Tencent Music now has 20M+ ‘Tremendous VIP’ subscribers. Right here’s what meaning for China’s largest music streamer.
Increased-priced ‘tremendous premium’ music streaming tiers stay one of many largest income alternatives within the music business.
UMG Chairman and CEO Sir Lucian Grainge stated in his 2026 new yr memo that UMG will work with DSP companions on “enhanced premium tiers for superfans,” and on UMG’s This fall earnings name earlier this month referenced “premium tiers being developed by the standard DSPs” as a part of a broader superfan ecosystem.
Spotify experimented with Premium value segmentation final November when it launched a higher-priced ‘Premium Platinum’ tier in 5 rising streaming economies – however the business continues to look at for the arrival of a fully-fledged tremendous premium providing in western markets.
Over in China, the idea has already confirmed profitable, and is scaling quick
Tencent Music Leisure‘s (TME) ‘Tremendous VIP’ tier has simply hit a serious new milestone.
TME printed its This fall and full-year 2025 outcomes right now (March 17), revealing that its SVIP subscribers surpassed 20 million by year-end – up from the 15 million the corporate reported on the finish of Q2, and simply 10 million in Q3 2024.
That development trajectory – doubling in exactly over a yr – tells us one thing essential in regards to the urge for food for higher-priced music streaming, and gives a real-world blueprint for what higher-priced streaming tiers may ship.
Right here’s what the numbers present…
1. SVIP penetration is accelerating – whilst the broader consumer base shrinks
TME’s SVIP tier now represents roughly 15.7% of the corporate’s 127.4 million whole paying music subscribers.
That’s up from round 12% on the finish of Q2 2025, and simply 8% as just lately as September 2024.
What makes this notably hanging is the context wherein it’s occurring.
TME’s whole music month-to-month energetic customers (MAUs) really fell 5.0% YoY to 528 million in This fall – a continuation of a long-running decline from a peak of over 650 million.
The broader consumer base is contracting. However the paying consumer base isn’t.
TME’s whole variety of paying music customers grew 5.3% YoY to 127.4 million in This fall, whereas month-to-month ARPPU (common income from every paying consumer) climbed 7.2% YoY to RMB 11.9 (round USD $1.70).
In different phrases: TME is dropping informal listeners however changing and monetising those who keep at an ever-higher price.
SVIP is a key engine behind that monetization story.
TME’s SVIP subscribers pay roughly RMB 40 (USD $5.72) per 30 days, in comparison with the usual RMB 8 (USD $1.14) subscription – roughly 5 occasions the income per consumer.
When you think about that these 20 million subscribers characterize lower than 16% of TME’s paying base however are producing 5 occasions the ARPU, the financial weight of the tier turns into clear.
2. What’s driving SVIP adoption?
TME attributed the SVIP milestone to “deepened collaborations with music labels, artists and the rollout of latest, high-valued advantages.”
In accordance with TME, premium sound high quality – together with Dolby Atmos help and superior audio applied sciences – stays a key SVIP draw. That needs to be famous by anybody monitoring the Spotify lossless/super-premium debate: within the one main market the place HD audio is gated behind a higher-priced tier, it’s working.
However audio high quality is simply a part of the image. In This fall, TME appointed model ambassadors for its SVIP program – together with Ryan Ding, Ju Jingyi, and Karry Wang for QQ Music, and Liu Yuning for Kugou Music (pictured under) – and launched prioritized ticketing packages for flagship occasions together with QQ Music’s Prime Music Night time 2026 and the annual gala of Melody Journey 2. Each, the corporate stated, resulted in “efficient SVIP adoption.”
Different SVIP advantages reminiscent of premium audio results, customized avatar outfits and feature-related perks additionally contributed to acquisition and retention, TME stated.
The corporate has additionally leaned closely into what it calls “artist-centric privileges” extra broadly: unique and timed-exclusive digital album releases, precedence entry to live performance tickets for in-demand exhibits, and collectible ‘star card’ collection tied to common artists.
TME CEO Ross Liang framed the milestone within the context of a broader strategic shift: “Pushed by differentiated, expansive content material privileges and immersive experiences, our SVIP consumer base surpassed 20 million, with ARPPU persevering with to development upward. Our newly launched ad-supported subscription plan is gaining preliminary progress and can, over time, permit us to broaden consumer entry and entice new audiences.”
That final level is notable: TME is now working a three-tier mannequin – ad-supported, customary, and SVIP – just like what Spotify is piloting with its Lite/Customary/Platinum construction in India and elsewhere.
3. The subscription income image
TME’s music subscription revenues reached RMB 4.56 billion (USD $653 million) in This fall, representing 13.2% YoY development. That was a deceleration from the 17.2% posted in Q3 and 17.1% in Q2 – although nonetheless sturdy.
For the complete yr, music subscription income hit RMB 17.66 billion (USD $2.53 billion), up 16.0% YoY from RMB 15.23 billion in 2024.
Complete on-line music companies income (which incorporates promoting, artist-related merchandise, and offline performances alongside subscriptions) grew 21.7% YoY to RMB 7.10 billion (USD $1.02 billion) in This fall. Music subscriptions accounted for round 64% of that whole; the rest was pushed by what the corporate described as “sturdy” development in offline performances and concert-related income.
For the complete yr, on-line music companies income reached RMB 26.73 billion (USD $3.82 billion), up 22.9% YoY – making it the dominant driver of TME’s total enterprise. Music operations now account for 82% of whole firm revenues, up from round 77% a yr in the past, because the agency’s legacy ‘social leisure’ division (karaoke and live-streaming tipping) continues to say no.
Observe: RMB to USD conversion for This fall/FY 2025 carried out on the change price as of December 31, 2025, as supplied by TME.
Reservoir (Nasdaq: RSVR) is a publicly traded, world impartial music firm with operations throughout music publishing, recorded music, and artist administration. Music Enterprise Worldwide
