Tencent Holdings Ltd will roll out its paid music app Joox to some of Africa’s most populous countries after the streaming service proved a hit in South-East Asia.
Tencent is a profitable company, especially successful with digital music where most of this success is localized to Asian countries. They are shareholders in many successful companies like Spotify but their services themselves often don’t make it off of the continent.
However, Joox is already available in South Africa for users to stream music on. With a recent spike in streams with the rise of Coronavirus, Tencent may decide to launch its music app further in Africa.
Joox’s karaoke feature has seen a 50% increase in use so far this year.
The Vice President of Tencent’s international business group, Poshu Yeung, said, “There are a lot of local labels and artists that are big in Africa, but the whole digitalization journey is not even there. Rather than go fighting for the pie, it’s better to build a pie.”
Joox music has already a team of 60 in Cape Town and they are well prepared to launch their services across Africa. South Africa seems to have served as a test to see how Joox was received in the area.