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jenniferlee
2021-08-06

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Crossing the copyright mountain, NetEase Cloud Music won't be "depressed"?

“音乐社区”的生意似乎挣不了多少钱。网易云音乐赴港上市进程又加快一步。 8月1日晚间，港交所官网显示，网易云音乐已通过上市聆讯并上载聆讯后资料集，上市联席保荐人为美林、中金和瑞信。而就在此前一周

Crossing the copyright mountain, NetEase Cloud Music won't be "depressed"?

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{"i18n":{"language":"en_US"},"data":{"magic":2,"id":893960505,"tweetId":"893960505","gmtCreate":1628229849907,"gmtModify":1703503594546,"author":{"id":4089763888690560,"idStr":"4089763888690560","authorId":4089763888690560,"authorIdStr":"4089763888690560","name":"jenniferlee","avatar":"https://static.tigerbbs.com/fc7ae53b0837627f7063458f7b36d928","vip":1,"userType":1,"introduction":"","boolIsFan":false,"boolIsHead":false,"crmLevel":1,"crmLevelSwitch":0,"individualDisplayBadges":[],"fanSize":0,"starInvestorFlag":false},"themes":[],"images":[],"coverImages":[],"extraTitle":"","html":"<html><head></head><body>❤️</body></html>","htmlText":"<html><head></head><body>❤️</body></html>","text":"❤️","highlighted":1,"essential":1,"paper":1,"likeSize":0,"commentSize":0,"repostSize":0,"favoriteSize":0,"link":"https://ttm.financial/post/893960505","repostId":1194508517,"repostType":4,"repost":{"id":"1194508517","kind":"news","pubTimestamp":1628226271,"share":"https://ttm.financial/m/news/1194508517?lang=en_US&edition=fundamental","pubTime":"2021-08-06 13:04","market":"hk","language":"zh","title":"Crossing the copyright mountain, NetEase Cloud Music won't be \"depressed\"?","url":"https://stock-news.laohu8.com/highlight/detail?id=1194508517","media":"亿欧网","summary":"“音乐社区”的生意似乎挣不了多少钱。\n\n网易云音乐赴港上市进程又加快一步。\n8月1日晚间，港交所官网显示，网易云音乐已通过上市聆讯并上载聆讯后资料集，上市联席保荐人为美林、中金和瑞信。\n而就在此前一周","content":"The \"music community\" business doesn't seem to make much money. The process of NetEase Cloud Music's listing in Hong Kong has been accelerated another step.On the evening of August 1, the official website of the Hong Kong Stock Exchange showed that NetEase Cloud Music had passed the listing hearing and uploaded the post-hearing data set. The joint sponsors of the listing were Merrill Lynch, CICC and Credit Suisse.Just the previous week, on July 24, the State Administration for Market Regulation announced the administrative penalty decision against Tencent, ordering Tencent and its affiliated companies (mainly referring to Tencent Music, which includes Kugou Music, QQ Music and Kuwo Music) to lift the exclusive music copyright within 30 days, stop payment methods of copyright fees such as high advance payments, and impose a fine of 500,000 yuan.This means the end of the era of exclusive copyright of online music. The key node of NetEase Cloud Music's listing is favorable, which also makes the market have more expectations for its development prospects.However, even if it crosses the copyright mountain, NetEase Cloud Music still faces many challenges. Judging from the data in the prospectus, NetEase Cloud Music, which has been established for many years, is still in a state of loss. At the same time, in the past two years, short video platforms such as Doukuai have also launched competition for the online music market.Whether capital will pay for the story of \"the first stock in the global music community\" depends on the monetization ability of NetEase Cloud Music.Less profitable \"music community\"NetEase Cloud Music, which carries Ding Lei's music dream, was officially launched in 2013, and submitted a prospectus to the Hong Kong Stock Exchange eight years after its launch. If the process goes smoothly, NetEase Cloud Music will become \"the first stock in the global music community\" and the second listed company in the domestic online music field after Tencent Music Entertainment Group (TME, hereinafter referred to as \"Tencent Music\").Judging from the financial data, it seems that the business of \"music community\" doesn't make much money.According to the prospectus data, NetEase Cloud Music's revenue from 2018 to 2020 was 1.148 billion yuan, 2.318 billion yuan and 4.895 billion yuan respectively, doubling its revenue for two consecutive years; Revenue in the first quarter of 2021 was 1.491 billion yuan, a year-on-year increase of 74.6%.Behind the considerable revenue growth rate, the profitability situation is not optimistic. From 2018 to 2020, the company was in a state of continuous loss, with net losses of 2.006 billion yuan, 2.016 billion yuan and 2.951 billion yuan respectively, and adjusted net profits (unaudited) of 1.81 billion yuan, 1.58 billion yuan and 1.57 billion yuan respectively. In the first quarter of 2021, the adjusted net loss was 280 million yuan.Although losses are narrowing year by year, there is still a significant gap compared with rivals. From 2018 to 2020, Tencent Music's net profits were 1.833 billion yuan, 3.982 billion yuan and 4.155 billion yuan respectively; In the first quarter of 2021, the net profit was 926 million yuan.