Tencent Music Entertainment Group: A Complex Chord in the Global Streaming Symphony
When you think of China, your first thought might not be “rock 'n' roll.” But cue the lights and turn up the volume—because Tencent Music Entertainment Group (TME) is headlining the global music scene. With a stage presence bigger than a stadium tour and platforms more powerful than a double-necked guitar solo, TME is a major act on the global stage—and that's exactly why it's earned a place in the MUSQ Global Music Industry Index ETF (MUSQ).
Meet the Band: TME's Rockin’ Platforms
TME is like the ultimate supergroup—except instead of rock legends, it’s composed of China’s biggest streaming and social music services:
QQ Music – This is the polished lead singer with killer vocals. Think Spotify, but with a deep catalog of Chinese and international tracks, hi-fi streaming, and even exclusive content deals. It combines sleek design with personalized recommendations, making it one of China’s most popular and premium music apps. [1]
Kugou Music – The crowd favorite. Known for its massive user base [1] and regional hits, it’s the go-to for fans of Chinese pop and indie scenes.
Kuwo Music – The specialist. Kuwo is all about DJ-style playlists and music radio. It focuses on providing personalized listening experiences tailored to various daily activities, such as sleeping, driving, working, and studying. It’s got the vibe of a vinyl shop meets a streaming app.
WeSing – The wild karaoke afterparty. WeSing lets users belt out their favorite songs, add filters, and share with friends. It’s TikTok meets The Voice.
Collectively, these platforms command a massive audience, with over 576 million monthly active users. Among them, 119 million are paying subscribers, and a notable 8.4% have opted for the high-end ‘Super VIP’ tier—a premium plan priced at roughly five times the standard subscription rate. (as of Q3 2024) [2]
From Streams to Stadiums: The Full Music Ecosystem
But TME doesn’t stop at streaming. This crew knows how to throw a show.
With TME Live, they’ve hosted virtual concerts for global megastars like Dua Lipa, Mayday, and A-Mei, bringing live-streamed events straight into fans’ hands. Add in music production, artist partnerships, and AI-driven recommendation engines, and you’ve got a company that’s mixing every track of the music experience.
Shredding the Rulebook and Rewriting the Music Biz
Tencent Music Entertainment Group isn’t just playing along with the industry—it’s been shaking up the stage in China with some potentially bold moves. Here’s how TME is turning up the volume:
Multiple Revenue Riffs: TME doesn’t stick to the standard subscription setlist. It’s cranked out a full-on jam session of revenue streams—think social karaoke, live-streamed performances, and virtual gifts from fans. It enables fans to send tips and gifts to artists through it’s MuCoin and Gift System. These gifts, which can be in the form of virtual items or cash, are a way for fans to show their support and can contribute to the artist's revenue. It’s like a digital merch table, fan meet-and-greet, and backstage pass all rolled into one.
Amplifying Indie Artists: Through its Tencent Musician platform, TME’s given independent artists the tools to write, produce, promote, and monetize their own tracks. The result? A scene of original content that’s growing outside the traditional label system.
Tech-Driven Soundcheck: Behind the scenes, TME is mixing in some heavy tech. With AI and big data driving personalized playlists, smart curation, and next-gen features, they’re making sure users don’t just listen—they feel like the platform was built just for them.
How TME Made The MUSQ Setlist
MUSQ aims to invest in companies that are driving the evolution of music around the world—labels, tech platforms, streaming services, and more. TME earns it’s spot thanks to:
It’s market leadership of China’s online music market—home to the world’s largest internet population, with over 1 billion users as of 2025. [3]
It’s aim to have diversified revenue streams (subscriptions, ads, virtual gifts, karaoke).
And it’s innovation—pioneering new formats for social music engagement.
*For a complete list of MUSQ holdings, please click here. Holdings are subject to change.
Curious who else is sharing the stage with TME in MUSQ? Click here for the full lineup: Explore MUSQ >>
[1] Tomala, Lai Lin, Number of monthly active users (MAU) of the leading music streaming apps in China in November 2024, Statista, 2/2/25
[2] Stassen, Murray, MBW Stat Of The Week, Music Business Worldwide, 11/12/24
[3] Internet Users By Country 2025, World Population Review, 4/9/25
MUSQ Global Music Industry Index ETF is offered by prospectus. Carefully consider the investment objectives, risks, charges, and expenses. This and other important information can be found in the MUSQ ETF prospectus, which should be read carefully before investing and can be obtained by visiting https://musqetf.com or by calling 1-855- MUSQ-ETF(687-7383).
Risk Disclosures
There is no guarantee the Fund will achieve its stated objectives.
In addition to the normal risks associated with investing, international investments may involve the risk of capital loss from unfavorable fluctuation in currency values, differences in generally accepted accounting principles or social, economic or political instability in other nations.
Emerging markets involve heightened risks related to the same factors as well as increased volatility and lower trading volume.
In addition to the normal risks associated with investing, investments in small- or mid-capitalization companies typically exhibit higher volatility.
The Fund’s concentration in an industry or sector can increase the impact of, and potential losses associated with, the risks from investing in those industries/sectors.
The Fund is non-diversified.
The Fund is new and has a limited operating history for investors to evaluate. A new and smaller fund may not attract sufficient assets to achieve investment and trading efficiencies.
The Fund may invest in securities denominated in foreign currencies. Because the Fund's NAV is determined in U.S. dollars, the Fund's NAV could decline if currencies of the underlying securities depreciate against the U.S. dollar or if there are delays or limits on repatriation of such currencies. Currency exchange rates can be very volatile and can change quickly and unpredictably.
All investing involves risk, and asset allocation and diversification do not guarantee a profit or protection against a loss. The investment return and principal value of an investment will fluctuate so that an investor’s shares, when redeemed, might be worth more or less than their original cost. ETFs are subject to risks similar to those of stocks, as well as other risks specific to the particular ETF.
ETF shares are traded on exchanges, and are traded and priced throughout the trading day. ETFs permit an investor to purchase a selling interest in a portfolio of stocks throughout the trading day. Because ETFs trade on an exchange, ETF shares are bought and sold at market price (not NAV). The prices of ETFs may sometimes vary significantly from the NAVs of a ETFs’ underlying securities. Brokerage commissions will reduce returns.
Exchange Traded Concepts, LLC serves as the investment advisor. The Funds are distributed by SEI Investments Distribution Co., which is not affiliated with Exchange Traded Concepts, LLC or any of its affiliates.