dream Music Group, securing first-release windows for the label’s top artists.
Beyond membership services, TME‘s marketing and consumption services line, which spans advertising, offline performances, and artist merchandise, grew 16.2% YoYto RMB 2.81 billion (USD $415 million).
TME said revenues from offline performances achieved “robust year-over-year growth”, as it staged concerts for several of its strategically partnered artists.
The company hosted three fan meetings in Macau, China, for SMTR25, a trainee group under SM Entertainment, and scaled up its proprietary international IP event, TIMA, to a larger venue.
The company also produced releases for artists including Zhou Shen, whose Blaze into Bloom featured among the quarter’s hits, and elevated rapper GAI‘s REAL G tour to stadium scale.
Revenue from social entertainment services and others, TME‘s legacy karaoke and live-streaming division, continued to decline, falling 16.4% YoY to RMB 1.33 billion (USD $196 million).
Music-related services now account for 85.1% of TME‘s total revenue, extending a shift that has seen the company pivot toward concerts, merchandise, and membership programs, as its first-quarter results also showed.
“AS THE INDUSTRY EVOLVES, WE CONTINUE TO CHAMPION COPYRIGHT PROTECTION, FOSTER A HEALTHY ECOSYSTEM, AND SAFEGUARD THE VALUE OF CREATIVE WORK.”
CUSSION PANG, TME
Cussion Pang, Executive Chairman of TME, said: “Our second-quarter results reflect the continued strength of our content-and-platform strategy.
“Concerts, merchandise, and other IP-driven experiences drove another quarter of solid growth in our marketing and consumption services, underscoring our ability to unlock greater value from premium music IP.
“Our expansion into digital audio through the integration of Ximalaya broadened our reach and enriched our ecosystem.
“As the industry evolves, we continue to champion copyright protection, foster a healthy ecosystem, and safeguard the value of creative work.”
On the ESG front, TME said it enhanced Youth Mode across its core products in the quarter and introduced a curated, age-appropriate content library for younger users.
“THE ADDITION OF XIMALAYA IS AN EXCITING MILESTONE THAT WILL ALLOW US TO DELIVER AN EVEN RICHER AUDIO EXPERIENCE AND SERVE OUR USERS MORE EFFECTIVELY.”
ROSS LIANG, TME
Ross Liang, CEO of TME, said: “Amid a rapidly evolving market, we remain steadfast in building an ecosystem where our users can discover, connect, and be inspired through music and audio experiences.
“Our focus on differentiated content and a vibrant community continues to deepen engagement with our core users, and SVIP membership continues to grow.
“The addition of Ximalaya is an exciting milestone that will allow us to deliver an even richer audio experience and serve our users more effectively.
“Together, we are shaping the future of music and audio entertainment and unlocking long-term growth.”
TME also highlighted AI in its earnings report, saying it integrated with Tencent’s Weixin XiaoWei assistant during the quarter, letting Weixin users discover songs and generate playlists, and separately upgraded the in-app AI agents on its QQ Music and Kugou Music apps
TME described its upgraded AI agents as acting as “personal DJs” that create personalized playlists in real time.
TME said it also strengthened music distribution through Tencent’s Weixin Video Accounts and used Weixin Pay to drive traffic to lightweight apps such as Bodian Music and Kugou Concept.Music Business Worldwide