<img src=\"https://static.tigerbbs.com/ad55cc5d56adebc9db61f1c446f7b1ce\" tg-width=\"1080\" tg-height=\"663\" referrerpolicy=\"no-referrer\">The prospectus explained that the loss was mainly due to business expansion, which led to an increase in market expenses and research and development expenses. At the same time, the prospectus also admits that the company's profitability is still uncertain. Due to the company's continuous investment in content, research and development, marketing activities, etc., it is expected that it will continue to lose money in the next three years.Although it is in a state of loss, a number of operating data show the strong growth potential of NetEase Cloud Music.According to the prospectus data, in terms of revenue in 2020, the market shares of Tencent Music and NetEase Cloud Music in China's online music field are 72.8% and 20.5% respectively.In terms of revenue scale, Tencent Music's total revenue from 2018 to 2020 was as high as 73.6 billion yuan, while NetEase Cloud Music's total three-year revenue was approximately 8.4 billion yuan, a difference of nearly 10 times.In terms of revenue growth, NetEase Cloud Music performed even better. In 2019 and 2020, the revenue growth rate exceeded 100% for two consecutive years. Although the growth rate declined in the first quarter of 2021, it was also as high as 75%. The huge Tencent Music is relatively inferior, with a revenue growth rate of only 15% in 2020.<img src=\"https://static.tigerbbs.com/fb60e6167e60a9909f349e4613237b67\" tg-width=\"1080\" tg-height=\"666\" referrerpolicy=\"no-referrer\">It is worth noting that,In terms of data that have a key impact on the revenue and profit of online music service platforms, such as the platform's monthly active user scale, paying user scale, and user payment rate, NetEase Cloud Music has more advantages than Tencent Music.<img src=\"https://static.tigerbbs.com/b44d8db2ef7f01b0b7d38f8f14c9bde3\" tg-width=\"1080\" tg-height=\"666\" referrerpolicy=\"no-referrer\">From the perspective of the number of monthly paying users, although there is still a big gap between NetEase Cloud Music and Tencent Music, the growth rates in 2019 and 2020 will be 105% and 85% respectively. In the first quarter of 2021, the number of online music paying users increased from 12.68 million in the same period last year to 24.29 million, a year-on-year increase of 91.5%.According to the prospectus, the growth rate of monthly active users (MAU) of NetEase Cloud Music's online music service, the growth rate of paying users of online music service and the payment rate are all the first in the industry.In the first quarter of 2021, NetEase Cloud Music's online music payment rate has reached 13.3%, exceeding Tencent Music's 9.9%, and judging from the data since 2018, the gap is gradually widening.<img src=\"https://static.tigerbbs.com/f21c24f015945d1196d77b23fabac5ee\" tg-width=\"1080\" tg-height=\"666\" referrerpolicy=\"no-referrer\">Taken together,In terms of revenue scale and paying user scale, Tencent Music far exceeds NetEase Cloud Music; In terms of user scale growth and payment rate, NetEase Cloud Music's performance is better than Tencent Music.Since its establishment in 2013, NetEase Cloud Music has focused on managing the community and cultivated a group of users with high stickiness and brand loyalty. The data shows that as of the end of 2020, the average active user spent 76 minutes on the platform per day. Thanks to this, NetEase Cloud Music still has competitiveness that cannot be ignored despite continuous losses.At present, exclusive copyright is about to become a thing of the past. As the only player in the online music field who can compete with Tencent Music, the development prospects of NetEase Cloud Music present more possibilities.Over the Copyright MountainCompared with the recent critical hits of listed companies in many fields by policies, NetEase Cloud Music seems to have a little more luck.On July 24th, the market supervision department imposed anti-monopoly penalties on Tencent Group in the online music field, announcing the end of the era of exclusive music copyright. This also means that the copyright cost problem that has plagued platforms such as NetEase Cloud Music for many years will be greatly alleviated.In the past few years, the copyright dispute in the online music market has always been fierce. Tencent Music has dragged down many rivals by virtue of its copyright advantages in exchange for abundant capital. While each company is competing for the exclusive copyright of music, it also makes copyright licensing fees rise, which brings higher operating costs.In 2017, the National Copyright Administration interviewed the leaders of platforms such as Tencent Music, NetEase Cloud Music, and Ali Music, and proposed requirements such as not driving up prices, vicious bidding, and avoiding purchasing exclusive copyrights.Then in February 2018, NetEase Cloud Music and Tencent Music reached an agreement to authorize 99% of music copyrights to each other. But even so, the platform can still build its own moat with that 1% advantage.Relevant data shows that at that time, the number of exclusive music copyrights owned by Tencent was about 5 million. Calculated based on 1%, the number of exclusive music retained was nearly 50,000, and most of them were popular music with high popularity and