Original title: Tencent Music returns to Hong Kong for secondary listing (theme)
——Executive Chairman Peng Jiaxin on TME’s “methodology” and “core drive” (subtitle)
Tencent Music landed on the Hong Kong Stock Exchange on September 21, and the management team rang the bell simultaneously in Hong Kong and Shenzhen. From left to right: Chief Strategy Officer Ye Zhuodong, Executive Chairman Peng Jiaxin, Chief Financial Officer Hu Min, and CEO Liang Zhu.
On September 21, the time on the display of the Hong Kong Stock Exchange began to count down. When the number jumped to 1, Peng Jiaxin, executive chairman of Tencent Music Entertainment Group, and the management team waved their drumsticks and struck the gong. The whole process In one go, bells and applause sounded at the same time, Tencent Music was officially listed on the Hong Kong Stock Exchange, code 1698.
Although he was interviewed during the busy business period during the listing period, Peng Jiaxin still chose to use video instead of voice, which is a work habit he developed after the epidemic. In his view, in online meetings of cross-regional teams, team members look into each other’s eyes and communicate, which is more likely to infect emotions and reach the heart like music.
It’s hard to imagine that during the whole interview, the most smiling, quick-thinking, fast-talking Peng Jiaxin said “sink down”. He said that he and his team are running a “music marathon”. Whether it is a time of drastic breakthrough in the barrenness, or when the entire Internet industry gradually enters the deep water area and starts continuous deep cultivation, he and the team must always maintain “running in peace”. ,be oneself”.
Past performance confirms the success of this methodology. With more than 800 million monthly active users, it was listed on the New York Stock Exchange as the first Chinese music streaming media company in 2018. Tencent Music Entertainment Group (hereinafter referred to as “TME”) has become one of the most influential music platforms in the world.
Now, TME, which has returned to Hong Kong for a secondary listing, is standing at the starting point of a new story. What did it do right in its past experience? Where will TME’s management team lead this giant ship? A reporter from Economic Information Daily conducted an exclusive interview with Peng Jiaxin, Executive Chairman of TME.
Confidence: Let the value become the dependence
Obviously, compared to the first listing on the New York Stock Exchange, the management team of TME at this time was more calm.
During the days of preparing for the secondary listing, Peng Jiaxin flipped through hundreds of pages of the prospectus. He sighed to the reporter of “Economic Information Daily”: “I have seen the history of TME’s establishment for six years and its listing for more than three years, and I have also seen the long and tortuous road that Chinese music has gone through in the past ten years. I am very pleased that our The team has done so many things that make sense for the industry over the years.”
The most far-reaching significance of this is TME’s promotion of the legalization of music and its continuous leadership in the recognition of the value of music by consumers.
As early as 2014, Tencent has begun to lay out the legalization of digital music and the construction of a business model. At that time, the music industry was in a chaotic era of piracy. In the face of doubts, the TME team decided to “sink down” and believed that the return of commercial value was the cornerstone and reliance of the industry. TME insiders told reporters that many of Tencent Music’s early copyright cooperations were made by the company’s core team, who regained confidence and talked earnestly with record companies one by one.
TME pioneered the online music subscription model in China, and the online music service payment rate has grown for 13 consecutive quarters, from 4.2% in the fourth quarter of 2018 to 13.3% in the first quarter of 2022.
Leading the innovation of “licensed” and digital music business models, the TME team has affirmed its confidence in future development, laid a solid foundation for the entire Chinese music industry, and earned it “pragmatic” praise in the industry.
Up to now, TME is the only profitable streaming media group in the world. After three years of listing, the number of TME online music paying users has increased from 24.9 million to 82.7 million. The rigorous and pragmatic management style of the TME team is also reflected when the industry generally talks about “how to cross the cycle”. The second quarterly report shows that the company holds a cash reserve of 25.8 billion yuan. In the process, more and more music industry practitioners have grown. The results of these positive operations have given TME the confidence to continue “long-distance running” and the elegance of TME’s secondary listing in the form of introduction.
Peng Jiaxin told the “Economic Information Daily” reporter, “Listing in the form of introduction does not involve financing, does not issue new shares, and does not dilute the interests of existing shareholders, just to give investors enough confidence and provide investors with more. The choice of trading venues and more flexible trading hours allow investors who are bullish on the online music entertainment industry to invest in a more convenient and secure way.”
