TME shares plunge as CEO warns of 2026 pressure

TME stock tanks hard after weak guidance exposes fierce streaming wars in China.

TME earnings hit

• Tencent Music revenue climbs, but users drop off.
• Super VIP tier crosses twenty million subscribers.
• Music subscription revenue jumps sixteen percent yearly.
• Shares crashed nearly twenty-five percent on Tuesday.

Warner Music renewal

• TME extends partnership with Warner Music Group.
• Deal now covers physical albums plus live shows.
• The company doubles IP merchandise revenue in 2025.
• Ed Sheeran's KIT album marks first Western hybrid push.

AI music platform boom

• Over ten million users create tracks on TME tools.
• One hundred fifty thousand pros join the platform.
• QQ Music AI Agent handles purchases via voice commands.
• AI tracks mimic UGC without shaking royalty streams.

2026 outlook warning

• Subscription revenue faces a short-term competition squeeze.
• Gross margin stays flat or dips slightly next year.
• Live concerts and merch expected to offset pressure.
• ByteDance Soda Music ramps up the heat.