playback volume, including Jay Chou, a pop musician with a large number of fans. Relying on this exclusive music, Tencent Music has been able to maintain a large proportion of the market share.In this exclusive copyright competition,High copyright fees have forced many online music platforms such as Xiami and Duomi to stop. Although NetEase Cloud Music has not been crushed, it has also been plagued by copyright costs for a long time.Netease CEO Ding Lei once complained about this issue in public. On May 16, 2021, in NetEase's first quarter earnings conference call, Ding Lei talked about the cost of music copyrights. Some companies control the market, which makes the annual copyright rental cost very high.The prospectus also mentioned that music copyright-related expenses account for most of NetEase Cloud Music's revenue costs. From 2018 to 2020, the company's content costs were 1.97 billion yuan, 2.85 billion yuan and 4.79 billion yuan respectively, accounting for 171.7%, 123.1% and 97.8% of revenue. This is also the main reason for the loss of NetEase Cloud Music.Even Tencent Music, which owns most of the exclusive copyrights, has paid a huge price in copyright.Tencent Music's financial report for the first quarter of 2021 shows that due to the increase in royalty-related content fees and revenue sharing fees, the revenue cost in the first quarter was 5.36 billion yuan, an increase of 23.6% over the same period last year.Therefore, this sanction against exclusive copyright also means that the industry will get rid of the heavy copyright burden. As stated in the announcement, this sanction will help to return the focus of industry competition from using capital advantages to grab copyright resources to the rational track of innovating service levels and improving user experience.The story of the music communityIn the face of strong competitors, NetEase Cloud Music has always adhered to the positioning of \"music community\". Since its establishment, it has successively launched highly interactive functions including Cloud Village and \"Mlog\" based on UGC content. Judging from the prospectus, the company's future strategy includes strengthening the construction of music community and strengthening the support of original music.But in the face of the containment of Tencent Music, Kuaishou, and Douyin, what NetEase Cloud Music needs to do is not only to maintain the revenue speed, but also to actually increase profits.At present, NetEase Cloud Music's revenue mainly comes from two major business segments, one isOnline music services,Including membership subscriptions, advertising services and others; The other piece isSocial entertainment services and others, including online karaoke, live audio broadcast, etc.Among them, online music services contribute the main source of revenue, but their proportion of revenue is declining year by year. In Q1 2018-2021, the revenue of the online music service segment accounted for 89.4%, 76.6%, 53.6% and 50.9% respectively.On the contrary, another business segment, social entertainment services, showed strong growth momentum. From 2018 to 2021, Q1 revenue accounted for 10.6%, 23.4%, 46.4% and 49.1% respectively, which is likely to surpass the former.In the social entertainment service sector, the heavy punch product is the live broadcast product launched in the second half of 2018-\"LOOK Live\". With the help of the live broadcast function, the traffic accumulated by the music community is activated and realized. Currently, this product contributes most of the revenue of the social entertainment service segment.The social entertainment service sector represented by live broadcast products is likely to develop into the company's largest source of income in the near future.<img src=\"https://static.tigerbbs.com/be2ab671b0c988d8380342ccf975e160\" tg-width=\"1080\" tg-height=\"662\" referrerpolicy=\"no-referrer\">However, the current profitability of this business is still unstable.Although after the launch of live broadcast products, the monthly revenue per paying user of social entertainment services jumped to 477.6 yuan in 2019, and further increased to 573.8 yuan in 2020, the scale of its monthly paying users cannot be compared with that of online music services.Data show that the number of monthly paying users of social entertainment services increased from 5,800 in 2018 to 91,700 in 2019, and further increased to 327,000 in 2020. In 2020, there are 15.962 million monthly paying users of online music services, nearly 50 times that of social entertainment services.