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NetEase CEO Ding Lei Talks about AI Big Model Competition: Finding Application Scenarios and Serving User Needs Are the "Winners"

internet 2023-05-25 22:12:52 Source: NetEase Technology Report Beijing

On May 25th, NetEase released its first quarter financial report for 2023. In the first quarter, NetEase's net income was 25 billion yuan, and the net profit attributable to shareholders under non GAAP was 7

On May 25th, NetEase released its first quarter financial report for 2023. In the first quarter, NetEase's net income was 25 billion yuan, and the net profit attributable to shareholders under non GAAP was 7.6 billion yuan. The company's performance grew steadily, exceeding market expectations. NetEase invested 3.7 billion yuan in Q1 research and development, with a research and development intensity of 15%.

After the financial report was released, executives such as NetEase CEO Ding Lei and CFO Yang Zhaoxuan attended the financial report conference call to interpret the first quarter's performance and the layout of games, music, AIGC, and overseas markets.

The primary task of developing AI big models is to identify application scenarios and meet user experience requirements

When investors asked about NetEase's research and development investment and layout logic in the field of AI big models, NetEase CEO Ding Lei said that in the future, with the development of AI big models, companies will gradually find optimization paths and continuously reduce the funds and computing power required for big model research and development. Meanwhile, Ding Lei believes that in the AI big model competition, the true winner is the enterprise that can choose a good application scenario. So, currently NetEase's primary task is to explore the application of AI big models in different product scenarios and develop high-quality products that are more in line with user experience.

In response to the competitive landscape in the gaming market, NetEase CEO Ding Lei stated that many new games have emerged in the market this year, but consumers will only choose high-quality works. For NetEase, one of the most important things is to always maintain unique innovation in its products, whether it is innovative gameplay or the application of new technologies, to continuously meet the needs of users. We are confident that we will always maintain our unique advantages in our future development.

Egg Party: Adding Million UGC Maps Every Week to Accelerate Sail Away

In the first quarter of this year, "Egg Party", developed based on NetEase's self-developed engine, created a unique UGC content co creation model. More than 30 million daily active players can use the UGC map editing tool of "Egg Party" to create game content and conduct secondary breaking dissemination through social media. At present, "Egg Party" has added an average of over one million UGC maps per week, and the creative enthusiasm of players has helped "Egg Party" reach the top of the Chinese iOS download list in the first quarter, further consolidating the high stickiness and strong social content ecological barrier of "Egg Party".

After achieving success in China, "Egg Party" will target the international market and accelerate its pace of going abroad. NetEase executives stated on the financial report conference call that "Egg Party" has been put into trial operation in Southeast Asia and other regions, collecting feedback from local players' experiences. Next, NetEase will continue to enhance the unique UGC gameplay experience of "Egg Party", allowing more overseas players to experience the charm of domestically developed games.

Regarding inquiries regarding the overseas market layout, NetEase executives disclosed on the financial report conference call that NetEase currently has more than 10 studios overseas. NetEase can work with these experienced overseas teams to share successful creative experiences and achieve a win-win situation. At the same time, the company is confident that in the future, overseas studios can release highly anticipated works while serving the Chinese and overseas markets well.

NetEase Cloud Music's gross profit margin has reached a new high, and paid users continue to grow, with over 630000 independent musicians

In the first quarter, NetEase Cloud Music's performance developed healthily, with its gross profit margin significantly increasing from 12.2% in the same period last year to 22.4%, setting a new high. NetEase executives stated on the financial report conference call that the monthly active users (MAU) of online music have steadily increased, and the membership payment rate of Q1 online music is around 20%, with a continuous increase in the number of paying users.

It is worth noting that NetEase Cloud Music Q1 continues to focus on the online music track, upgrading product experience around core music services, and promoting sustainable and healthy business development. Some adjustments have had an impact on social entertainment services, such as reducing the display of live streaming on cloud music apps and adjusting the revenue sharing between anchors and guilds.

In the first quarter, NetEase Cloud Music increased its support for domestic original music. As of the end of March this year, the registered independent musicians on the platform had exceeded 630000, continuously leading the industry. Recently, NetEase Cloud Music has launched music support programs such as "New Voice Power" and "Cloud Ladder Plan 2023" to explore and cultivate Chinese language music talents through professional courses and traffic recommendations.

Tag: NetEase CEO Ding Lei Talks about AI Big Model


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