(Reuters) - Tencent Music Entertainment ( TME ) reported a smaller than expected fall in quarterly revenue on Tuesday, cushioned by an increase in paying subscribers at its music streaming platforms.

The Tencent Holdings ( TCTZF )-controlled company said revenue fell 1.7% to 7.16 billion yuan ($999 million) in the three months ended June 30, the fourth straight quarterly drop as it struggles with Beijing's crackdown on live-streaming.

However, that was just ahead of analysts' average forecast of 7.14 billion yuan, according to LSEG data, helped by a 27.7% increase at its online music business.

The number of paying users at the music streaming business rose 17.7% to 117 million, as targeted promotions via telecoms companies as well as e-commerce and video platforms bore fruit.

Quarterly revenues at the company's social entertainment business, which includes live-streaming, dropped 42.8%.

Beijing began a crackdown on live-streaming nearly a year ago as part of a broader effort to regulate online gambling.

According to analysts, live streamers have sometimes colluded with viewers to manipulate popular lucky draws and share prizes.

In response to the regulatory pressures, Tencent Music discontinued several live-streaming features.

The company's U.S.-listed shares were down 7.8% in premarket trading.

($1 = 7.1701 Chinese yuan renminbi)