<img src=\"https://static.tigerbbs.com/4e3864869aa8ada73d25a38304d54c7e\" tg-width=\"1080\" tg-height=\"663\" referrerpolicy=\"no-referrer\">In addition, this business is currently facing considerable external competitive pressure.On the one hand, the direct rival Tencent Music has already laid out and laid a good business foundation. According to Tencent Music's financial report, its business segments are mainly online music services and social entertainment services. Among them, the main products of social entertainment services, which account for nearly 70% of revenue, are live broadcast and karaoke, and the representative products are Kugou live broadcast and national karaoke.On the other hand, short video platforms such as Kuaishou and Douyin are also entering the music market.At the beginning of 2021, some media reported that ByteDance had established a music division and was testing a product called \"Feile\", or Douyin would participate in the operation. At the same time, the music distribution platform \"BeatDynamic\" is also being tested.On May 26, Kuaishou launched the music application \"Komori Sing\", providing users with functions such as using AI to create exclusive original songs, K songs, and short video KTV online.In addition, even if the exclusive copyright is no longer available, the copyright cost will still be a big expenditure. Moreover, without the constraint of exclusive copyright, more players will probably return to the game, and the intensity of competition in the market will rise instead of falling, which is also an inevitable tough battle for NetEase Cloud Music.Epilogue\"Sense of belonging\", \"spiritual home\" and \"resonance\" are the main reasons why many loyal users of NetEase Cloud Music choose to stay in this App. Messages in the comment area that can repeatedly hit people's hearts are superior to the interface design of most platforms, and the \"personality recommendation\" that can always hit users' preferences is also the attraction that users constantly mention.However, many users have also noticed that NetEase Cloud Music has undergone some changes in the process of pursuing commercial interests.\"NetEase Cloud's personalized recommendations are not as good as before\", \"It's getting more and more stale after many revisions\", \"There are more advertisements, and there are fee items for membership\"... In the topic of NetEase Cloud Music on social platforms, Similar remarks became common.How to achieve business goals while maintaining the original intention and maintaining the basic disk of this sentimental product is a key to determining how far NetEase Cloud Music can go in the future.","source":"yow","collect":0,"html":"<!DOCTYPE html>\n<html>\n<head>\n<meta http-equiv=\"Content-Type\" content=\"text/html; charset=utf-8\" />\n<meta name=\"viewport\" content=\"width=device-width,initial-scale=1.0,minimum-scale=1.0,maximum-scale=1.0,user-scalable=no\"/>\n<meta name=\"format-detection\" content=\"telephone=no,email=no,address=no\" />\n<title>Crossing the copyright mountain, NetEase Cloud Music won't be \"depressed\"?</title>\n<style type=\"text/css\">\na,abbr,acronym,address,applet,article,aside,audio,b,big,blockquote,body,canvas,caption,center,cite,code,dd,del,details,dfn,div,dl,dt,\nem,embed,fieldset,figcaption,figure,footer,form,h1,h2,h3,h4,h5,h6,header,hgroup,html,i,iframe,img,ins,kbd,label,legend,li,mark,menu,nav,\nobject,ol,output,p,pre,q,ruby,s,samp,section,small,span,strike,strong,sub,summary,sup,table,tbody,td,tfoot,th,thead,time,tr,tt,u,ul,var,video{ font:inherit;margin:0;padding:0;vertical-align:baseline;border:0 }\nbody{ font-size:16px; line-height:1.5; color:#999; background:transparent; }\n.wrapper{ overflow:hidden;word-break:break-all;padding:10px; }\nh1,h2{ font-weight:normal; line-height:1.35; margin-bottom:.6em; }\nh3,h4,h5,h6{ line-height:1.35; margin-bottom:1em; }\nh1{ font-size:24px; }\nh2{ font-size:20px; }\nh3{ font-size:18px; }\nh4{ font-size:16px; }\nh5{ font-size:14px; }\nh6{ font-size:12px; }\np,ul,ol,blockquote,dl,table{ margin:1.2em 0; }\nul,ol{ margin-left:2em; }\nul{ list-style:disc; }\nol{ list-style:decimal; }\nli,li p{ margin:10px 0;}\nimg{ max-width:100%;display:block;margin:0 auto 1em; }\nblockquote{ color:#B5B2B1; border-left:3px solid #aaa; padding:1em; }\nstrong,b{font-weight:bold;}\nem,i{font-style:italic;}\ntable{ width:100%;border-collapse:collapse;border-spacing:1px;margin:1em 0;font-size:.9em; }\nth,td{ padding:5px;text-align:left;border:1px solid #aaa; }\nth{ font-weight:bold;background:#5d5d5d; }\n.symbol-link{font-weight:bold;}\n/* header{ border-bottom:1px solid #494756; } */\n.title{ margin:0 0 8px;line-height:1.3;color:#ddd; }\n.meta {color:#5e5c6d;font-size:13px;margin:0 0 .5em; }\na{text-decoration:none; color:#2a4b87;}\n.meta .head { display: inline-block; overflow: hidden}\n.head .h-thumb { width: 30px; height: 30px; margin: 0; padding: 0; border-radius: 50%; float: left;}\n.head .h-content { margin: 0; padding: 0 0 0 9px; float: left;}\n.head .h-name {font-size: 13px; color: #eee; margin: 0;}\n.head .h-time {font-size: 12.5px; color: #7E829C; margin: 0;}\n.small {font-size: 12.5px; display: inline-block; transform: scale(0.9); -webkit-transform: scale(0.9); transform-origin: left; -webkit-transform-origin: left;}\n.smaller {font-size: 12.5px; display: inline-block; transform: scale(0.8); -webkit-transform: scale(0.8); transform-origin: left; -webkit-transform-origin: left;}\n.bt-text {font-size: 12px;margin: 1.5em 0 0 0}\n.bt-text p {margin: 0}\n</style>\n</head>\n<body>\n<div class=\"wrapper\">\n<header>\n<h2 class=\"title\">\nCrossing the copyright mountain, NetEase Cloud Music won't be \"depressed\"?