NetEase holds a Q1 2023 performance conference call with over 630000 original musicians from NetEase Cloud Music

On the evening of May 25th, NetEase Group held a conference call on its performance for the first quarter of 2023. The conference call revealed that the number of subscriptions to NetEase Cloud Music Q1 members has steadily increased, and the payment rate has remained stable at 20%; The number of registered musicians on the platform exceeded 630000 in the first quarter, and the copyright content is becoming increasingly rich and the original ecosystem continues to prosper

On the evening of May 25th, NetEase Group held a conference call on its performance for the first quarter of 2023. The conference call revealed that the number of subscriptions to NetEase Cloud Music Q1 members has steadily increased, and the payment rate has remained stable at 20%; The number of registered musicians on the platform exceeded 630000 in the first quarter, and the copyright content is becoming increasingly rich and the original ecosystem continues to prosper. According to the financial report of NetEase, in the first quarter, NetEase Cloud Music continued to develop healthily, and achieved Q1 revenue of 2 billion yuan and gross profit margin of 22.4%, up from 12.2% in the same period last year, by constantly innovating the business cooperation model, including cooperation with China Mobile's video RBT, upgrading the experience of Dolby Atmos zone, and covering more IoT terminals.

In the first quarter, NetEase Cloud Music deepened its content ecology and product innovation, continuously deepening user engagement in the music community, and significantly improving its gross profit margin. The conference call pointed out that NetEase Cloud Music will continuously optimize the copyright cost structure and improve its revenue sharing strategy. Drive sustainable and healthy online music business growth by continuously optimizing user experience.

The copyright content of NetEase Cloud Music is becoming increasingly rich, and the attractiveness of the content is gradually increasing.Since 2023, NetEase Cloud Music has successively reached cooperation with copyright owners and well-known artists such as Xinxin Music, Rolling Stone Records, Elephant Music, Yudingshi, Wu Qingfeng, Dreamus Company, SLL, etc. The copyright of top music has become increasingly rich. At the same time, NetEase Cloud Music continued to expand the sound consumption scene, continued to produce and introduce high-quality audio content to provide users with more high-quality consumption content, and produced the radio drama "Death kaleidoscope", which became the first radio drama with an infinite stream of more than 100 million broadcast volume.

In terms of community construction, NetEase Cloud Music continues to optimize the product experience, enhance user engagement, and showcase a highly cohesive community interactive atmosphere.In the first quarter, the first mass-oriented music business testing system was launched to help users comprehensively understand their perception, control, and appreciation in the music field, triggering widespread participation and interaction among cloud village users. At the end of March, a brand new upgrade was made to the classic vinyl player style that has been in use for ten years, with multiple player styles including Time Mode, Youth Color Glue, and Retro Music Player. Among them, "Time Mode" highlights the warm community atmosphere of Yuncun.

Continuously increasing support for original music, and continuously enhancing the influence of content.

Recently, NetEase Cloud Music has further upgraded its copyright authorization service platform "Yuncun Exchange", bringing exposure from dozens of channels and considerable copyright revenue to content partners and musicians.In the first quarter, the Cloud Village Exchange reached copyright cooperation with Kwai, Tear Song, Tmall Genie, Bailing KTV, Bubble Notes, Pipi Voice, Hunan Satellite TV, Jiangsu Satellite TV, Hellens Tavern, HIFIVE, Vfine, etc., bringing more copyright benefits to the content parties and helping the original music to become popular. Take Kwai as an example. Over the past six months, more than 1400 new songs produced by self-made studios have received traffic promotion support in Kwai. In addition, the Yuncun Exchange continues to expand overseas distribution, helping Chinese original music go global. Since the beginning of this year, the cumulative playback volume of overseas channels has increased by 251% compared to the same period last year.

As a leading global music community, NetEase Cloud Music has built a unique user appeal through its differentiated and highly engaged community ecosystem. The Q1 2023 performance shows that NetEase Cloud Music continues to maintain healthy growth and profitability continues to improve. At the same time, NetEase Cloud Music continues to invest in a series of systematic support plans, empowering musicians from all aspects of creation, dissemination, and revenue, helping to improve the development environment of Chinese original music, helping more excellent original music to become popular, and jointly building a prosperous digital culture in China.