Rewinding music, Tencent music and cloud music all need more thought.

Wen | Entertainment Business Observation Tehran

According to the consulting report, the online music market in China will increase by 33.1% year-on-year to 32.2 billion yuan in 2023, and it is expected to reach 49.5 billion yuan in 2025, and the corresponding social and entertainment industries derived from music are expected to exceed 110 billion yuan.

China’s online music market is growing into one of the hot market targets that attract worldwide attention and focus on watching. What’s more, Netease Cloud Music, as one of the two leading platforms, completed a gorgeous turn last year.

According to the financial report, Netease Cloud Music climbed out of the quagmire with a loss of over 9 billion yuan in five years, and turned losses into profits for the first time in 2023, and achieved a profit of 734 million yuan from a loss of 221 million yuan in 2022, and the gross profit margin increased significantly from 14.38% to 26.73%.

However, the spring breeze is still mixed with the coldness and chill of winter.

On the one hand, the profit of Netease Cloud Music has a lot of luck factors, including the restriction of exclusive copyright at the policy level, which makes the authorized price of music in the market return to rationality and the higher interest rate of US dollar deposit, which also indicates from another side that there is uncertainty in the future of the online music business that has become the core.

On the other hand, as I predicted in the second quarter of last year, Tencent Music was slightly overwhelmed by the income of social entertainment services that continued to decline.

In 2023, Tencent Music’s revenue from social entertainment services and other businesses decreased by 34.2% year-on-year to 10.43 billion yuan, while the Group’s annual revenue in 2023 decreased by 2.1% year-on-year to 27.75 billion yuan.

The initial heart of retiring music

It’s not just Tencent Music.

Faced with the pressure of strong supervision and content rectification from the policy side, it was the consensus of the entire online music market last year to actively shrink and transform the social entertainment service business, including Netease Cloud Music.

According to the financial report, in 2023, the revenue of Netease Cloud Music decreased by 12.5% year-on-year to 7.867 billion yuan, of which the revenue of social entertainment services and other businesses decreased by 33.6% year-on-year to 3.516 billion yuan, and its proportion in total revenue fell from 59% in 2022 to 44.7%.

Not only that, although the number of monthly paying users of this business increased by 20.3% year-on-year to 1.6 million, the monthly income per paying user dropped from 326 yuan in 2022 to 178.6 yuan.

The shift of business focus will inevitably lead to "pain", and from the perspective of financial indicators and user data, Tencent Music is in an advantageous position in the new competition driven by social live broadcast to music members’ payment.

In 2023, the total revenue of Tencent Music was about 3.5 times that of Netease Cloud Music, and its net profit was about 8.5 times. In terms of "revenue pillar"-online music service revenue, Netease Cloud Music (accounting for 55.3%) increased by 17.6% year-on-year to 4.35 billion yuan, and Tencent Music (accounting for 62.3%) increased by 38.8% year-on-year to 17.33 billion yuan, nearly four times that of Netease Cloud Music.

In terms of user data, in 2023, the number of monthly active users of Netease Cloud Music online music service increased by 8.7% year-on-year to 206 million, and the number of monthly paying users increased by 15.3% year-on-year to 44.12 million. Benefiting from this, the membership income of the platform increased by 20.2% to 3.65 billion yuan compared with 2022.

It seems to be thriving, but in fact it is under a lot of pressure.

Compared with the data released by the platform in the first half of 2023, the number of monthly active users of online music service of Netease Cloud Music basically stood still in the second half of the year, and the number of monthly paid users only increased by 2.37 million, and the monthly income per paid user did not change much year-on-year, only from 6.6 yuan to 6.9 yuan.

On the other hand, although the number of monthly users of online music of Tencent Music decreased by 4.2% year-on-year to 576 million, the average monthly income of a single paying user increased for seven consecutive quarters, reaching RMB 10.7 by the end of 2023. At the same time, the number of online music paying users increased by 20.6% year-on-year to 106.7 million, reaching a new high.

