Hasta La Creative!

Tencent Holdings’ shopping spree on premium content from Game of Thrones to NBA broadcasts has again helped defy investors’ expectations and a slowing Chinese economy.

Second-quarter sales and profit soared as the operator of the WeChat and QQ social network services splashed out on mobile games and content, including anything from anime and comics to novels. That strategy paid off as user numbers grew and online advertising revenue swelled 60%, confounding fears about marketing cutbacks.

Tencent is paying upfront for rich media titles to tap the purchasing power of its billion-plus users and appeal to advertisers. It’s an approach mirrored by Alibaba Group Holding, which — while making forays into cloud computing and overseas — is also shelling out for videos, music and games to cater to a domestic audience hungry for high-quality programming. Costs overall for Tencent almost doubled in the quarter.

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