A very interesting article on the Techdirt website highlights how a Chinese company is making very good money with its online music streaming service. The company, QQ Music, is similar to Spotify – it makes available a wide assortment of music to its listeners. However, it’s making far more money than Spotify is.
There are a couple of reasons for this. One is that QQ Music is part of a larger Internet corporation, Tencent, and has a great deal of bargaining power as a result. Tencent has roughly 800 million users, and it brings this clout to the table when it bargains with record companies like Sony for the rights to put music on their streaming service.
Another reason for QQ Music doing so well is that the company makes it extremely easy for their customers to buy extras on the site. Essentially, they have set up their own transaction system that allows listeners to buy impulse items quickly and easily and before they change their minds.
Basically, QQ Music is successful because it is part of the top Internet company in China, a country with an enormous population. The story of this company will doubtless become the story of many other Chinese companies in years to come because this is truly a nation on the rise economically; it seems to me that QQ Music is showing the world a vision of the future.