\n</h2>\n<h4 class=\"meta\">\n\n亿欧网2021-08-06 13:04\n\n</h4>\n</header>\n<article>\nThe \"music community\" business doesn't seem to make much money. The process of NetEase Cloud Music's listing in Hong Kong has been accelerated another step.On the evening of August 1, the official website of the Hong Kong Stock Exchange showed that NetEase Cloud Music had passed the listing hearing and uploaded the post-hearing data set. The joint sponsors of the listing were Merrill Lynch, CICC and Credit Suisse.Just the previous week, on July 24, the State Administration for Market Regulation announced the administrative penalty decision against Tencent, ordering Tencent and its affiliated companies (mainly referring to Tencent Music, which includes Kugou Music, QQ Music and Kuwo Music) to lift the exclusive music copyright within 30 days, stop payment methods of copyright fees such as high advance payments, and impose a fine of 500,000 yuan.This means the end of the era of exclusive copyright of online music. The key node of NetEase Cloud Music's listing is favorable, which also makes the market have more expectations for its development prospects.However, even if it crosses the copyright mountain, NetEase Cloud Music still faces many challenges. Judging from the data in the prospectus, NetEase Cloud Music, which has been established for many years, is still in a state of loss. At the same time, in the past two years, short video platforms such as Doukuai have also launched competition for the online music market.Whether capital will pay for the story of \"the first stock in the global music community\" depends on the monetization ability of NetEase Cloud Music.Less profitable \"music community\"NetEase Cloud Music, which carries Ding Lei's music dream, was officially launched in 2013, and submitted a prospectus to the Hong Kong Stock Exchange eight years after its launch. If the process goes smoothly, NetEase Cloud Music will become \"the first stock in the global music community\" and the second listed company in the domestic online music field after Tencent Music Entertainment Group (TME, hereinafter referred to as \"Tencent Music\").Judging from the financial data, it seems that the business of \"music community\" doesn't make much money.According to the prospectus data, NetEase Cloud Music's revenue from 2018 to 2020 was 1.148 billion yuan, 2.318 billion yuan and 4.895 billion yuan respectively, doubling its revenue for two consecutive years; Revenue in the first quarter of 2021 was 1.491 billion yuan, a year-on-year increase of 74.6%.Behind the considerable revenue growth rate, the profitability situation is not optimistic. From 2018 to 2020, the company was in a state of continuous loss, with net losses of 2.006 billion yuan, 2.016 billion yuan and 2.951 billion yuan respectively, and adjusted net profits (unaudited) of 1.81 billion yuan, 1.58 billion yuan and 1.57 billion yuan respectively. In the first quarter of 2021, the adjusted net loss was 280 million yuan.Although losses are narrowing year by year, there is still a significant gap compared with rivals. From 2018 to 2020, Tencent Music's net profits were 1.833 billion yuan, 3.982 billion yuan and 4.155 billion yuan respectively; In the first quarter of 2021, the net profit was 926 million yuan.<img src=\"https://static.tigerbbs.com/ad55cc5d56adebc9db61f1c446f7b1ce\" tg-width=\"1080\" tg-height=\"663\" referrerpolicy=\"no-referrer\">The prospectus explained that the loss was mainly due to business expansion, which led to an increase in market expenses and research and development expenses. At the same time, the prospectus also admits that the company's profitability is still uncertain. Due to the company's continuous investment in content, research and development, marketing activities, etc., it is expected that it will continue to lose money in the next three years.Although it is in a state of loss, a number of operating data show the strong growth potential of NetEase Cloud Music.According to the prospectus data, in terms of revenue in 2020, the market shares of Tencent Music and NetEase Cloud Music in China's online music field are 72.8% and 20.5% respectively.In terms of revenue scale, Tencent Music's total revenue from 2018 to 2020 was as high as 73.6 billion yuan, while NetEase Cloud Music's total three-year revenue was approximately 8.4 billion yuan, a difference of nearly 10 times.In terms of revenue growth, NetEase Cloud Music performed even better. In 2019 and 2020, the revenue growth rate exceeded 100% for two consecutive years. Although the growth rate declined in the first quarter of 2021, it was also as high as 75%. The huge Tencent Music is relatively inferior, with a revenue growth rate of only 15% in 2020.<img src=\"https://static.tigerbbs.com/fb60e6167e60a9909f349e4613237b67\" tg-width=\"1080\" tg-height=\"666\" referrerpolicy=\"no-referrer\">It is worth noting that,In terms of data that have a key impact on the revenue and profit of online music service platforms, such as the platform's monthly active user scale, paying user scale, and user payment rate, NetEase Cloud Music has more advantages than Tencent Music.