Strategy: Make content accessible
During the interview, the reporter felt the common characteristics of many TME staff – low-key and pragmatic. In contrast, it is the various highlight content they have created in the industry. Some time ago, the “Jay Chou Concert Miracle Live Re-screening” that triggered the whole network to swipe the screen was actually written by TME.
The emotional resonance brought to the audience by music, chat groups, barrage and social media has brought thousands of people back to youth overnight, and also made the organizers behind them extremely excited. The number of people online has been reported frequently. Before the first re-screening was broadcast, the cumulative number of viewers on all broadcast platforms had exceeded the total number of offline tour concerts of “Magic Tianlun” and “The Strongest on the Surface”.
Behind the outbreak is a long-standing brewing. As early as 3 years ago in March 2020, TME live super live performance product was launched in grayscale under the expectations of many users and singers, and held many online concerts such as Andy Lau, Zhou Shen, Eason Chan, Rene Liu, etc., and the response was enthusiastic. After three years of hard work, the TME team has achieved the promotion of the online concert model from 0 to 1.
For investors, Tencent Music’s recent popular online concerts, the linkage with Tencent’s ecosystem and a series of innovations in content business lines have opened up room for imagination for TME in a new stage.
In June last year, Tencent Music made the largest organizational restructuring in its history. The company announced a new strategy of “platform + content” with two wings, and on the basis of continuous consolidation and realization of platform technology innovation, a content business line was established, and resources were concentrated to introduce, co-create and promote high-quality music content, serving the upstream and downstream of the music industry. Provide full-chain services and continue to support growing musicians.
“This is a long-term deployment, which requires our strategic investment in the short term, but in the long run, it must be beneficial to TME, creators and users, and even the entire Chinese music industry. So we have to keep our minds down.” Even during an interview Among them, Peng Jiaxin did not forget to share with colleagues present. This down-to-earth mentality, on the one hand, ensures that the team is firmly focused on the real growth point of the business, and on the other hand, it is free from constraints, so that it can maintain an open imagination for the longer term.
Service: Let musicians grow long-term
Indeed, who would have thought that more than ten years ago, QQ Music, Kugou Music and Kuwo Music were all just a player, but now, Tencent Music is building them into an ecological platform for the whole chain to serve Chinese musicians.
“Many people say that we are a ‘leader’, but in fact, we just want to do valuable things.” Peng Jiaxin told reporters frankly, “We have no shortage of talented young musicians and talented music producers. , but they need opportunity and attention. We want to help them.”
One of the valuable things mentioned here is the Tencent musician platform that has been deeply cultivated for many years. During the interview, we learned a piece of data: over 300,000 independent musicians have settled on Tencent’s musician platform. Here, more and more musicians are getting equal income by releasing their music works for domestic and overseas markets.
Valuable things also include those starting from technology and data, allowing creators to master more “tools” to enhance their creations and improve their lives.
The TME people contacted by the reporter have a common understanding: “We are a platform. What is a platform? A platform can carry better content and serve better groups, and only then will you be better.”
Mission: Let music travel through time and space
When the news of Tencent Music’s secondary listing was announced, Ye Xiaogang, vice chairman of the China Federation of Literary and Art Circles and chairman of the Chinese Musicians Association, encouraged the industry: China’s online music industry is booming. Through the efforts of practitioners, the quality of industry development and growth is constantly improving, and the cohesive content ecosystem has also attracted more cross-border partners for the industry. It is expected to continue to help Chinese online music discover greater development opportunities and release music. greater social value.
Although he is the helm of a leading company in the industry, the professional and pragmatic Peng Jiaxin does not dare to talk about his dreams lightly. He talks more about the “achievement” industry, the “contribution” industry, and the “service” industry.
He hopes that through the efforts of the team and colleagues in the industry, music can travel through time and make the popularity of this generation a classic for the next generation; he hopes that music can cross cultures, and the public welfare of music can naturally connect unfamiliar worlds, convey warmth and love.
Where is the Tencent concert going? Peng Jia replied with credit from another angle. He told us the most sincere and simple pursuit that has been followed by the music industry for many years – to make everyone willing to pay for good music, so that musicians can live and create with dignity and dignity, and let everyone be willing to pay for good music. Music can reach people’s hearts more classically and forever… In the eyes of him and TME people, as long as they run around these valuable things, the scenery along the way will be rewarded. (Reported by reporter Qi Rong and Li Anran in Beijing）