Tencent Music Reports $1.15 Billion in Q1 Revenue, Strengthening Membership Business via Expanded SVIP Program

Tencent Music Entertainment (TME) disclosed its financial results for the first quarter of 2026, ending on March 31, on May 12, showing total revenue of $1.15 billion (RMB 7.90 billion). This figure represents a 7.3% increase compared to the same period last year. The company is expanding its portfolio beyond music streaming to include diversified revenue streams.

The music-related services segment drove growth during the first quarter. Revenue from this segment reached $944 million (RMB 6.51 billion), marking a 12% rise from the prior year. TME has rebranded this category from “online music” to “music-related services,” encompassing both membership-based revenues and non-membership services.

Revenue from membership services amounted to $662 million (RMB 4.57 billion), reflecting a 6.6% increase year-over-year. TME cited the continuous expansion of SVIP (Super VIP) membership benefits as the key factor behind this growth. SVIP members pay $5.72 per month (RMB 40), which is approximately five times higher than the standard subscription fee of $1.14 per month (RMB 8). During the first quarter, TME appointed Ryan Ding, Ju Jingyi, Liu Yuning, JC-T, and Karry Wang as Super VIP ambassadors. These appointments are part of a strategy to strengthen the premium membership by offering additional perks such as early access to concerts and artist-related merchandise.

Non-membership music services exhibited an even higher growth rate. First-quarter revenue in this category reached $282 million (RMB 1.94 billion), showing a 28% increase from the previous year. The offline concert business served as the main driver of growth in this segment, achieving triple-digit year-over-year growth.

Financial metrics also turned out positive. Adjusted EBITDA totaled $410 million (RMB 2.83 billion), reflecting a 10.5% increase from the prior year. TME stated that it is pursuing a transition toward a membership-based model that provides more immersive music experiences beyond content subscriptions.