Kugou Music, founded in 2004, is one of China’s largest music streaming platforms and a key player in the global music industry. It’s part of the Tencent Music Entertainment (TME) group, which owns QQ Music and Kuwo. With over 450 million monthly active users (MAUs) as of 2024, Kugou has carved out a niche by blending music streaming with social and interactive features. If you’re looking to develop an app like Kugou Music, understanding how Kugou Music works and its business model and revenue strategies can give you a strategic edge.
What is Kugou Music?
Founded in 2004, KuGou is a Chinese music streaming as well as download service owned by Tencent Music. It’s one of the most comprehensive music streaming services globally, with over 450 million monthly active users. Kugou Music is one of China’s most extensive online music services, which covers a 28% market share with a great audience base.
It has around 800 million users, while the merger between Tencent’s QQ Music and China Music Corporation was announced in July 2016. The services are anticipated to continue being endeavored distinctly with Kuwo, and Tencent Music owns another online music service. It has gained a place as the third-largest one in China; Kugou Music holds a music award ceremony, the KU Music Asian Music Awards, and the Cool Music Asia Festival Award. The music service is available in Mainland China.
Kugou Music Business Model
Kugou Music is a famous music player in China almost loved by the Chinese. It made its place at the top of the chart by adhering to the needs of a broad audience; also, users living in small towns can enjoy the music content of their type. Besides listening to music, users can also listen to the radio, read comments on songs, interact through social media, and watch videos.
Kugou has integrated a KTV streaming section that helps users gain “coins” that can later be transferred into real currency. The music player is from Guangzhou. The search function on Kugou Music is far better than other music streaming platforms because it makes it straightforward for users to search for popular songs by just entering their lyrics.
Offline concerts are recovering these days, but Kugou Music continues to successfully adhere to two-line business parallels, launch shocking music feasts, and provide most users with more high-grade quality and diversified music performances. Each music fan can enjoy living in Kugou.
However, the pay for online music in China was not accepted by netizens, which has changed dramatically in recent years. Chinese fans are enthusiastic about making the music industry successful, and many musicians are leveraging this kind of platform to interact with fans and promote the song.
Key Features of the Kugou Music
Kugou Music operates on a freemium + social entertainment model. It combines music streaming with interactive social features to create a highly engaging platform. The core of Kugou’s business model is built on:
Music Streaming – Providing access to a large music library with personalized recommendations.
Social Features – Enabling user engagement through live streaming, comments, and virtual gifting.
Exclusive Content – Licensing music from major labels and independent artists to offer unique content.
Community Building – Fostering a sense of connection through fan engagement and artist interactions.
Kugou joins hands with TME live to provide a “hardcore” online music feast Entertainment Channel. Both Kugou and TME Live have successfully attached singers and bands to join the online live broadcast camp with their operating ideas and powerful resources.
Presently the singers performing include Wu Bai and Andy Lau, who are well-known to parents, Zhang Shaohan, Eason Chan, to Mayday, and Wu Qingfeng, who attended the youth of the 80s and 90s, to Shidai, Zhou Shen, and Chen Linong, who is loved by the post-00s and post-95s.
Around 100 celebrity singers like End of the World, Youth League, Ava Max, etc. Additionally, TME live presented by Kugou has been unlocking various music genres, like rap, pop, electronic, national style, reggae, rock, etc. The diverse and rich Live performances launched by Kugou Music have started up the aesthetic boundaries of music fans, enabling vertical niche music to get many fans.
How Kugou Music Makes Money – Check the Revenue Model Which the Platform Follows
Kugou Music mainly focuses on user-generated content. Besides regular music services, it primarily emphasizes in-app karaoke and live streaming. It also emphasizes grassroots talents and has an innovative “ViPER” feature. The accumulation of audio effects enables fans to enjoy high-quality sound without professional equipment.
The platform follows the same pricing strategy as QQ Music and Kuwo Music. It works on three tiers that are:
- Free;
- Premium (¥8/month);
- All-inclusive (¥15/month).
However, the free tier of the music players allows users with limited access to the content. At the same time, the premium tier enables users to stream and download almost all streaming content on the platform. And the last one, “all-inclusive,” provides users with even better HIFI audio quality; they usually have special discount deals or subscription bundles with video streaming platforms like Bilibili, Tencent Video, and Iqiyi.
QQ Music, Kuwo Music, and Kugou Music together cover 70% of the market share. The music streaming platform is now aggressively pushing the monetization process; this simply means musicians can get more benefits here. The Chinese music sector is experiencing a healthier ecosystem.
Kugou Music operates on a multi-stream revenue model that blends advertising, subscriptions, virtual goods, and live-streaming monetization.
Advertising
In-App Ads: Ads are shown to free-tier users while streaming music.
Brand Partnerships: Kugou partners with brands to promote products within the platform.
Sponsored Playlists and Content: Brands can sponsor playlists or have their products integrated into music videos or live streams.
Premium Subscriptions
- Monthly or yearly subscription options give users:
- Ad-free listening
- Higher sound quality
- Offline downloads
- Exclusive content access
- Kugou charges competitive rates to maximize user conversion from free to premium.
Live Streaming and Virtual Gifts
- Users can send virtual gifts to streamers during live performances.
- Kugou takes a cut of the revenue generated from virtual gifts.
- Popular influencers and artists can monetize their fan base through live interactions.
Licensing and Distribution
- Kugou licenses music from record labels and independent artists.
- Revenue is shared with artists based on streaming volume and engagement.