Behind a rise and a fall

The formation of the gap is traceable, and the most obvious one is undoubtedly the income of paying users.

According to the consulting data, the number of online music users in China in 2023 was 744 million, with a year-on-year increase of only 3.7%. Among them, users accounted for 54% after 90 and 00.

The scale of paid members of online music service is growing close to the ceiling, and it is difficult to have explosive growth. However, for overseas music platforms such as Spotify, the membership payment space of Tencent Music and Netease Cloud Music is still considerable.

Tencent Music is indeed making efforts in this direction.

At the beginning of December last year, QQ Music recently sent a "reminder on the price change of renewal service" to WeChat users, announcing that from 0: 00 on January 9 this year, the automatic renewal price of QQ Music Green Diamond Deluxe Edition members will all be brought to 15 yuan/month.

Two price increases during the year, and Netease Cloud Music reduced the price of platform student members to 5 yuan/month shortly after the official announcement of the second price increase. Tencent Music’s move not only made QQ music members lose their price advantage, but also caused themselves to fall into a word-of-mouth crisis, and was criticized by many users on social platforms for "eating ugly".

For this result, Tencent Music can’t be unexpected. After all, as early as 2022, Tencent Video, which belongs to the Tencent Department, also attracted a "squeaky sound" because of the continuous price increase of its members during the year, and even led to the loss of its members.

Tencent’s financial report shows that the number of paid members of the platform decreased by 2.4% year-on-year and 1.6% quarter-on-quarter in Q2 2022 when Tencent Video announced the second price increase.

However, there are priorities. Between the overall revenue trend and the maintenance of membership scale, Tencent Music must give priority to the burning eyebrows.

Coincidentally, Netease Cloud Music is doing the opposite, and it is also trying to make online music services provoke a heavier burden.

Compared with Tencent Music, which has entered the scale of 100 million paying users, the penetration rate of Netease Cloud Music still has room for further improvement. The platform also stressed after the announcement of the financial report that this year, it will further focus on scale growth, steadily enhance the profitability of the platform, and promote the ecological and healthy development of Yuncun.

On this basis, like all industries, the choice of young people also determines the future of the music market. At present, in order to cope with the rising cost of living and economic pressure, more and more young people begin to downgrade their consumption and pay more and more attention to cost performance.

Therefore, not only playing "low-priced cards", Netease Cloud Music has really put a lot of thought into meeting the personalized needs of users and improving the quality of platform services.

In January this year, Netease Cloud Music App officially announced a new revision, and released an open letter to users on the same day, apologizing to users for a large number of problems unrelated to music in the past, and at the same time, by changing the brand Slogan back to the 2013 version-"Discover good music", emphasizing that the new version will return to its original heart.

It is worth mentioning that QQ Music also has student members, and the platform clearly emphasizes that "student members are not affected" when the price is raised for the second time.

However, compared with Netease Cloud Music, the student members of QQ Music also have no price advantage, but the age setting range is wider, supporting users aged 13-24 (inclusive), and the benefits are more diversified.

Hard work may not be rewarded

"Fortunately, I didn’t follow the experience", "I thought I entered QQ music", "It’s cumbersome and I always make mistakes", "Change the soup without changing the medicine" …

Netease Cloud Music showed sincerity, but not all users bought it. To sum up, the official propaganda is just a slogan, which even destroys the experience of some users. At the same time, the advertisement does not seem to have a "-1 point". Many users will suddenly pop up advertisements on the homepage of the song when they feedback.

On the other side of the story, we are asking for higher prices to increase Tencent music, and we have not fully figured out how to persuade users to pay for the increased expenses.

In the fourth quarter of 2023, although the year-on-year growth rate of online music service revenue of Tencent Music rebounded, there was still a significant gap compared with 47.6% in the second quarter of last year.

