Increased-priced ‘tremendous premium’ music streaming tiers stay one of many greatest income alternatives within the music business.
UMG Chairman and CEO Sir Lucian Grainge stated in his 2026 new 12 months memo that UMG will work with DSP companions on “enhanced premium tiers for superfans,” and on UMG’s This autumn earnings name earlier this month referenced “premium tiers being developed by the normal DSPs” as a part of a broader superfan ecosystem.
Spotify experimented with Premium worth segmentation final November when it launched a higher-priced ‘Premium Platinum’ tier in 5 rising streaming economies – however the business continues to look at for the arrival of a fully-fledged tremendous premium providing in western markets.
Over in China, the idea has already confirmed profitable, and is scaling quick
Tencent Music Leisure‘s (TME) ‘Tremendous VIP’ tier has simply hit a serious new milestone.
TME printed its This autumn and full-year 2025 outcomes right now (March 17), revealing that its SVIP subscribers surpassed 20 million by year-end – up from the 15 million the corporate reported on the finish of Q2, and simply 10 million in Q3 2024.
That development trajectory – doubling in only over a 12 months – tells us one thing essential concerning the urge for food for higher-priced music streaming, and provides a real-world blueprint for what higher-priced streaming tiers might ship.
Right here’s what the numbers present…
1. SVIP penetration is accelerating – whilst the broader person base shrinks
TME’s SVIP tier now represents roughly 15.7% of the corporate’s 127.4 million complete paying music subscribers.
That’s up from round 12% on the finish of Q2 2025, and simply 8% as lately as September 2024.
What makes this notably hanging is the context by which it’s occurring.
TME’s complete music month-to-month lively customers (MAUs) really fell 5.0% YoY to 528 million in This autumn – a continuation of a long-running decline from a peak of over 650 million.
The broader person base is contracting. However the paying person base isn’t.
TME’s complete variety of paying music customers grew 5.3% YoY to 127.4 million in This autumn, whereas month-to-month ARPPU (common income from every paying person) climbed 7.2% YoY to RMB 11.9 (round USD $1.70).
In different phrases: TME is shedding informal listeners however changing and monetising those who keep at an ever-higher charge.
SVIP is a key engine behind that monetization story.
TME’s SVIP subscribers pay roughly RMB 40 (USD $5.72) per thirty days, in comparison with the usual RMB 8 (USD $1.14) subscription – roughly 5 instances the income per person.
When you think about that these 20 million subscribers signify lower than 16% of TME’s paying base however are producing 5 instances the ARPU, the financial weight of the tier turns into clear.
2. What’s driving SVIP adoption?
TME attributed the SVIP milestone to “deepened collaborations with music labels, artists and the rollout of latest, high-valued advantages.”
In response to TME, premium sound high quality – together with Dolby Atmos help and superior audio applied sciences – stays a key SVIP draw. That needs to be famous by anybody monitoring the Spotify lossless/super-premium debate: within the one main market the place HD audio is gated behind a higher-priced tier, it’s working.
However audio high quality is just a part of the image. In This autumn, TME appointed model ambassadors for its SVIP program – together with Ryan Ding, Ju Jingyi, and Karry Wang for QQ Music, and Liu Yuning for Kugou Music (pictured beneath) – and launched prioritized ticketing packages for flagship occasions together with QQ Music’s Prime Music Night time 2026 and the annual gala of Melody Journey 2. Each, the corporate stated, resulted in “efficient SVIP adoption.”
Different SVIP advantages similar to premium audio results, personalised avatar outfits and feature-related perks additionally contributed to acquisition and retention, TME stated.
The corporate has additionally leaned closely into what it calls “artist-centric privileges” extra broadly: unique and timed-exclusive digital album releases, precedence entry to live performance tickets for in-demand exhibits, and collectible ‘star card’ sequence tied to standard artists.
TME CEO Ross Liang framed the milestone within the context of a broader strategic shift: “Pushed by differentiated, expansive content material privileges and immersive experiences, our SVIP person base surpassed 20 million, with ARPPU persevering with to development upward. Our newly launched ad-supported subscription plan is gaining preliminary progress and can, over time, enable us to broaden person entry and appeal to new audiences.”
That final level is notable: TME is now working a three-tier mannequin – ad-supported, normal, and SVIP – much like what Spotify is piloting with its Lite/Customary/Platinum construction in India and elsewhere.
3. The subscription income image
TME’s music subscription revenues reached RMB 4.56 billion (USD $653 million) in This autumn, representing 13.2% YoY development. That was a deceleration from the 17.2% posted in Q3 and 17.1% in Q2 – although nonetheless strong.
For the complete 12 months, music subscription income hit RMB 17.66 billion (USD $2.53 billion), up 16.0% YoY from RMB 15.23 billion in 2024.
Whole on-line music companies income (which incorporates promoting, artist-related merchandise, and offline performances alongside subscriptions) grew 21.7% YoY to RMB 7.10 billion (USD $1.02 billion) in This autumn. Music subscriptions accounted for round 64% of that complete; the rest was pushed by what the corporate described as “strong” development in offline performances and concert-related income.
For the complete 12 months, on-line music companies income reached RMB 26.73 billion (USD $3.82 billion), up 22.9% YoY – making it the dominant driver of TME’s total enterprise. Music operations now account for 82% of complete firm revenues, up from round 77% a 12 months in the past, because the agency’s legacy ‘social leisure’ division (karaoke and live-streaming tipping) continues to say no.
Observe: RMB to USD conversion for This autumn/FY 2025 carried out on the trade charge as of December 31, 2025, as supplied by TME.
Reservoir (Nasdaq: RSVR) is a publicly traded, international impartial music firm with operations throughout music publishing, recorded music, and artist administration. Music Enterprise Worldwide