<img src=\"https://static.tigerbbs.com/b44d8db2ef7f01b0b7d38f8f14c9bde3\" tg-width=\"1080\" tg-height=\"666\" referrerpolicy=\"no-referrer\">From the perspective of the number of monthly paying users, although there is still a big gap between NetEase Cloud Music and Tencent Music, the growth rates in 2019 and 2020 will be 105% and 85% respectively. In the first quarter of 2021, the number of online music paying users increased from 12.68 million in the same period last year to 24.29 million, a year-on-year increase of 91.5%.According to the prospectus, the growth rate of monthly active users (MAU) of NetEase Cloud Music's online music service, the growth rate of paying users of online music service and the payment rate are all the first in the industry.In the first quarter of 2021, NetEase Cloud Music's online music payment rate has reached 13.3%, exceeding Tencent Music's 9.9%, and judging from the data since 2018, the gap is gradually widening.<img src=\"https://static.tigerbbs.com/f21c24f015945d1196d77b23fabac5ee\" tg-width=\"1080\" tg-height=\"666\" referrerpolicy=\"no-referrer\">Taken together,In terms of revenue scale and paying user scale, Tencent Music far exceeds NetEase Cloud Music; In terms of user scale growth and payment rate, NetEase Cloud Music's performance is better than Tencent Music.Since its establishment in 2013, NetEase Cloud Music has focused on managing the community and cultivated a group of users with high stickiness and brand loyalty. The data shows that as of the end of 2020, the average active user spent 76 minutes on the platform per day. Thanks to this, NetEase Cloud Music still has competitiveness that cannot be ignored despite continuous losses.At present, exclusive copyright is about to become a thing of the past. As the only player in the online music field who can compete with Tencent Music, the development prospects of NetEase Cloud Music present more possibilities.Over the Copyright MountainCompared with the recent critical hits of listed companies in many fields by policies, NetEase Cloud Music seems to have a little more luck.On July 24th, the market supervision department imposed anti-monopoly penalties on Tencent Group in the online music field, announcing the end of the era of exclusive music copyright. This also means that the copyright cost problem that has plagued platforms such as NetEase Cloud Music for many years will be greatly alleviated.In the past few years, the copyright dispute in the online music market has always been fierce. Tencent Music has dragged down many rivals by virtue of its copyright advantages in exchange for abundant capital. While each company is competing for the exclusive copyright of music, it also makes copyright licensing fees rise, which brings higher operating costs.In 2017, the National Copyright Administration interviewed the leaders of platforms such as Tencent Music, NetEase Cloud Music, and Ali Music, and proposed requirements such as not driving up prices, vicious bidding, and avoiding purchasing exclusive copyrights.Then in February 2018, NetEase Cloud Music and Tencent Music reached an agreement to authorize 99% of music copyrights to each other. But even so, the platform can still build its own moat with that 1% advantage.Relevant data shows that at that time, the number of exclusive music copyrights owned by Tencent was about 5 million. Calculated based on 1%, the number of exclusive music retained was nearly 50,000, and most of them were popular music with high popularity and playback volume, including Jay Chou, a pop musician with a large number of fans. Relying on this exclusive music, Tencent Music has been able to maintain a large proportion of the market share.In this exclusive copyright competition,High copyright fees have forced many online music platforms such as Xiami and Duomi to stop. Although NetEase Cloud Music has not been crushed, it has also been plagued by copyright costs for a long time.Netease CEO Ding Lei once complained about this issue in public. On May 16, 2021, in NetEase's first quarter earnings conference call, Ding Lei talked about the cost of music copyrights. Some companies control the market, which makes the annual copyright rental cost very high.The prospectus also mentioned that music copyright-related expenses account for most of NetEase Cloud Music's revenue costs. From 2018 to 2020, the company's content costs were 1.97 billion yuan, 2.85 billion yuan and 4.79 billion yuan respectively, accounting for 171.7%, 123.1% and 97.8% of revenue. This is also the main reason for the loss of NetEase Cloud Music.Even Tencent Music, which owns most of the exclusive copyrights, has paid a huge price in copyright.Tencent Music's financial report for the first quarter of 2021 shows that due to the increase in royalty-related content fees and revenue sharing fees, the revenue cost in the first quarter was 5.36 billion yuan, an increase of 23.6% over the same period last year.Therefore, this sanction against exclusive copyright also means that the industry will get rid of the heavy copyright burden. As stated in the announcement, this sanction will help to return the focus of industry competition from using capital advantages to grab copyright resources to the rational track of innovating service levels and improving user experience.The story of the music communityIn the face of strong competitors, NetEase Cloud Music has always