With the extension of this idea, the profitability of Tencent Music is rising, and it is not all due to online music.

According to the financial report, in 2023, the operating cost of Tencent Music decreased by 8.2% year-on-year, and the total operating expenses decreased by 9.7% year-on-year, among which the sales and marketing expenses continued to drop by 21.6% year-on-year.

No matter how well the payment habits are cultivated, the price increase will still provoke the most sensitive nerves of users. On the other hand, although it is the present situation and will be the long-term trend in the future that the number of young people who spend cautiously and flock to the low-price belt increases, what they value is the low price with quality and value.

In other words, it is not a long-term solution to innovate at low prices and increase prices and income. The real competition between the two companies returning to music is to improve the user experience and service quality on the basis of continuously enriching the basic resource of copyright and build their own core competitiveness.

Both Tencent Music and Netease Cloud Music need continuous thinking and exploration on how to be practical and excellent. While the blade continues to move inward, the two companies must also be alert to market encroachment from the outside.

According to the 2023bilibili Music Ecology Report, in 2023, more than 152 million people watched music videos in bilibili, and the total number of broadcasts exceeded 57.3 billion times. In 2023, the number of video contributors to bilibili music scene doubled, and the total number of submissions soared by 189% year-on-year; In the whole year, the big coffee musician ×UP main cross-border planning exceeded 100 times, and the live music activities cooperated over 1100 times; More than 1,500 global star singers have settled in bilibili, and nearly 30,000 new MV songs have been launched.

On the other hand, according to QuestMobile’s data, ByteDance’s "Soda Music" is the fastest growing digital music product in 2023, with a monthly activity of 40 million in the third quarter, an increase of 400%. In response, before the press release, the APP has captured more than 30 million downloads on iOS, occupying the TOP1 of the AppStore music free app list.

Regarding the repeatedly mentioned AI, we can easily feel the determination and persistence of the two companies from the financial report.

The problem is that from the current reality, neither the embracing logic of Tencent Music’s enhanced interactive experience nor Netease Cloud Music’s playing from the ecological advantages of the community has aroused much splash at the user end.

Things change, rivers and lakes float and sink.

For Tencent Music and Netease Cloud Music, music can’t completely act as an antidote to anxiety for the time being. And how far it will go to embrace AI is full of unknowns and possibilities.

A large truck in Guangxi rushed to primary school students, causing 3 deaths and 2 injuries. The accident vehicle was suspected of being overloaded.

  Cctv newsOn March 26, the reporter learned from the traffic police detachment of Guigang Public Security Bureau that on March 24, a large truck collided with students crossing the road after school in Guangren Village, Mule Town, Guiping City, causing one girl to die on the spot, two girls died after being rescued, and two others were injured. After the accident, governments at all levels in Guigang and Guiping, public security traffic police and other departments carried out follow-up investigation and handling work, and it has been determined that the truck involved was suspected of being overloaded. 

  The truck was suspected of being overloaded.

  According to the investigation by the Traffic Police Brigade of Guiping Public Security Bureau, the driver Liang was from Luchuan County, Guangxi. At 11 o’clock on the morning of March 23, Liang drove a heavy van of Gui K brand to carry sugar from a sugar factory in Longan, Baise to Guangzhou, stopping for three times, and stopping for dinner in Shizui Town, Guiping City before the incident. After the accident, the traffic police department checked the vehicle situation and found that the approved load mass of the truck was 40 tons, while the sugar loaded on the truck was 58 tons. At present, the public security organs have criminally detained Liang, and the traffic police department has also sent the accident vehicle to the judicial technical appraisal department for various performance tests.

  The traffic facilities in the accident section are perfect.

  After on-the-spot investigation by the accident handling police, the road section is 304 provincial highway, and the whole line is equipped with large-scale car speed limit signs. There is a crosswalk (zebra crossing) at the accident site, with clear markings, a speed bump 230 meters away from the zebra crossing, and a warning sign to avoid children and students 77 meters away.

