Comparison of QQ Music and NetEase Cloud Music: QQ Music is one of China's leading digital music platforms, which belongs to Tencent Music Entertainment Group; Tencent Music was listed on the New York Stock Exchange in December 2018, becoming the first listed and only profitable music entertainment company in China.
As digital music platforms, QQ Music and NetEase Cloud Music **** the same point is that both rely on the Internet giant and have a huge traffic entrance and a sticky pool of users, and with quality content as the core to continue to enhance the product's operation and distribution capabilities. However, unlike NetEase Cloud Music, which mainly produces and distributes music, QQ Music, with its own rich copyright resource base and Tencent Music Entertainment Group's cross-module production capacity in the pan-entertainment industry, has expanded its music consumption scenes to create a three-dimensional three-dimensional three-in-one entertainment platform: "listen, watch, play" and "play". QQ Music has expanded the music consumption scene to create a three-dimensional entertainment ecology of "listening, watching and playing". Especially in the area of idol packaging, compared to NetEase Cloud Music's "Independent Musician" program, which focuses on original music, QQ Music is not only able to link up with Tencent's variety show "Creation 101" and other programs to obtain exclusive audio resources, but also through the launch of the relevant self-produced QQ Music has not only been able to link up with Tencent's variety show "Create 101" to obtain exclusive audio resources, but also attracted a large number of fan users by launching related self-produced variety shows, interacting with idols in the comment section, and determining the ranking of singers based on the number of likes of their songs, thus creating more modes of cash generation.
1) Accurate distribution of personalized recommendations to meet users' music preferences: Listening to music is a high-frequency, low immersion, fragmented scenario, and users expect to get music that meets their tastes at a lower search cost. Based on industry-leading big data recommendation algorithms, NetEase Cloud Music continuously pushes high-quality and cold songs of similar styles to users according to their behavioral habits and style preferences, and this function module includes daily recommendations, recommended song lists and private FM. According to DICC's research, NetEase Cloud Music's song recommendation accuracy is the first in the industry, with a personalized recommendation usage rate of 75% and a recommendation accuracy rate of more than 50%, which is known as the music product that "understands you the most" by users.
2) High-quality music UGC community enhances the social activity of the product: NetEase Cloud Music forms a benign UGC chain through "music review + song list", which meets the user's demand for participation in sharing and creation, and establishes a social network by tapping into the emotional connection behind the music, which increases the user's stickiness and sense of belonging to the platform. The social network is established by exploring the emotional connection behind music, increasing user stickiness and a sense of belonging to the platform. On NetEase Cloud Music, more than 50% of users read reviews while listening to songs (the industry average is less than 10%), with more than 900 million music reviews generated and more than 600 million song lists created by users on their own.
3) Rich and diversified segmented music content to expand the platform's commercial space: NetEase Cloud Music has continued to plumb the depths of its music content, and in addition to entering into copyright cooperation with more than 200 music companies such as Abex and HuanYan International, it has also launched the original musician support program, "Stone Plan": more than 70,000 original musicians have been enrolled on the platform, and more than 100,000 of them have been enrolled in the program. More than 70,000 original musicians have joined the platform and uploaded more than 1.2 million pieces of original music. NetEase Cloud Music has a clear advantage in the library and authorship of music vertical segments such as secondary yuan, electro music, national wind, nuclear rock, etc. These niche circles have an independent circle culture and a high degree of loyalty within the circle, which plays an important role in the music platform's pulling of new retention and the formation of the tone.
Overall, NetEaseYunMusic has established a unique brand impression with its diverse and inclusive music content, strong social atmosphere and personalized recommendation algorithms, and has accumulated a large number of loyal users; and most of NetEaseYunMusic's users are young people in first- and second-tier cities, who have good discernment of content production and strong and sustainable spending power. Therefore, we are still optimistic about its long-term development. However, NetEase cloud music in the music copyright disadvantage, and in order to increase user activity, increase the mode of cash, but with the platform's "literary sentiment" of the tone of the live broadcast, stranger social functions may lead to users to switch to the platform of the increased risk.
Netease cloud music was launched in 2013, and in September 2019 completed the B + round of financing, the post-investment valuation of 4.2 billion U.S. dollars. According to the company's financial report, by the end of 2019, the number of registered users of NetEase Yunmusic exceeded 800 million, and as of January 2020, NetEase Yunmusic MAU has reached 150 million, according to QuestMobile. According to the company's financial report, NetEase Cloud Music 1Q20 revenue recorded triple-digit growth year-on-year. In recent years, NetEase Cloud Music has made efforts in both operation and content to differentiate itself from the competition. In terms of operation, NetEase Cloud Music has built a music community, created a community atmosphere, strengthened the user's interactive experience, and increased the layout of the secondary yuan and national style and other categories in line with the attributes of the community users. In terms of content, NetEase Cloud Music has been paying more attention to the support of original music, and has successively launched the "Stone Program", the "Ladder Program", and the NetEase musician program to support original musicians, according to the company's data, as of April 2020, on the occasion of the 7th anniversary of the founding of NetEase Cloud Music, the number of original musicians who have been stationed on the platform has exceeded 160,000, and the number of original musicians has exceeded 1.6 million. The number of original musicians has exceeded 160,000.
China's digital music market is in a stage of rapid growth, with a revenue CAGR of 77.8% between 2013-2018. the market size in 2018 was +60% year-on-year to 7.63 billion yuan. The user scale of digital music market has reached 740 million in 2018, which is a large scale, but the overall industry's payment rate is relatively low at present, and the payment rate is only 5.3% in 2018, which is still a large room for improvement, so it is crucial to operate the stock of users in the future and improve their payment rate.
Netease Cloud Music creates a music community platform for users to discover music, share music, and communicate emotionally through community operations. Through personalized recommendations to accurately reach users, it has launched daily recommendations, private FM, private radar, etc. In August 2019, it started to launch the "Cloud Village" section, where users can create and publish Mlog music logs to meet the needs of users' creativity and communication. Users can create and post Mlogs to meet their needs for creativity and communication. The "Cloud Village" section also features a wall of hot reviews, which allows users to browse the content of hot reviews and start listening to singles attracted by the reviews. The launch of Cloud Village and the platform's music review function not only enhances the user's social experience, but also delivers a certain amount of high-quality UGC content to the platform, which in turn attracts more users and creates positive feedback.