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Pandora and Spotify are the most popular streaming music services in America, but neither business includes a meaningful existence in China's marketplace of over 650 million streaming songs users. Rather, the Chinese marketplace will be dominated by three tech giants -- Tencent (OTC:TCEH.Y), NetEase (NASDAQ:NTES), and Baidu (NASDAQ:BIDU). Senni Original Music streaming songs business could generate $645 million in revenues this season according to Statista's Digital Press Document 2017 as its user penetration price rises from 46.3% to 50.6% between 2018 and 2022. Therefore, tech traders should pay close attention to the growth of China's top streaming music systems. Image source: Getty Pictures. The merged company -- which pulled the top streaming platforms QQ Music, Kugou, and Kuwo into a solitary ecosystem -- settings about 76% of the Chinese music streaming market with over 600 million monthly active users (MAUs), in accordance with research firm DCCI. TME's streaming services may also be tethered to Tencent's WeChat, the most popular messaging app in China with 980 million globally MAUs.

TME has guaranteed the streaming privileges for music from Sony Amusement, Time Warner's Warner Music, and Comcast's General Music, and also streaming privileges from South Korean label YG Entertainment and Taiwanese labels JVR Music and LOEN Amusement. Last September, TME signed a cross-licensing agreement with Alibaba's much smaller Ali Music (Xiami) platform. That deal gave Ali Music access to TME's streaming portfolio, while TME acquired access to Ali Music's library of tracks from Taiwan's Rock Records, HIM International Songs, B'in Music, and Hong Kong's Mass media Asia. That offer considerably strengthened TME's presence across Taiwan and Hong Kong's pop songs markets. TME is likely to go general public later this year as Tencent Songs within an eagerly anticipated IPO. Last December, Tencent Music and Spotify -- that is also likely to go public this year -- agreed to purchase minority stakes (as high as 10%) in each other. The TME megamerger managed to get tough for smaller competitors to get much ground. Yet NetEase, which is best known for publishing PC and mobile video games, still handles about 16% of the streaming music market with NetEase Cloud Songs, in accordance with DCCI.

Image source: Getty Pictures. NetEase released the platform in 2013, and it had on the subject of 60 million MAUs as of last March according to research company QuestMobile. However, NetEase claimed that the support experienced 300 million total users final April, but didn't disclose just how many of those users were energetic monthly. NetEase sub-licenses the majority of its music articles from TME instead of securing immediate partnerships with report labels. To further complicate matters, NetEase and QQ Music (but not the other TME systems) have already been suing one another in an ongoing copyright battle over exclusive rights to certain songs. NetEase Cloud Songs is actually David to TME's Goliath, but investors still funded it with 750 million RMB ($119 million) in Series A financing last April, which gave it a valuation of 8 billion RMB ($1.3 billion). NetEase has also been adding social networking features to its app, that could help it compete keenly against Tencent's WeChat, and the platform remains the market leader in digital dance music, in accordance with iiMedia Analysis. Baidu is practically tied with Tencent in the streaming movie market, nonetheless it continues to be a distant underdog in the music streaming one.

Baidu Songs only controls about 4% of the marketplace, according to DCCI, which is surprising considering that Baidu's search engine handles over 70% of most online queries in China. Back in 2008 Baidu has been sued by various major record companies for allegedly linking to pirated music using its music search engine. The record companies lost that case, but Baidu subsequently agreed to pay them compensation for every downloaded or streamed music. Baidu attempted to recoup those expenses with advertisements. In late 2015 Baidu merged Baidu Songs with the report company Taihe GROUP, which owned over 700,000 copyrights along with licenses with abroad report labels, to increase its music library. Baidu hasn't said very much about Baidu Music in the last few quarters, but it could theoretically integrate the system with its popular video system, iQiyi, as a streaming music option. These three platforms all generate small portions of their parent companies' revenues, but they could grow in importance on the next few years. For the present time, all three systems are centered on converting free ad-backed listeners to paid subscribers, that could generate more sustainable and higher-margin revenues over the long term.