Recently, the State Administration of Market Supervision ordered Tencent Music to cancel the exclusive copyright. Since then, the exclusive copyright monopoly position of Tencent Music has been forced to be interrupted, and the 9-year exclusive copyright model of the domestic online music market has come to an end. With the online music market coming to the post-copyright era, non-exclusive copyright content will begin to blossom in many ways.
On July 28th, Netease Cloud Music confirmed that it was stepping up negotiations with many record companies on non-exclusive copyright cooperation, and many songs were "exclusive songs of Tencent Music" that had been removed from the shelves. At the same time, well-known copyright owners such as Jewell, Believe Music, Modern Sky and Huayan Music have communicated with Netease Cloud Music officials, involving the works of many well-known artists such as Jay Chou, Jolin Tsai, Fish Leong, SHE and Jonathan Lee. Affected by this news, Netease's share price rose continuously on July 28th and 29th.
Previously, Netease Cloud Music has reached music copyright cooperation with the three major record companies in the world. After the end of the exclusive copyright mode, Netease Cloud Music stepped up the layout of non-exclusive copyright content, mainly with the intention of catching up with Tencent Music in content scale to enhance the competitiveness of its own platform.
in terms of scale, the gap between Netease Cloud Music and Tencent Music is still obvious
Due to the late start, the gap between Netease Cloud Music and Tencent Music in terms of user scale and revenue scale is still very obvious.
In terms of monthly living scale, by the end of 22, Tencent Music's monthly living was 644 million, while Netease Cloud Music's data was only 181 million; In terms of the scale of paying users, in 22, the number of paying users of Tencent Music will be 49.4 million, while that of Netease Cloud Music will be 16 million. The monthly living scale and the scale of paying users of Netease Cloud Music will be less than one third of that of Tencent Music.
in terms of revenue scale, in 22, Tencent Music's online music service revenue reached 9.349 billion yuan, while Netease Cloud Music was only 2.623 billion yuan; It can be seen that the gap between Netease Cloud Music and Tencent Music Entertainment Group (TME) is still huge.
terminal: Netease Cloud launched its mobile terminal, and Tencent Music deployed its IOT full-scene terminal
From the channel terminal, Netease Cloud Music, which is positioned as "music socialization", mainly launched its mobile terminal, while Tencent Music is actively expanding other smart terminal channels such as smart TV, car terminal and smart speakers to provide IOT full-scene music services.
In recent years, due to the peak of mobile traffic dividend, the growth of Netease Cloud Music and Tencent Music in mobile users is becoming slower and slower, and the monthly growth of Netease Cloud Music has dropped from 4% in 219 to 23.13% in 22. In 22, the monthly living scale of Tencent Music decreased by 13% year-on-year; Different from the mobile terminal, Tencent Music's IoT MAU scale including in-vehicle systems, smart TVs, smart speakers and other smart devices has reached 69 million, a year-on-year increase of 5%.
with the rapid development of 5G and IOT technologies, the era of intelligent internet of things is accelerating, and music, as an important content product, will take the lead in landing on other intelligent networking terminals; At present, Tencent Music has accelerated the layout on other intelligent networking terminals; On the smart TV side, Dangbei, the largest TV application distributor and TV software service provider in Tencent Music United Nations, launched Dangbei Cool Dog Music with big-screen music application and Dangbei Cool Dog Singing with big-screen K-song application; On the vehicle side, Tencent Music has provided massive audio content for dozens of brand car companies such as Tesla, Mercedes-Benz, Audi, BMW, Volkswagen and Volvo.
After the end of the exclusive copyright mode, the market will shift from the content competition of "exclusive copyright" to the terminal competition of "traffic entrance"
Previously, the anti-monopoly investigation of Tencent Music made the exclusive copyright mode of the market come to an end. In the post-copyright era, non-exclusive copyright content will begin to blossom in many ways, and the market competition will shift from "exclusive copyright" content competition to "traffic portal" terminal competition.
at present, due to the rapid development of 5G and IOT technologies, the mobile internet is entering the era of intelligent internet of things. In the era of intelligent Internet of Things, App is no longer the most important means to capture user information. Intelligent Internet of Things hardware terminals replace pure application software to become data and traffic portals, and cloud computing replaces PC/ mobile phones in the Internet era to become the ecological core, while pan-Internet of Things hardware including smart phones, smart TVs, smart headphones, smart watches, smart homes, wearable devices, AR/VR hardware, industrial Internet of Things, etc. has become the terminal gripper to undertake the information portal function.
With the advent of the intelligent IOT era, the intelligent IOT hardware terminal is rapidly beginning to explode; As an important content product, online music took the lead, and intelligent IOT hardware terminals including smart TV, smart speakers, smart cars, smart watches and wearable devices became the new entrance to access music. Tencent Music, an online music head enterprise, has already preempted the layout and accelerated the landing of other intelligent IOT hardware terminals except mobile phones and PCs.
This time, Netease Cloud Music has accelerated its cooperation with non-exclusive copyright to further expand its music library and narrow the gap with Tencent Music in content scale, so as to enhance its competitiveness. In the post-copyright era, the content of online music platform will no longer be the core of competition when acquiring users. With the application of technologies such as 5G, AI and IOT, online music application scenarios will be further extended. In addition to smart TVs, smart speakers and smart cars being laid out on the online music platform, other smart terminals will also become new entrances and new scenarios for accessing music. In the era of intelligent Internet of Things, online music platforms may compete fiercely in the "terminal entrance". For Netease Cloud Music, which mainly focuses on the mobile terminal, when the dividend on the mobile terminal is gradually disappearing, we should follow the footsteps of Tencent Music to speed up the layout of other smart terminal portals to tap new traffic dividends.