Il yun, china business journalMusicThe listing process is a mystery again. On 9 august, there were reports that internet-based music had been postponed to hong kong after the hearing at the hong kong counter. The news has not yet been commented on by online cloud music. As an independent sub-company that separates it from the internet, the road to the internet cloud music is a one-and-a-half-thirty-year loss of billions of dollarsProfitThe way? Cancel the exclusiveCopyrightWill it then find a new business, the moat
5 billion in three years
The online music industry in our country has been faced with a problem of profitability, including internet-enabled music。
An account of the collections of web-enabled cloud-enabled music has shown a rapid increase in recent years, from $1. 1 billion in 2018 to $4. 9 billion in 2020, and from 2018 to 2020, the online music service mau (number of monthly active users) was 105 million, 147 million and 181 million, respectively, while the number of online music subscriptions was 4. 2 million, 86. 33 million and 16 million. In the first quarter of 2021, the online music service mau for web-enabled music increased from 170 million during the same period last year to 183 million; the number of online music pay users increased to 24. 29 million, an increase of 91. 5 per cent over the same period。
Specifically, online music services are the “pillars” of the web-enabled music business, but their share continues to decline. Between 2018 and 2020, this portion of business income accounted for 89. 4 per cent, 76. 6 per cent and 53. 6 per cent of corporate income, respectively. In the meantimeSocialThe share of revenue from recreational services and other operations has steadily increased, from 10. 6 per cent in 2018 to 46. 4 per cent in 2020。
At the same time as the collection and the number of users has increased, the web-enabled cloud music continues to suffer a loss of about rmb 1. 8 billion, rmb 1. 6 billion and rmb 1. 6 billion, respectively, from 2018 to 2020. In the first quarter of this year, net losses from the adjusted cloud-friendly music were reduced to $300 million from $500 million in the same period last year, and are expected to continue to run until 2021, 2022 and 31 december 2023。
The main reason for the loss of the platform is the high cost of content. Between 2018 and 2020, the cost of web-enabled music content services was rmb 1. 97 billion, rmb 2. 85 billion and rmb 4. 79 billion, respectively, representing a collection rate of 171. 7 per cent, 123. 1 per cent and 97. 8 per cent。
It is the view of industry that market financing will provide adequate financial support for the future path of internet-enabled music. “it is at the heart of the list that it is intended to finance and to supplement the funds for the follow-up development of web-enabled music.” liao xuhua, a senior analyst at the easy to view and recreation industry centre, said to the chinese newspaper correspondent。
Cyber cloud music is also mentioned in the book, and it is proposed that the ipo raise money mainly for the continuation of deep-tilled music communities, the enrichment of diverse music content, the continuation of innovation and the enhancement of technical capacity, and the selection of mergers, acquisitions and strategic investments, operations and general business applications。
Is socialization profitable
Unlike other online music software, the music community ecology of web-enabled music is the key to its “poaching”, and it has been “circleed” for comments on a number of occasions and has been dubbed “cyber cloud music”。
As early as april 2013, when the web-enabled music came online, the web-enabled ceo tintin positioned the internet-enabled music as a new form of “mobile music community”, surrounding the discovery and sharing of music and creating a circle of individuals characterized by social interaction among users. Web-enabled music is based entirely on the list created by the users, bringing music from singles and albums to the full range of musical applications of the single age. Users can create, collect and share songs according to their preferences, thus increasing the funability of their products。
Whether it is an original “list model”, a musical review or a radio short video, web-enabled cloud music creates a distinct community atmosphere for users and enhances social and interactiveity. In august 2019, the internet cloud music upgraded the yoon village community and introduced new play methods such as mlog, the hot wall, etc。
In recent years, web-enabled music has been reinforcing social attributes, playing an interface in an internet-enabled music song, and by clicking on the top right corner to share the "invite friends to listen" feature, users can invite each other's platform friends to enjoy the same song in real time, or match the strange "hearing friend" who listens together。
The national online music community study, published by the great optical data, shows that the number of users in the online music industry has stabilized and that the industry has moved from the era of incremental dividends to that of stock dividends. Communityization is the main orientation of deep-tilled users, which enriches the content of the platform, enhances its user experience and, in turn, enhances its length and adhesion. Among them, web-enabled music leads the trend towards communityization in its unique music community model, and its users are more loyal。
It is worth noting that the live broadcast operation is seen as one of the profit points for internet-enabled music. “one is the membership, whose number has continued to grow; the other is the ad; the third is our live audio broadcasting, a new platform model for ugc (user's original content); and the fourth is that we will tap deeper social functions of cloud music and socialize communities.” in an interview with the media, tin ting spoke about the cloud-friendly model。
Liao xuhua also indicated that only live broadcasts could help make internet-like music profitable in the short term. In the book, social entertainment services for internet-enabled music are mainly generated from their live broadcasting services. In 2018, internet-enabled music was launched as a live look product, with users buying virtual items to reward the costs of live performances, contributing most of the income from the service。
Can the post-copy rights era break out
With the end of the exclusive copyright era, the development of the online music industry has become more health-regulated, and in the post-copyright era, can cyber cloudy music succeed
The domestic online music market has been growing at a high rate, entering stockCompetitionAt this stage, differentiated copyright resources are increasingly becoming central to the competitiveness of major web-based music platforms, in which competition between entertainment groups and cloud-like music is particularly intense。
On 24 july, the general directorate of state market supervision issued an order for the removal of the sole copyright for online music from penalties such as arraignment, ordering the arraignment and affiliated companies to take measures to restore the state of competition in the market by removing exclusive music copyrights within 30 days, suspending the payment of copyright costs such as high upfront advances, and not requiring upstream copyrighters to grant them conditions that are superior to those of their competitors without justification。
With the lifting of the penalty for exclusive copyright for online music, the development of the online music industry will also be on a more regulated and healthy track, which will also open up new opportunities for cyber cloud-like music, which is troublesome for content services. The founder of the research by a third-party research institute, yu qing, said to chinese journalists that once the threshold of copyright is lowered, platforms such as internet-based music and entertainment groups can be drawn to the same starting line, and resource competition for exclusive copyright is no longer the focus. “future players' mobility and marketing capabilities may be factors in their market share.”
Liao xuhua stated that the universalization of copyright also depends on the successful procurement of the various platforms and is not expected to have a significant impact on the online music competition landscape, but may affect part of the user flow and the overall pattern will not change. The focus of future competition is on empowerment, and who can find ways to empower the country's music and even cultural industries can take up high points, such as music industry services, original music development, integration of cultural brigades, and the upgrading of theatre art lines。
