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ByteDance’s free Soda (Qishui) forces Tencent into ‘Free Music’ mode

ByteDance’s Soda (Qishui) has accelerated free, ad‑driven listening in China; Tencent responded with a Huawei 'Free Music' app. Independents should prioritise short‑video funnels and ad-tier placements.

Phone showing a music app interface with short‑video discovery
Source: musically.com

What changed: ByteDance’s Soda (Qishui) has scaled as a free, Douyin‑adjacent, ad‑driven streaming product — reported at about 167 million monthly active users (MAUs) in June 2026 (36Kr citing QuestMobile; Sept 10, 2026; checked Sep 12, 2026). Earlier snapshots cited by Music Business Worldwide put Soda at “more than 140 million” (Music Business Worldwide; May 13, 2026; checked Sep 12, 2026) and QuestMobile’s Spring report at 156 million (reported by Music Business Worldwide; May 13, 2026; checked Sep 12, 2026).

Who it affects: major DSPs and independent artists in China. Tencent Music responded by launching a lightweight, ad‑supported “Free Music” app on Huawei AppGallery (reported Sept 10, 2026; MusicNews.com; checked Sep 12, 2026) after experimenting with free tiers for Kugou. Tencent’s Q2 2026 results show RMB 8.93 billion revenue for Q2 2026 (Tencent Music press release; Aug 11, 2026; checked Sep 12, 2026), and TME has said its SVIP base “surpassed 20 million by the end of 2025” (reported by Music Business Worldwide; May 13, 2026; checked Sep 12, 2026). IFPI’s Global Music Report 2026 notes China became the world’s fourth‑largest recorded‑music market for 2025 (IFPI Global Music Report 2026; checked Sep 12, 2026).

What you should do next: prioritise short‑video discovery that funnels to free/ad tiers; prepare ad‑supported placement assets (30–60s clips, stems, metadata); monitor QuestMobile/36Kr reports for MAU shifts; and list free‑tier availability in app stores (check Huawei AppGallery).

Sources: 36Kr (Sept 10, 2026) https://eu.36kr.com/en/p/3976220947230985; Music Business Worldwide (May 13, 2026) https://www.musicbusinessworldwide.com/tencent-music-investors-see-bytedances-soda-as-a-major-threat-what-is-it-and-why-are-they-so-worried/; MusicNews.com (Sept 10, 2026) https://www.musicnews.com/news/2026-09-10-tencent-music-launches-ad-supported-free-music-app-amid-intensifying-free-traffic-competition; Tencent Music Q2 2026 press release (Aug 11, 2026) https://ir.tencentmusic.com/2026-08-11-Tencent-Music-Entertainment-Group-Announces-Second-Quarter-2026-Unaudited-Financial-Results?asPDF=1%3B IFPI Global Music Report 2026 https://www.ifpi.org/global-music-report-2026-global-recorded-music-revenues-grow-6-4-as-record-companies-drive-innovation/ (all checked Sep 12, 2026).

Source

musically.com
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