- Kugou also negotiates exclusive licensing deals to differentiate itself from competitors.
In-App Purchases
- Users can purchase special emojis, skins, and visual effects.
- Limited-time offers and seasonal campaigns drive additional in-app spending.
How Does Kugou Music Work?
Most people who love C-Pop songs don’t exactly know where to find all of them, and they find it more difficult when they move to other places of the world like China or any other. And if you are feeling you’re in the same situation and find it more difficult then we can help you find and enjoy the best streaming content on Kugou Music, let’s explore more to know how Kugou Music works, its business, and its revenue model right here.
Although mobile streaming usage is high among Chinese netizens, most are not intimate with paying for the services, and they are likely to opt for accessible sources to obtain their choice of music. In 2018, paying members gained around 5.3% of the total music user base in China. Even among those who want to spend on online music, almost 70% spent less than 50 yuan per month.
All this has resulted in lowering the average revenue per user of Chinese music platforms. And to deal with the issue, industry experts have suggested raising public awareness of copyright protection. However, if you are familiar with music streaming platforms, you might not hear names like Kugou Music, Kuwo Music, QQ Music, Xiami Music, and NetEase Music.
These are the few best Chinese music streaming services that have gained massive popularity among users quickly. And one such is Kugou Music, and to make us understand everything about the service, we have listed everything about the service, like what is Kugou Music? How does it work & make money? and much more.
Step-by-Step Overview of How Kugou Music Works
Kugou Music enables users to search for music and download them at their convenience. Users have to register themself to the platform to enjoy the music of their choice on the streaming platform. Kugou Music has many one-star ratings on the app store; the platform is the best option for listening to and downloading Chinese music.
Kugou app is a hit among the immense audience that forms its fan following. The name implies Cool Dog and has gained a place among the local hipster community. This is what makes the Kugou Music platform so loved by its users; the music player feature integrates KTM streaming through which each user gets a chance to earn song coins and convert the same into genuine currency.
Besides, the music player seeks to engage its users by making it interactive on a social platform. The users can easily comment and share their opinions while listening to songs using bullet screens to stream their opinions across the video. Doesn’t that sound so exciting and unexpected?
Kugou Music operates by combining music streaming, social engagement, and content creation into one platform. Its user-centric design makes it easy to discover, stream, and engage with music and artists.
User Registration & Access
- Users can sign up for free or through a premium subscription.
- A freemium model allows access to basic features with ads.
Music Discovery
- AI and user behavior analysis power music recommendations.
- Users can explore trending charts, playlists, and curated content.
Streaming & Downloading:
- Free users can stream with ads, while premium users enjoy ad-free, high-quality audio.
- Downloads are available for offline listening for premium users.
Social and Community Engagement:
- Users can follow other listeners, like songs, and comment on tracks.
- User-generated playlists and song-sharing drive organic engagement.
Live Streaming and Virtual Gifts:
- Artists and influencers can livestream and interact with fans.
- Viewers can send virtual gifts to streamers, which are converted into revenue.
Monetization and Upselling:
- Upselling premium subscriptions, virtual gifts, and exclusive content.
- Leveraging in-app purchases and premium memberships to boost revenue.
Conclusion
Kugou Music’s success stems from its ability to merge music with social interaction and innovative monetization strategies. If you’re building an app like Kugou, focus on creating a rich user experience with interactive features, social engagement, and multiple revenue streams. Kugou’s model proves that music platforms can thrive when they offer more than just music — they create a community.
Alphanso Technology can help you build a music streaming software like Kugou with expert solutions in streaming, social features, live streaming, and monetization strategies. From custom app development to seamless user experience and advanced AI-driven recommendations, Alphanso Technology provides end-to-end support to bring your music app idea to life.
FAQs About Kugou Music’s Business and Revenue Model❓
What makes Kugou Music different from other music streaming platforms?
Kugou Music stands out due to its combination of music streaming and social features like live streaming, virtual gifting, and real-time user interaction. It’s not just a music app — it’s a social music ecosystem.
How does Kugou benefit from Tencent’s ecosystem?
As part of Tencent Music Entertainment (TME), Kugou benefits from Tencent’s vast ecosystem, including integrated payment systems, social media exposure (WeChat), and cross-platform promotions.
What are the main challenges faced by Kugou Music?
Kugou faces challenges like competition from other platforms (e.g., QQ Music, NetEase Cloud Music), licensing costs, and the need to continuously innovate social features to retain user engagement.
How does Kugou Music make money?
Kugou generates revenue through advertising, premium subscriptions, virtual gifting during live streams, music licensing, and merchandise or ticket sales. This hybrid model allows it to monetize both free and premium users.
What percentage of Kugou’s revenue comes from social features?
Over 65% of Kugou’s revenue comes from social entertainment, including virtual gifting and live streaming. This highlights the importance of interactive features in the platform’s success.
How does Kugou attract and retain users?
Kugou attracts users through a large music library, AI-driven personalized recommendations, exclusive content from major labels, and engaging social features like live streaming and fan interactions.
Is Kugou’s business model sustainable in the long run?
Yes, Kugou’s diversified revenue streams (ads, subscriptions, gifting, and licensing) make its business model sustainable. The platform’s focus on user engagement and social interaction also ensures long-term retention and growth.
Can I build an app similar to Kugou Music?
Yes, you can! Alphanso Technology specializes in building music streaming platforms with social features, personalized recommendations, and monetization strategies.👉 To get started, reach us at sales@alphansotech.com.