  Carry out investigation and rectification to prevent problems before they happen

  After the accident, Huang Weijing, vice chairman of the government of Guangxi Zhuang Autonomous Region, gave instructions to attach great importance to it and quickly organize forces to deal with it. On March 25th, the joint meeting on road traffic safety in Guigang issued a notice to the offices of the joint meeting on road traffic safety in counties, cities and districts, as well as to all member units, to deploy and carry out the major investigation and rectification of traffic safety hidden dangers around the campus.

  The traffic police department of Guigang City quickly investigated and rectified the hidden dangers around the campus for all primary and secondary schools and kindergartens in its jurisdiction, focusing on the establishment and integrity of signs and markings such as traffic warning signs, zebra crossings and speed limit signs along the national and provincial roads around the campus. Understand the daily work style of the school when organizing students to go to school and cross the road, and urge the school to learn the lessons of the 3.24 traffic accident in Guiping and attach importance to the safety guidance of students to go to school and cross the road.

  Enter the passenger and freight enterprises in the jurisdiction, urge the person in charge of the enterprise to strengthen management, investigate the hidden performance hazards of trucks and vehicles and traffic violations, organize freight drivers to carry out traffic safety publicity and education activities, improve drivers’ awareness of civilized and safe driving, and prevent traffic accidents from the source. Intensify efforts to rectify road traffic violations of key vehicles such as trucks, buses and dangerous goods transport vehicles, and strictly investigate serious traffic violations such as overloading, overcrowding, illegal modification, illegal overloading and transportation, license-related, drunk driving, and fatigue driving.

  It is reported that the traffic police department of Guigang City will also convene relevant departments to hold a road traffic safety contact meeting in the near future to study the traffic safety management around the campus and explore the establishment of a long-term management mechanism for traffic safety around the campus. (CCTV reporter Fu Qien Ryson Ho)

Real estate stocks are boiling collectively! The real estate situation has undergone a major turning point.

Affected by the latest tone of the Politburo meeting, real estate stocks are boiling collectively.

After the market opened on July 25th, the real estate development sector continued to strengthen, with Rong Sheng Development, Jinke and Zhongnan Construction increasing daily, while Dima, Huayuan Real Estate, Tianfang Development, gemdale, Binjiang Group, Caixin Development, Xincheng Holding, Poly Development, Huafa and SIC were among the top gainers, while only one of the sector’s constituent stocks declined slightly.

In terms of Hong Kong stock real estate, Longhu Group increased by as much as 21.92%, Country Garden Service increased by 21.32%, Hejing Taifu Group increased by 17.58%, New Town Development increased by 16.54%, Longguang Group increased by 15.94%, Country Garden increased by 15.87%, New Town Yue Service increased by 14.65%, Zhongjun Group Holdings increased by 14.10% and Agile Group increased by 13.88.

The real estate-related industrial chain has also been boosted, with stocks such as Goodwife, Piano, Zhibang Home and Wrigley Home in the home sector trading daily; The building materials sector also showed positive performance, with Zhengyuan shares and Bunny trading daily, and Oriental Yuhong approaching the daily limit.

Such rare fervor of real estate stocks stems from the latest tone of the the Political Bureau of the Communist Party of China (CPC) Central Committee meeting on real estate.

On July 24th, the Politburo meeting pointed out that it is necessary to effectively prevent and resolve risks in key areas, adapt to the new situation in which the supply and demand relationship in China’s real estate market has undergone major changes, adjust and optimize real estate policies in a timely manner, and make good use of the policy toolbox because of the city’s policy, so as to better meet the rigid and improved housing needs of residents and promote the stable and healthy development of the real estate market. It is necessary to increase the construction and supply of affordable housing, actively promote the transformation of urban villages and the construction of "flat and emergency dual-use" public infrastructure, and revitalize all kinds of idle real estate.

