This cooperation is quite interesting. Ali has always had plans to enter the music field and has made many attempts in the music industry, but all received mediocre response. This US$700 million investment is Alibaba’s largest investment in the music industry. It seems that it has pinned its music dream on NetEase Cloud Music. If you want to find the answer to the question, you have to start from 2013.
Since its birth, online music has shouldered the important task of inheriting and changing the music world. This new form of music consumption has been widely praised as soon as it appeared. The number of users has soared, and it has huge potential and room for growth. With the rapid development of mobile Internet, online music is also booming with this spring breeze.
In April 2013, NetEase released a new product, NetEase Cloud Music, officially entering the online music field. However, from a time perspective, NetEase Cloud Music has lagged far behind.
According to relevant data, China's online music market reached 39.71 billion yuan in 2013, which has been the fifth consecutive year of growth, and the growth rate has exceeded 6%.
The fledgling NetEase Cloud Music is facing unprecedented fierce competition in the online music market. Almost all established music brands such as Kugou, Kuwo, QQ, Xiami, and Tiantian Dongting have been around for more than five years. They have deep user bases and have occupied 80% of the market share of online music apps.
As a latecomer, NetEase Cloud Music does not have an advantage in terms of entry time, capital behind it, or user base. How easy is it to seize food from the tiger's mouth and come from behind in such a divided situation?
But NetEase Cloud Music really did it. In just two years, NetEase Cloud Music has achieved the feat of exceeding 100 million users, creating a Red Sea miracle of win-win reputation and user numbers. In one fell swoop, he overthrew many seniors in the music industry and broke into the first echelon of the music market, where he continues to this day.
The secret behind the rapid rise of NetEase Cloud Music is actually four words: music socialization.