Tencent Video Membership Hits Record High, Boosting Stock Performance

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Tencent Video’s membership reached a new high in the first quarter of 2025, directly boosting Tencent’s stock market performance. The growth in membership base, combined with the company’s active share buybacks and AI technology investments, has attracted increased investor attention. These initiatives not only strengthen profitability but also provide new insights for investment decisions.

Key Points

• Tencent Video’s membership reached 117 million, maintaining its top position in China’s long-form video market, driving stable revenue growth.
• AI technology enhances content quality and recommendation efficiency, increasing membership retention and becoming a new driver for future growth.
• Membership revenue and average revenue per user (ARPU) continue to rise, showing users’ willingness to pay for premium content.
• The company actively repurchases shares and increases cash dividends, enhancing shareholder returns and stabilizing stock price performance.
• Investors should monitor market competition, regulatory risks, and returns on AI investments, carefully evaluating long-term investment opportunities.

Membership Data and Industry Position

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Membership Scale

Tencent Video’s paid membership reached 117 million in the first quarter of 2025, setting a historical record. This figure reflects the platform’s strong appeal in China’s long-form video market. According to the latest market data, Tencent Video’s membership scale far surpasses major competitors, securing its leading position in the industry.

For example, iQiyi had approximately 98 million members in the same period, while Youku maintained around 70 million. Tencent Video’s membership growth rate is significantly ahead, demonstrating that its content strategy and product experience have gained strong user recognition.

The increase in membership scale directly drives platform revenue growth. Each new member contributes to stable cash flow for the company. Based on the first-quarter 2025 exchange rate (1 USD to approximately 7.8 HKD), membership revenue significantly contributed to overall performance.

Industry Leadership

Tencent Video’s leading position in China’s long-form video market stems from its diversified content strategy and technological innovation. The platform actively invests in original dramas, variety shows, and sports events, attracting audiences of different age groups.

In 2025, Tencent Video established an AI Film and Television Expression Studio, focusing on artificial intelligence-driven content production. This initiative improves content quality and recommendation efficiency, further enhancing membership retention.

Industry analysts generally believe that AI technology will become a new engine for future membership growth. Through technological innovation, Tencent Video strengthens its market leadership, providing the company with sustained competitive advantages.

Performance and Revenue Growth

Membership Revenue

Tencent Video recorded significant membership revenue growth in the first quarter of 2025. The membership base exceeding 117 million drove continued growth in platform paid revenue. According to the company’s financial report, membership revenue’s proportion of total revenue further increased. Calculated at 1 USD to 7.8 HKD, membership revenue reached approximately $1.5 billion, a year-on-year increase of over 10%. This growth reflects users’ willingness to pay for premium content, indicating the increasing maturity of the platform’s business model.

ARPU Growth

Average revenue per user (ARPU) also saw significant growth. In the first quarter of 2025, Tencent Video’s ARPU reached $12.8, an 8% increase from the same period last year. The company effectively boosted ARPU by optimizing membership tiers, offering high-value content, and enhancing user experience. The table below shows ARPU changes over the past two years:

Industry analysts note that ARPU growth helps enhance platform profitability, providing financial support for future AI and content innovation investments.

Profit Growth

Tencent Video’s total revenue in the first quarter of 2025 is expected to grow by 9.5%, reaching approximately $3.2 billion. Profit during the same period increased by 18.3%, reflecting significant improvements in operational efficiency. AI strategy investments and R&D expenditures continue to rise, driving automation in content production and optimization of recommendation systems. While these investments increase short-term costs, they contribute to long-term improvements in user retention and platform competitiveness. The management team emphasized that the company will continue to increase investments in AI and technological innovation to solidify its industry-leading position.

Tencent Stock and Price Performance

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Stock Price Changes

Following the announcement of Tencent Video’s record-high membership, Tencent’s stock price on the Hong Kong Stock Exchange saw a significant rise. On the day of the announcement, the stock price surged by approximately 4.2%, closing at $52.8 per share (calculated at 1 USD to 7.8 HKD). This increase was notably higher than other Chinese tech stocks during the same period. For example, Alibaba’s stock price rose by only 1.5%, while Meituan remained stable.

The market generally believes that membership growth reflects the strong fundamentals of Tencent Video’s business, providing additional momentum for Tencent’s stock. Analysts note that the stable cash flow from the long-form video business helps enhance the company’s overall valuation.

Investors are optimistic about Tencent Video’s growth potential, driving a significant increase in Tencent’s stock trading volume. According to trading data, trading volume on the announcement day was 30% higher than the previous week’s average. This indicates active capital inflows and strengthened investor confidence.