Compared with previous Politburo meetings, this meeting has adjusted the latest situation judgment of the real estate market: the relationship between supply and demand in the real estate market in China has undergone major changes, and it is first proposed to adjust and optimize the real estate policy in a timely manner, and change "supporting" the newly changed demand into "better meeting".

The major change in the industry situation means that the property market has stepped into a flat or even depressed situation from the high state in the past few years. According to the data of Ping An Securities, the property market transaction has been weakening since the second quarter. In June, the sales of commercial housing fell by 18.2% in a single month. In the medium and long term, with the slowdown of urbanization rate, the per capita living area of cities and towns has been greatly improved, and the potential demand is also under pressure.

Ping An Securities said that the domestic real estate market has once again entered a new stage after experiencing "demand exceeds supply" to "structural demand exceeds supply". The meeting pointed out that the real estate policy should be adjusted and optimized in a timely manner, and the demand-side policy optimization such as restricting loans and purchases in short-term key cities is worth looking forward to because the city makes good use of the policy toolbox to better meet the rigid and improved housing needs of residents.

Huatai Securities also said that the "new" real estate situation is aimed at the "old" situation that the market demand exceeds supply for a long time in the past, which led to the continuous rise of house prices, so it is necessary to "live and not speculate". At present, the real estate market has returned to decline after a short period of repair. In the first half of 2023, the sales area and sales amount of commercial housing were -2.8% and +3.7% respectively, and house prices rose first and then fell. In June, the prices of new and second-hand houses in 70 cities were -0.1% and -0.4% respectively.

"It is precious and timely to readjust the real estate industry at the current time." Huatai Securities said that in the past 22 years, a total of 835 relaxation policies have been introduced in various places. Since the first quarter of 2023, the pace of relevant policies has obviously slowed down. After the meeting of the Political Bureau, the policies of key cities are expected to be gradually optimized, such as the relaxation of policies such as restricting purchases, loans and sales, and recognizing housing and loans in core cities.

Yan Yuejin, research director of Yiju Research Institute, believes that the surge in real estate stocks on the 25th fully demonstrates the market’s absorption of the spirit of the Politburo meeting, and also reflects the positive adjustment expected by the market. Some enterprises with debt problems or operating pressures also showed relatively high stock performance, indicating that the impact of the Politburo meeting was comprehensive and universal, and the expectation of continued loose policies in the real estate sector was significantly enhanced, and macroeconomic and real estate expectations continued to improve in the second half of the year.

It is worth noting that the Politburo meeting also mentioned the transformation of villages in cities, which is considered to be an "important part" of the new real estate model.

The industry believes that the transformation of villages in cities is an inevitable choice to repair domestic demand and consumption potential, which will help to build a new model of renting before buying, gradually let new citizens upgrade their housing consumption, and create conditions for the sustainable development of the commercial housing market. The policy not only drives some construction opportunities, but also gives birth to a large number of business opportunities for operational services, which is beneficial to enterprises with comprehensive asset operation capabilities.

Huatai Securities said that it is necessary to pay attention to the detailed rules of each city in the future. Local state-owned assets with resource advantages will give priority to this policy, and they are optimistic about cities with abundant supply flexibility and high-quality housing enterprises with sufficient value and replenishment ability in mainstream cities.

Editor-in-Chief: Qin Hong

Text Editor: Yang Rong

Author: CBN

Source of the title map: upper view of the title map

Photo editor: Yong Kai

Strong convective weather warning! There will be 8 to 10 thunderstorms or hail in parts of Beijing, Tianjin and Hebei.