adhered to the positioning of \"music community\". Since its establishment, it has successively launched highly interactive functions including Cloud Village and \"Mlog\" based on UGC content. Judging from the prospectus, the company's future strategy includes strengthening the construction of music community and strengthening the support of original music.But in the face of the containment of Tencent Music, Kuaishou, and Douyin, what NetEase Cloud Music needs to do is not only to maintain the revenue speed, but also to actually increase profits.At present, NetEase Cloud Music's revenue mainly comes from two major business segments, one isOnline music services,Including membership subscriptions, advertising services and others; The other piece isSocial entertainment services and others, including online karaoke, live audio broadcast, etc.Among them, online music services contribute the main source of revenue, but their proportion of revenue is declining year by year. In Q1 2018-2021, the revenue of the online music service segment accounted for 89.4%, 76.6%, 53.6% and 50.9% respectively.On the contrary, another business segment, social entertainment services, showed strong growth momentum. From 2018 to 2021, Q1 revenue accounted for 10.6%, 23.4%, 46.4% and 49.1% respectively, which is likely to surpass the former.In the social entertainment service sector, the heavy punch product is the live broadcast product launched in the second half of 2018-\"LOOK Live\". With the help of the live broadcast function, the traffic accumulated by the music community is activated and realized. Currently, this product contributes most of the revenue of the social entertainment service segment.The social entertainment service sector represented by live broadcast products is likely to develop into the company's largest source of income in the near future.<img src=\"https://static.tigerbbs.com/be2ab671b0c988d8380342ccf975e160\" tg-width=\"1080\" tg-height=\"662\" referrerpolicy=\"no-referrer\">However, the current profitability of this business is still unstable.Although after the launch of live broadcast products, the monthly revenue per paying user of social entertainment services jumped to 477.6 yuan in 2019, and further increased to 573.8 yuan in 2020, the scale of its monthly paying users cannot be compared with that of online music services.Data show that the number of monthly paying users of social entertainment services increased from 5,800 in 2018 to 91,700 in 2019, and further increased to 327,000 in 2020. In 2020, there are 15.962 million monthly paying users of online music services, nearly 50 times that of social entertainment services.<img src=\"https://static.tigerbbs.com/4e3864869aa8ada73d25a38304d54c7e\" tg-width=\"1080\" tg-height=\"663\" referrerpolicy=\"no-referrer\">In addition, this business is currently facing considerable external competitive pressure.On the one hand, the direct rival Tencent Music has already laid out and laid a good business foundation. According to Tencent Music's financial report, its business segments are mainly online music services and social entertainment services. Among them, the main products of social entertainment services, which account for nearly 70% of revenue, are live broadcast and karaoke, and the representative products are Kugou live broadcast and national karaoke.On the other hand, short video platforms such as Kuaishou and Douyin are also entering the music market.At the beginning of 2021, some media reported that ByteDance had established a music division and was testing a product called \"Feile\", or Douyin would participate in the operation. At the same time, the music distribution platform \"BeatDynamic\" is also being tested.On May 26, Kuaishou launched the music application \"Komori Sing\", providing users with functions such as using AI to create exclusive original songs, K songs, and short video KTV online.In addition, even if the exclusive copyright is no longer available, the copyright cost will still be a big expenditure. Moreover, without the constraint of exclusive copyright, more players will probably return to the game, and the intensity of competition in the market will rise instead of falling, which is also an inevitable tough battle for NetEase Cloud Music.Epilogue\"Sense of belonging\", \"spiritual home\" and \"resonance\" are the main reasons why many loyal users of NetEase Cloud Music choose to stay in this App. Messages in the comment area that can repeatedly hit people's hearts are superior to the interface design of most platforms, and the \"personality recommendation\" that can always hit users' preferences is also the attraction that users constantly mention.However, many users have also noticed that NetEase Cloud Music has undergone some changes in the process of pursuing commercial interests.\"NetEase Cloud's personalized recommendations are not as good as before\", \"It's getting more and more stale after many revisions\", \"There are more advertisements, and there are fee items for membership\"... In the topic of NetEase Cloud Music on social platforms, Similar remarks became common.How to achieve business goals while maintaining the original intention and maintaining the basic disk of this sentimental product is a key to determining how far NetEase Cloud Music can go in the future.