Buybacks and Dividends

Tencent Holdings plans to repurchase shares worth approximately $10.26 billion (80 billion HKD) throughout 2025, with approximately $2.19 billion (17.1 billion HKD) already completed in the first quarter. This initiative effectively boosts earnings per share and stabilizes Tencent’s stock market price.

Share buybacks not only reflect the company’s confidence in its own value but also deliver tangible returns to existing shareholders.

Meanwhile, Tencent Holdings announced an increase in total cash dividends for 2025 to approximately $5.26 billion (41 billion HKD), a 32% increase from the previous year. This dividend policy further enhances shareholder returns, attracting sustained attention from long-term funds to Tencent’s stock. The table below summarizes changes in share buybacks and cash dividends:

Market Reaction

The market responded positively to Tencent Video’s record-high membership and the company’s proactive shareholder return initiatives. Several international investment banks, including Morgan Stanley and UBS, raised their target prices for Tencent’s stock. Analysts generally believe that stable membership revenue growth, combined with AI strategy investments, will continue to drive improvements in the company’s profitability.

Analyst reports suggest that share buybacks and cash dividend policies help enhance Tencent’s stock attractiveness and reduce market volatility risks.

Investor sentiment has noticeably improved, with accelerated capital inflows. According to the latest data, Tencent’s stock saw a net capital inflow of $350 million in the week following the announcement. Sustained high trading volumes indicate strong market confidence in the company’s future development.

Future Outlook and Risks

Growth Sustainability

Tencent Video’s membership base continues to expand, with paid membership reaching 117 million in 2025. This growth stems from the platform’s diversified content and technological innovation. The company actively invests in AI, improving ad ranking systems and content recommendation efficiency. AI technology applied to large language models and internal foundation models drives improvements in ad click-through rates and user experience.

Tencent’s management plans to further increase capital expenditure in 2025, focusing on AI product innovation and deep model development. Ma Huateng emphasized that AI-driven upgrades to the advertising platform and increased user engagement in Video Accounts will drive double-digit revenue growth.

Additionally, Tencent’s acquisition of Himalaya further expands its music and audio market presence. This strategic move helps attract new users, enhance membership retention, and create additional revenue streams for the platform.

Industry reports indicate that AI investments have become a key driver of performance growth. NVIDIA’s financial report notes that AI demand drove a 78% revenue increase, and AI technology is expected to continue creating value in the future.

Tencent Stock Outlook

With stable membership revenue growth and ongoing AI strategy advancements, Tencent’s stock shows promising prospects. The company’s continued share buybacks and increased cash dividends boost shareholder confidence. Multiple international investment banks have raised target prices, believing the company has long-term growth potential.

Tencent’s restructured AI team, focusing on product innovation and marketing, is expected to drive sustained platform growth. Management believes that AI investments will deliver strong economic returns and the ability to continue rewarding shareholders.

Investors should pay attention to the company’s developments in AI, music, and audio markets, as these new businesses are poised to become new growth drivers.

Risk Challenges

Despite Tencent Video’s sustained membership and revenue growth, the company faces several risks. The Chinese long-form video market is highly competitive, with platforms like iQiyi and Youku continuing to increase investments in content and technology. Regulatory policy changes may also impact platform business development.

While AI technology offers growth opportunities, it also increases R&D costs. If AI investments fail to deliver expected returns, they could pressure profitability. The music and audio market strategy faces challenges from new entrants and shifting user demands.

Investors should closely monitor market competition patterns, regulatory developments, and the implementation of the company’s AI strategy, carefully evaluating the long-term risks and returns of Tencent’s stock.

Tencent Video’s record-high membership, share buybacks, and AI strategy continue to drive Tencent’s stock performance. Investors should closely monitor membership growth drivers, AI technology implementation, and music and audio market developments. In the future, industry competition and regulatory changes may pose challenges. It is recommended that investors cautiously assess risks and flexibly adjust their holding strategies to seize long-term growth opportunities.

FAQ

How much is Tencent Video’s membership fee?

Tencent Video’s standard membership costs approximately $7.7 per month (calculated at 1 USD to 7.8 HKD). Prices vary by membership tier, and users can choose based on their needs.

How does AI technology drive membership growth?

Tencent Video established an AI Film and Television Expression Studio. AI improves content recommendation efficiency, making it easier for users to find preferred programs, thus attracting more paid members.

What are the benefits of share buybacks for shareholders?

What are the main risks facing Tencent’s stock?

Tencent’s stock faces risks from industry competition, regulatory policies, and uncertainties in AI investment returns. Investors should closely monitor market dynamics and carefully evaluate investment decisions.

What is the strategic significance of Tencent’s acquisition of Himalaya?

Tencent’s acquisition of Himalaya further expands its music and audio market presence. This helps attract new users, increase revenue streams, and enhance platform competitiveness.

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