This past May, we first explained the main reasons we like Momo Inc. (MOMO), one of China’s fastest growing social networking platforms. Recently, the company also announced a partnership with four music labels to “find talent and create tomorrow’s superstars” through the “Momo Music Plan.”
Note, the company reports earnings tomorrow and ETF PM has long positions in MOMO.
Momo joins four music labels to sprinkle stardust on video streaming hosts
China’s millennials are spending US$5 billion on phone-based entertainment, a revenue that almost equals to the country’s movie box office.
Meng Jing, 6/19/17
Momo Inc., the dating app and operator of China’s largest video streaming platform, said it’s partnering with four music labels to turn its broadcasters into professional singers, as it aims to steal the march on competitors in a market where millennials are spending almost as much money on smartphone content as they do at the cinemas.
The Nasdaq-listed company will invest more than 10 million yuan (US$1.5 million) to establish a Momo Music Plan programme, whereby more than 10 million Momo users have selected 12 broadcasters from a field of 1 million to put them on the fast track to super stardom.
BMG will produce albums for the shortlisted broadcasters for the global market, while Taihe Music Group, Beijing Haiyi Brothers Music — a unit of one of China’s largest private movie production studios — and Yue Hua Entertainment provide professional training sessions, marketing and promotional plans.
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