Netease executives interpret financial statements: Netease cloud music revenue achieves three digit growth

category:Internet
 Netease executives interpret financial statements: Netease cloud music revenue achieves three digit growth


After the release of the financial report, Ding Lei, CEO of Netease, Yang Zhaojie, CFO and other company executives attended the financial report meeting, interpreted the key points of the financial report, and replied to the questions of Netease cloud music copyright, commercialization path, and the development of Netease game overseas that analysts generally focused on.

Netease cloud music achieved three digit revenue growth and diversified business model

According to the financial report, in the first quarter, the revenue of innovation and other business segments reached 3 billion yuan, an increase of 28% year on year. Among them, Netease cloud music has an obvious pulling effect. Yang Zhaoxiang disclosed in the conference call that Netease cloud music achieved a three digit year-on-year revenue growth in the first quarter, with the number of paid members and member revenue growing continuously, and the live broadcast revenue also growing rapidly.

When talking about the commercialization of Netease cloud music, Ding Lei believes that live broadcast is the means to realize Netease cloud music, but it is not the only means. I believe that the realization of Netease cloud music will never be restricted by paid members, digital albums, live broadcast and other modes. Netease will create a different business model.

According to Ding Lei, we need to return to the essence of products when we look at the competition pattern. Chinas market is very large, and Netease cloud music should first do a good job of Chinese original music.. Netease cloud concert insists on serving independent musicians in China and music lovers in China. In the short term, Netease cloud music will focus on serving musicians and improving products for music lovers.

In the past three months, Netease cloud music has taken frequent actions in copyright procurement, winning four heavyweight copyright cooperation successively, including Studio Ghibli, rolling stone records, Warner Copyright (WCM) and Shaocheng era. In addition, Netease cloud music has also pocketed the copyrights of a number of domestic popular variety music works, such as the year of singers when they play, our band, Hi sing and turn up, the third season of sound is near its boundary .

In response to the copyright issues concerned by analysts, Ding Lei also said at the conference: we respect the intellectual property rights of music very much, and are willing to cooperate and purchase with any copyright party to help them distribute and sell music works in the Chinese market.

Overseas game revenue accounts for 10%, and new works will continue to be released in the second half of the year

As an important business segment of NetEase, online games have made outstanding achievements in this quarter. According to the financial report, in the first quarter, the net income of online game service was 13.52 billion yuan, an increase of 14.1% year on year, and the revenue of more than 10 billion yuan was maintained for the eighth consecutive quarter.

At the same time, the influence of Netease game in the overseas market is constantly improving, and it has made outstanding achievements in Japan and other overseas markets. Netease ranked second in appannies latest list of the top 52 global publishers. In response to analysts questions, Yang Zhaoxiang revealed that in the first quarter, overseas revenue accounted for slightly more than 10% of the online game segments revenue. We are very confident that we will continue to achieve growth in the overseas market in the next three to five years. As the new crown epidemic continues to spread around the world, analysts are generally concerned about the development of Netease games overseas. In this regard, Ding Lei said that Neteases positioning is based on China and the world. In addition to building products for Chinese users, Netease is also gradually considering overseas markets. In the middle and second half of this year, Netease games will continue to distribute works in overseas markets. Source: NetEase science and technology report editor: Wang Fengzhi_ NT2541

At the same time, the influence of Netease game in the overseas market is constantly improving, and it has made outstanding achievements in Japan and other overseas markets. Netease ranked second in appannies latest list of the top 52 global publishers.

In response to analysts questions, Yang Zhaoxiang revealed that in the first quarter, overseas revenue accounted for slightly more than 10% of the online game segments revenue. We are very confident that we will continue to achieve growth in the overseas market in the next three to five years.

As the new crown epidemic continues to spread around the world, analysts are generally concerned about the development of Netease games overseas. In this regard, Ding Lei said that Neteases positioning is based on China and the world. In addition to building products for Chinese users, Netease is also gradually considering overseas markets. In the middle and second half of this year, Netease games will continue to distribute works in overseas markets.