Lockdowns and travel bans triggered by the new coronavirus have been a boon to JOOX, Chinese tech giant Tencent’s international music streaming platform, driving traffic to its karaoke services up by up to 50%, an executive said.
Founded in 2015, JOOX is an abroad model of China’s top music streaming firm Tencent Music Entertainment Group and marks the gaming and social media group’s international challenge to greater rivals such as Spotify Technology.
JOOX, which operates in Southeast Asia, Hong Kong and South Africa, is already vying for the top spot in music streaming companies with Alphabet’s Youtube Music and Spotify in Indonesia, Malaysia, and Thailand.
The platform’s karaoke feature permits users to sing along with mates and receive online presents purchased with virtual coins in the app.
The model, which extra established Tencent Music uses, has proved profitable: While most of Tencent Music’s customers are in its music streaming unit, the firm’s greatest revenue drivers are social entertainment services similar to karaoke platforms.
Tencent Music reported forecast-beating revenues in the fourth quarter, partly due to such paid services.
Yeung stated some customers in Southeast Asia are now prepared to pay, although they still remain a small portion of the total subscribers. To boost site visitors and paid customers, JOOX has added new features that permit users to use cash to gain VIP standing and send gifts to friends holding various activities such as karaoke, events, and live-streaming.