Chinese web giant Tencent has set its eyes on music streaming with an investment in domestic China Music Corp (CMC).
Tencent, a leading messaging, social media and gaming company upped its stake in CMC from 16 per cent to 60 per cent as it looks to bolster its credentials as an entertainment giant.
With CMC valued at around $2.7bn, the move underlines Tencent’s confidence that music streaming is the dominant business model for the industry – at least in that region.
CMC has streaming services, Kuguo and Kuwo, meanwhile Tencent owns QQ Music – the three companies collectively represent over half the domestic market (56 per cent), according to iiMedia Research.
The Wall Street Journal claims that the combined businesses are now worth $6bn.