  Cctv newsAccording to the China Weather Network, the Central Meteorological Observatory issued a blue warning of strong convective weather at 10: 00 on May 12:

  It is estimated that there will be 8-10 thunderstorm gale or hail weather in parts of central and northeastern Hebei, northwestern and southern Beijing, southern Tianjin, central and western Jilin, northwestern Liaoning and northern Shandong from 14: 00 on May 12th to 14: 00 on 13th. There will be short-term heavy rainfall in parts of central Jilin, western Liaoning, north-central Hebei, northwest Beijing, southern Tianjin, northern Shandong, southern Sichuan, southern Yunnan, southeastern Guangxi, southwestern Guangdong and Hainan Island, with an hourly rainfall of 20-40 mm and a local area of more than 50 mm.

  It is estimated that the main influence period of strong convection is from afternoon to night today.

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  Defense guide:

  1. The government and relevant departments shall, in accordance with their duties, prepare for short-term rainstorm prevention, lightning protection and gale prevention, and the meteorological department shall prepare for artificial hail suppression;

  2. Outdoor pedestrians and staff should reduce outdoor activities and pay attention to stay away from structures such as scaffolding billboards;

  3. Drive poultry and livestock into places with roofs, and close doors and windows to reinforce sheds;

  4. The water operations in relevant waters and passing ships shall take active measures such as returning to Hong Kong to avoid or detour navigation, pay attention to covering building materials at the construction site, and properly arrange outdoor items susceptible to heavy rain, wind and hail;

  5. Check the drainage system of cities, farmland and fish ponds, and prepare for drainage and defense against disasters such as mountain torrents, landslides and mudslides.

Shanghai Nanjing Road Tourism

There is a tourist attraction around Shanghai, however, this is Nanjing Road Pedestrian Street. Because my friends can’t go to Shanghai Disneyland, Yuyuan can’t go, and cannot go to the temple, but no one does not go to Shanghai landmark -Oriental Pearl Tower. It is the Oriental Pearl Tower and Bund next to Nanjing Road Pedestrian Street. Watching the Oriental Pearl Nanjing Road generally visited the past.

Nanjing Road Pedestrian Street, the total length of 1033 meters, Shanghai is the first construction of Pedestrian Street, and China is called the first step in the bank street. In the streets, cars are not allowed to pass. Although there are pedestrians in the middle of the street, although there are pedestrians, street layouts and landscape TV series, it is worth visiting in the taste of old Shanghai.

Nanjing Road is a shopping paradise for people. On both sides of Nanjing Road, there are various shopping malls and experience stores, restaurants, and so on. Throughout Nanjing Road, there are more than 1,200 well -known brands. It has nearly 800 light in its international brand. At the same time, more than 90 top brands have opened flagship stores here. It is also called Nanjing Road. High -end consumer venues.

In addition to endless shopping malls, Nanjing Road is also covered with non -ferrous foods. Here is the more famous Shen Dacheng pastry, the real boss fresh meat moon cake. When I just visited Nanjing Road, I ordered a meal, and then ate noodle Harlem Ningbo Road. At that time, rice was just a little bit. The noodle restaurant was basically full. The customer immediately ordered the surface characteristics of the bullfrogs of Harlem. One fried pork chop and a bottle of milk. Bullfrogs are particularly fresh, soup is very rich, and there are more bullfrogs. It can be said that the feet seem to be delicious. It is highly recommended for this noodle shop. Without the use of bullfrogs to face it, Nanjing Road, food has many other characteristics, such as fried Xiao Yang, the delicious price is not expensive.

There is a century square in the middle of Nanjing Road. There is a large music fountain on the square, which reaches 4.5 tons of Eastern Baoding in the northwest. A huge display was built on the square. When I encountered a tourist festival, there would be a colorful show on the square.

Along Nanjing Road, you can directly reach Shanghai Bund. There is an iconic building at the Bund, and Shanghai has a landmark building -Oriental Pearl. I suggest everyone here, you can visit Nanjing Road during the day. In the evening, you can enjoy the bustling night view of Shanghai on the Bund. Because it was turned on and racing all the neon lights of all buildings. Along the Bund, through the Huangpu River Wharf, you can take the Huangpu River trip, and you will have a taste to enjoy the scenery on both sides of the ship.

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