\n<div class=\"bt-text\">\n\n\n source：<a href=\"https://mp.weixin.qq.com/s/Cpt9YgYZpnrRRx4bM7VgEw\">亿欧网</a>\n\n\n</div>\n</article>\n</div>\n</body>\n</html>\n","type":0,"thumbnail":"https://static.tigerbbs.com/4d6504bb41454bce5335835ac4011ce6","relate_stocks":{},"source_url":"https://mp.weixin.qq.com/s/Cpt9YgYZpnrRRx4bM7VgEw","is_english":false,"share_image_url":"https://static.laohu8.com/e9f99090a1c2ed51c021029395664489","article_id":"1194508517","content_text":"“音乐社区”的生意似乎挣不了多少钱。\n\n网易云音乐赴港上市进程又加快一步。\n8月1日晚间，港交所官网显示，网易云音乐已通过上市聆讯并上载聆讯后资料集，上市联席保荐人为美林、中金和瑞信。\n而就在此前一周的7月24日，市场监管总局通报了对腾讯的行政处罚决定，责令腾讯及其关联公司（主要指腾讯音乐，旗下包括酷狗音乐、QQ音乐以及酷我音乐）在30天内解除独家音乐版权、停止高额预付金等版权费用支付方式，并处以50万元罚款。\n这意味着网络音乐独家版权时代的终结。而网易云音乐在上市的关键节点逢此利好，也让市场对其发展前景有了更多的期待。\n不过，即使越过版权大山，网易云音乐面前依然有诸多挑战。从招股书数据来看，成立多年的网易云音乐至今仍处于亏损状态。同时，近两年抖快等短视频平台也开展了对线上音乐市场的争夺。\n资本是否会为“全球音乐社区第一股”的故事买单，关键还是要看网易云音乐的变现能力。\n不太挣钱的“音乐社区”\n承载着丁磊音乐梦的网易云音乐于2013年正式推出，在上线8年之后向港交所提交招股说明书。如果进程顺利，网易云音乐将成为“全球音乐社区第一股”，也是继腾讯音乐娱乐集团（TME，以下称“腾讯音乐”）之后，国内在线音乐领域的第二家上市企业。\n从财务数据来看，“音乐社区”的生意似乎挣不了多少钱。\n招股书数据显示，网易云音乐2018-2020年的营收分别为11.48亿元、23.18亿元和48.95亿元，连续两年营收翻倍；2021年一季度营收14.91亿元，同比增长74.6%。\n可观的营收增速背后，盈利的情况却并不乐观。2018-2020年，公司处于持续亏损状态，净亏损分别为20.06亿元、20.16亿元和29.51亿元，经调整后的净利润（未经审计）分别为18.1亿元、15.8亿元和15.7亿元；2021年一季度，调整后净亏损为2.8亿元。\n虽然亏损在逐年收窄，但与对手相比还是差距明显。2018-2020年，腾讯音乐净利润分别为18.33亿元、39.82亿元和41.55亿元；2021年一季度，净利润为9.26亿元。\n\n招股书解释称，亏损主要是由于业务扩张，导致市场费用及研发费用增加。同时招股书也坦承，公司的盈利能力尚存在不确定性，由于公司对内容、研发、营销活动等方面的持续投入，预计未来三年还将持续亏损。\n尽管处于亏损状态，但多项经营数据却显示出网易云音乐强大的增长潜力。\n招股书数据显示，按2020年的收入计，在中国在线音乐领域中腾讯音乐及网易云音乐的市场份额分别为72.8%及20.5%。\n在营收规模方面，2018-2020年腾讯音乐的营收总和高达736亿元，而网易云音乐三年收入总和约为84亿元，两者相差近10倍。\n在营收增速方面，网易云音乐表现更亮眼，在2019年、2020年连续两年营收增速超过100%，2021年一季度增速虽然有所下滑，但也高达75%。而体量庞大的腾讯音乐则相对逊色，其中2020年的营收增速仅为15%。\n\n值得关注的是，对在线音乐服务平台的营收和利润有着关键影响的数据上，如平台月活用户规模、付费用户规模以及用户付费率等，网易云音乐都较腾讯音乐更有优势。\n\n从月付费用户数来看，网易云音乐与腾讯音乐虽然尚有不小的差距，但在2019年、2020年增速分别为105%和85%。2021年第一季度，在线音乐付费用户数从去年同期的1268万增至2429万，同比增长91.5%。\n招股书显示，网易云音乐在线音乐服务月活（MAU）增速、在线音乐服务付费用户增速和付费率均为行业第一。2021年第一季度，网易云音乐在线音乐付费率已经达到13.3%，超过了腾讯音乐的9.9%，且从2018年以来的数据来看，差距正在逐步拉大。\n\n综合来看，在营收规模和付费用户规模上，腾讯音乐远超网易云音乐；而在用户规模增速和付费率方面，网易云音乐的表现则优于腾讯音乐。\n自2013年成立以来，网易云音乐就着力经营社区，培养了一批有着高度粘性和品牌忠诚度的用户。数据显示，截至2020年末，平均每名活跃用户每天花在平台上的时间高达76分钟。得益于此，网易云音乐在持续亏损状态下，仍然有不容忽视的竞争力。\n眼下，独家版权即将成为过去式，作为在线音乐领域仅存的能与腾讯音乐对垒的选手，网易云音乐的发展前景呈现出更多可能性。\n越过版权大山\n与近期多个领域上市公司受政策暴击相比，网易云音乐似乎多了一点好运气。\n7月24日，市场监管部门对腾讯集团在线上音乐领域的反垄断处罚，宣告着音乐独家版权时代的终结。这也意味着困扰网易云音乐等平台多年的版权成本问题，将得到大幅度的缓解。\n过去几年，在线音乐市场的版权之争始终很激烈，腾讯音乐凭借雄厚资本换来的版权优势，拖垮了多家对手。各家在争夺音乐独家版权的同时，也让版权授权费用水涨船高，带来了更高的运营成本。\n2017年，国家版权局就曾约谈腾讯音乐、网易云音乐和阿里音乐等平台负责人，提出不得哄抬价格、恶性竞价，避免采购独家版权等要求。\n之后在2018年2月，网易云音乐与腾讯音乐达成协议，互相授权99%的音乐版权。不过即便如此，平台依然能凭借那1%的优势，构筑起自己的护城河。\n相关数据显示，彼时腾讯拥有的独家音乐版权数量约500万首，按照1%计算，保留的独家音乐数量也有近5万首，且大部分为热度及播放量较高的流行音乐，其中就包括了粉丝数量庞大的流行音乐人周杰伦。靠着这一部分独家音乐，腾讯音乐得以守住很大比例的市场份额。\n在这一场独家版权竞争中，高企的版权费用先后逼停了虾米、多米等多家在线音乐平台。网易云音乐虽然没有被击垮，但也长期受到版权成本的困扰。\n网易CEO丁磊曾在公开场合对此问题提出过控诉。2021年5月16日，在网易第一季度财报电话会议上，丁磊就音乐版权成本问题谈道，一些公司控制市场，使得每年版权的租赁成本被抬得很高。\n招股书中也提到，音乐版权相关费用占据了网易云音乐营收成本的大部分。2018-2020年，公司内容成本分别为19.7亿元、28.5亿元和47.9亿元，占收入比例为171.7%、123.1%和97.8%。这也是导致网易云音乐亏损的主要原因。\n即使是拥有了绝大部分独家版权的腾讯音乐，也在版权方面付出了巨大代价。腾讯音乐2021年一季度财报显示，由于版税相关内容费用和收入分成费用增长，第一季度营收成本为53.6亿元，较上年同期增长23.6%。\n因此这次针对独家版权的制裁，也意味着行业将摆脱沉重的版权负担。正如公告所说，这一制裁将有利于将行业竞争的焦点，从利用资本优势抢夺版权资源，回归到创新服务水平、提高用户体验的理性轨道上来。\n音乐社区的故事\n面对强大的竞争对手，网易云音乐选择始终紧守“音乐社区”的定位。成立以来，先后上线包括云村、以UGC内容为主的“Mlog”等具有较强交互性的功能。从招股说明书来看，公司未来的战略包括了强化音乐社区建设、强化原创音乐的扶持。\n但面对腾讯音乐、快手、抖音们的围堵，网易云音乐要做的不仅是保持住营收速度，还要切切实实将利润提上来。\n目前，网易云音乐营收主要来自于两大板块业务，一块是在线音乐服务，包括会员订阅、广告服务及其他；另一块是社交娱乐服务及其他，包括线上K歌、音频直播等。\n其中，在线音乐服务贡献了主要的营收来源，不过其营收占比却在逐年下降。2018-2021年Q1，在线音乐服务板块营收占比分别为89.4%、76.6%、53.6%和50.9%。\n相反，另一业务板块社交娱乐服务却呈现强劲的增长势头。2018-2021年Q1营收占比分别为10.6%、23.4%、46.4%和49.1%，大有超越前者的态势。\n在社交娱乐服务板块，重拳产品是在2018年下半年推出的直播产品——“LOOK直播”，借助直播功能，将音乐社区积累的流量激活变现。目前，该产品贡献了社交娱乐服务板块绝大部分收入。\n以直播产品为代表的社交娱乐服务板块，极有可能在不久的将来发展成为公司的第一大收入来源。\n\n不过，这一业务目前的盈利效果尚不稳定。\n虽然推出直播产品后，社交娱乐服务每月每付费用户收入在2019年一跃达到477.6元，在2020年更是进一步提升至573.8元，但其月付费用户规模与在线音乐服务还不能相提并论。\n数据显示，社交娱乐服务月付费用户数由2018年的5800人增至2019年的9.17万人，在2020年进一步增长到32.7万人。而2020年在线音乐服务月付费用户已有1596.2万，是社交娱乐服务的将近50倍。\n\n此外，这一业务目前也面临不小的外部竞争压力。\n一方面，直接对手腾讯音乐早已布局，并且已经打下了较好的业务基础。根据腾讯音乐财报，其业务板块主要也是在线音乐服务和社交娱乐服务。其中，营收占比近7成的社交娱乐服务，主打产品正是直播和K歌，代表产品是酷狗直播和全民K歌。\n另一方面，快手、抖音等短视频平台也正在进军音乐市场。\n2021年初，有媒体报道字节跳动已成立了音乐事业部，正在测试一款名为“飞乐”的产品，或由抖音参与运营。同时，音乐发行平台“BeatDynamic”也正在测试中。\n5月26日，快手上线了音乐应用“小森唱”，为用户提供用AI打造专属原创歌曲、K歌、短视频KTV上线等功能。\n另外，即使独家版权不再，版权成本仍将是一笔不小的支出。而且没有了独家版权这一掣肘，更多的玩家将有可能重归赛场，市场的竞争激烈程度不降反升，对网易云音乐而言也是一场不能避免的硬仗。\n尾声\n“归属感”、“精神家园”、“共鸣”，是众多网易云音乐忠诚用户选择停留在这款App的主要原因。屡屡能击中人心的评论区留言，优于多数平台的界面设计，总能切中用户喜好的“个性推荐”等，也是用户们不断提及的吸引力。\n但许多用户也察觉到，在追逐商业利益的过程中，网易云音乐有了些许的变化。\n“网易云的个性推荐不如以前好了”、“改版多次后越来越变味了”、“广告多了，开了会员还有收费项目”……在社交平台关于网易云音乐的话题中，类似的言论变得常见。\n如何在实现商业目标的同时保持初心，守住属于这一情怀产品的基本盘，是决定网易云音乐未来能走多远的一大关键。","news_type":1,"symbols_score_info":{"90033":0.9}},"isVote":1,"tweetType":1,"viewCount":1043,"commentLimit":10,"likeStatus":false,"favoriteStatus":false,"reportStatus":false,"symbols":[],"verified":2,"subType":0,"readableState":1,"langContent":"EN","currentLanguage":"EN","warmUpFlag":false,"orderFlag":false,"shareable":true,"causeOfNotShareable":"","featuresForAnalytics":[],"comment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