The worldwide lockdown due to the COVID-19 pandemic is forcing people to stay indoors to avoid the virus spread. JOOX- the Hong Kong based music streaming service of Tencent, has reportedly witnessed a 50% rise in its karaoke service traffic.
Apparently, the music streaming company operates across South East Asia, South Africa and Hong Kong and is a strong competitor to Alphabet Inc.’s YouTube Music and Spotify in Malaysia, Thailand and Indonesia.
According to Poshu Yeung, Vice President of Tencent’s International Business Group, with an increase in number of people staying indoors and listening to music, the usage of karaoke has witnessed an increase between 30% to 50% depending on the countries.
He further added that, some of the users based in Southeast Asia are willing to pay for the services. In order to increase the number of paid customers and boost traffic, JOOX has introduced additional features that permit users to use coins in order to gain VIP access and send gifts to friends, including several activities like livestreaming, events and karaoke.
Reportedly, the karaoke feature provided by JOOX permits users to sing along with their friends and receive gifts online purchased with the help of virtual coins in the application.
Notably, the model used by Tencent is comparatively more advanced and has showcased significant profits. While most of the users of Tencent Music are in the music streaming division, the highest revenue generator for the company are social entertainment services like karaoke platforms. The company recorded unprecedented revenues during the fourth quarter.
Citing reliable sources, with the increase in number of people working from home, Tencent has witnessed a 43% increase in application downloads in February as compared to the previous year.
Incorporated in the year 2015, JOOX is a leading Chinese music streaming entity owned by Tencent Music Entertainment Group and is a strong competition to other prominent international gaming and social media names.
Source Credits: https://in.reuters.com/article/tencent-joox/stay-home-and-karaoke-tencents-joox-sees-usage-spike-in-southeast-asia-idINKBN21O06X
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