For many years, E’s advantage in copyright has not found a good channel for monetization. Kuaishou needs copyright to circumvent legality issues. In addition, a large number of celebrities can also improve the platform’s tone. An alliance around copyright is good for both parties.
NetEase Cloud Music merges with Douyin, and it serves the creation completely. NetEase Cloud Music does not have the head copyright advantage, but it holds a lot of short video music copyrights, and as a show, Douyin needs more gameplay. The combination of the two is expected.
4 Conclusion
Online music is an important part of the Tencent Group’s content ecology. The characteristics of emphasizing copyright and neglecting gameplay are important reasons for the high cost of TME online music business.
Since it is a content player, it is reasonable to pay attention to content investment. Like other content players, Tencent Music has the problem of fewer monetization methods and difficulty in taking into account the experience. The biggest difference from iQiyi and Huayi Brothers is that Tencent Music has a strong backing. Several years of capital operation has left the copyright market without opposition.
There is nothing wrong with Tencent Music’s continued extension to the music production side. The industry chain that spends a lot of money and energy is more in cooperation with Tencent’s other content ecosystems, such as the integration of games and music, and the effect is very good.
The problem lies in the low paid penetration rate and low user stickiness, especially the lack of insight into the usage habits of young users. These details will make Tencent Music’s Spotify dream difficult to come true.
How to let users listen to music is a problem, and how to let users pay while playing is also a problem.
Reference material:
1.21 Century Business Herald: Tencent Music’s Q4 revenue of 7.29 billion yuan in 2019, online music paying users increased by 47.8% year-on-year, 2020.
2. A few degrees in depth: TME, Netflix, Spotify’s common “epidemic” question, 2020.
3. Zhoutian Finance: The music listening market has peaked, will “playing music” be the future of the music market? 2020.
4. Music Finance: From “believe in the future” to “future stage”, Tencent Music will feed back the industry with “content increment”, 2020.
5. Tencent Music Entertainment Group’s financial reports over the years.