Tencent Music Entertainment generated $1.32 billion in revenue in the second quarter of 2026, up 5.8 percent year over year, the Chinese streaming company reported August 11 for the three months ending June 30. Its core music-related services division rose 11 percent to $1.12 billion.
Membership subscription revenue rose 8.1 percent to $706 million, helped by continued growth of the company's Super VIP tier, which charges roughly five times the standard subscription price, and by the consolidation of newly acquired audio platform Ximalaya. Tencent Music completed its $2.4 billion acquisition of Ximalaya on May 18, and the platform contributed $60 million to the quarter's revenue.
Marketing and consumption services, the division covering advertising, concerts and merchandise, grew 16.2 percent to $415 million, which the company said reflected robust growth in offline performances; it staged concerts including actor and singer Steven Zhang's first-ever arena tour, New Journey, three fan meetings in Macau for SM Entertainment trainee group SMTR25, and an expanded edition of its own international IP event, TIMA. It also elevated rapper GAI's REAL G tour to stadium scale.
"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," said Cussion Pang, Tencent Music's executive chairman. The company's legacy karaoke and live-streaming division continued to shrink, falling 16.4 percent to $196 million, as music-related services now make up 85.1 percent of total revenue.
Tencent Music also highlighted its AI push during the quarter, integrating song discovery and playlist generation into Tencent's Weixin messaging assistant and upgrading in-app AI agents on its QQ Music and Kugou Music apps, which it described as acting as "personal DJs" creating personalized playlists in real time. CEO Ross Liang called the Ximalaya integration "an exciting milestone that will allow us to deliver an even richer audio experience."
The facts
- Tencent Music's Q2 2026 revenue was $1.32 billion, up 5.8% year on year
- Its music services division rose 11% to $1.12 billion
- Membership subscription revenue rose 8.1% to $706 million
- The company completed its $2.4 billion Ximalaya acquisition on May 18
- Marketing and consumption services revenue rose 16.2% to $415 million, including several arena and stadium tours
- Music services now make up 85.1% of total revenue
- The company integrated AI song discovery into its Weixin messaging assistant
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