AsianFin -- Shares of Tencent Music Entertainment Group and its smaller rival NetEase Cloud Music Inc. have more than doubled since the end of 2023, outpacing most of their Chinese internet peers.

The rally reflects investor confidence in the companies’ pivot toward monetizing loyal user bases, alongside an expansion into podcasts and live events.

Tencent Music has delivered four consecutive quarters of growth in revenue per paying user, largely by successfully nudging subscribers toward higher-tier plans.

The strategy marks a notable contrast to recent trends in China’s tech sector, where aggressive price wars in electric vehicles and e-commerce have fueled stock volatility.