Company: TME
Filing Date: 2025-04-23
Form Type: 20-F
Source: 0000950170-25-056949
Chunk: 218

Company: Tencent Music Entertainment Group
Filing Date: 2025-04-23
Form: 20-F
Item: Item 5
Chunk 218
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 and Industry - Our business operations may be adversely affected by the heightened regulatory oversight and scrutiny on live streaming platforms and performers.” We are striving to increase our competitive edge through ongoing product innovations and expanding into new areas of social entertainment such as interactive product offerings.
Our chief operating decision maker has determined that we have only one reportable segment.
Cost of revenues
The following table sets forth the components of our cost of revenues, in absolute amounts and as percentages of total cost of revenues, for the periods indicated.

                                                                           For the Year Ended December 31,
                         2022                                    2023                                 2024
                                RMB         %           RMB         %           RMB          US$         %
                                                                     (in millions, except for percentages)
Cost of revenues                                                                                          
Service costs                16,540      84.5        14,176      78.9        11,974        1,640      73.1
Other cost of revenues        3,026      15.5         3,781      21.1         4,402   603             26.9
Total cost of revenues       19,566     100.0        17,957     100.0        16,376        2,244     100.0

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Our cost of revenues primarily includes service costs, which mainly comprise (i) content costs, which primarily consist of royalties paid to music labels and other content partners and our in-house production costs. Such costs are used to support both our online music services and social entertainment services; (ii) fees paid to content creators pursuant to revenue sharing arrangements associated with our social entertainment services, including live streaming performers, their agencies and other users who perform on our platform; and (iii) content delivery costs relating primarily to server, cloud services and bandwidth costs paid to telecommunications carriers and other related service providers which are used to support both our online music services and social entertainment services.
Other cost of revenues includes payment channel fees, advertising agency fees, costs related to offline performances, employee benefits expenses and others. Payment channel fees consist primarily of fees paid to online payment gateways. Advertising agency fees consist primarily of commissions paid to advertising agencies. Costs related to offline performances consist primarily of organization and production costs of offline events. Employee benefit expenses consist primarily of the salaries and other benefits paid to our employees supporting the operations of our platform. Others mainly include costs associated with sales of artist-related merchandise.
We are committed to continually investing in high