China counts around 1.36 billion people, making it the largest country in the world population wise. All it takes is for only a tiny portion of this population to pay for streaming services for it to hold onto its position as the world’s biggest music market.
A Focus dedicated to China can be found in the IFPI Global Music Report 2017:
“Now though, thanks to a confluence of deals, technology, new government policy and cultural shifts, it is being talked of as the next great global opportunity, with the potential to rank alongside the biggest music markets in the world. Recorded music revenue grew 20.3% in China last year, driven by an 30.6% rise in streaming”.
“The leading player in the streaming market is China’s internet giant, Tencent
Holdings”. Andy Ng, Tencent Music Entertainment Group Vice President says: “Our number of monthly active users accessing music is actually over 600 million, which means, at 15 million, our conversion to subscription is still less than 3%. If you look at other services, in other countries, the conversion rate is more like 20-30%, so we see a huge opportunity and potential for growth, as long as the market situation keeps improving and the piracy issues keep improving.”