Briefing: Tencent invests in Douban FM to shore up its music streaming business
Feb 20, 2019
What happened: China’s music streaming platform Douban FM received strategic investment from Tencent Music and Shanghai-based equity firm Trustbridge Partners. Douban FM parent company DNV Music Group will set up a new firm with investors to ensure an overhauled platform will come online soon. Tencent will provide “significant support” to Douban FM in terms of product design and copyright authorization rather than spending real money, according to local media Sina Tech. Why it’s important: Launched in 2009 as one of the first music streaming services in China, Douban FM lost its popularity following local giants accelerating their forays into the market. Its monthly active users halved to 4 million over the past eight years, compared to that of Tencent’s QQ Music (290 million). Still, the Pandora-style service is powered by algorithms and let’s users to make their own playlists or even channels. Tencent Music went public after reportedly delaying the IPO amid turmoil earlier this month. The investment in Douban FM marks Tencent’s expansion in its product lines with more stakes in China’s crowded music streaming market.