NetEase cloud music is so dead

Music Tencent NetEase US dollars

lanjingTMTwang· 2017-10-19 10:23:44

" if Ali and Tencent recently reached a mutual copyright granted things, then draw the NetEase cloud music tide comes, this is very irresponsible conclusion. But that copyright event not only made NetEase cloud music embarrassing, but also reflected the dilemma of Chinese music copyright management. NetEase cloud music from the beginning of the birth of a challenge is streaming music to the unknown, even if the music copyright management organization China went to the front of the stage, by the NetEase cloud music is still the throat for labels. Between

Music and Spotify

Apple China version of the Tencent and the NetEase against the cloud music is between Apple Music and Spotify China version of the competition, but some difference is that the monopoly of the Tencent Chinese music market 90% copyright NetEase to obtain cloud music songs from the Tencent use right there. Now it has exchanged millions of libraries with ALI, forcing NetEase cloud music to the corner.

but if you think Tencent has a bigger bargaining chip with the record company, then you make a mistake. Because the record company have all music rights, it is more valuable than cash bargaining power, and why they can easily refuse Apple tried to charge $4.99 claims, and then through the streaming media service providers who reap the benefits of competition and.

's huge Tencent is now competing with competitors through price wars. In the copyright war of Universal Music in May this year, BAT and NetEase launched a fierce battle. Even if Ding Lei flew to Losangeles Universal Music headquarters, but that is not what egg. Tencent Music Entertainment Group (TME) still won the final victory, they issued a $350 million cash plus $100 million stake, which makes the world can not refuse.

so Spotify is the biggest streaming media service provider in the world, is it profitable? Of course not, and it's hard to make a profit. The company lost 539 million euros ($610 million) last year, the most serious deficit in the history of the fiscal year. Not only that, in order to obtain the Spotify the world's largest record company, Universal Music Group and independent record association Merlin network organization music licensing, has promised in the next two years at least 2 billion euros paid royalties. Oh!

NetEase cloud music, of course, is not profitable, and it continues to burn investors' money like Spotify. In April this year, NetEase cloud music announced a 750 million yuan financing, the valuation reached 8 billion yuan. But this money is not enough to buy copyright, especially Ali and Tencent are still driving prices there. Now, Spotify will pay 69% of its annual revenue to pay for music royalties. In China, the proportion of streaming service providers may look high. So NetEase

cloud music the final outcome will be the record companies' press in the joint strangling the Tencent, Ali and record companies who will be under the NetEase cloud music into a corner, until it burned investors money, users no longer hear you want to hear the song. that time Tencent and Ali again and record companies who negotiate with record companies who take off a new wave of.

terrorist but myopic Tencent Music Entertainment Group

Tencent's horror is that, in many ways, countries should be wary of its monopoly. But in July last year, the Tencent Music Entertainment Group (TME) was established and did not encounter antitrust investigation, the merger did not appear so far Oh in the Anti-monopoly Bureau of the Ministry of Commerce announced the approval of the centralized case conditions without operator list, the establishment of TME made it become the online music market.

is the "anti-monopoly law" has been hanging over the head of the Tencent, a Damour Damocles before, but in March 28, 2013, the Guangdong Higher People's Court of first instance during the Qihoo v. Tencent in 2010 the "3Q war" alleged abuse of dominance case in favor of Tencent, Tencent that does not have a dominant position in the market for instant messaging. So the hanging sword was removed from the top of the Tencent.

in May this year, Tencent and universal music reached a strategic cooperation agreement on digital copyright distribution in mainland China, and the lack of law enforcement of the anti-monopoly law is a big background.

all right, now let's see how myopic TME is. The Tencent refused to NetEase cloud music authorized songs used for the sake of their own smooth IPO. In April 11th this year, NetEase cloud music just announced the completion of financing 750 million yuan, the valuation of 8 billion yuan news, half a month later was burst TME to go to Hong Kong IPO.

of course, this anxiety can also be understood. On the one hand, NetEase cloud music volume and terror growth trend, the platform of those users on the NetEase cloud music strong protection and high-frequency Amway, enough to make any competition shame and jealousy. On the other hand, the first listed company in the industry is most favored by investors, which can be seen from the failure of Iqiyi's repeated attacks on nasdaq.

but even so, the voice of those record companies might be on the Tencent. Because Apple Corp has the most cash reserves in all companies, it still fails to dominate the content of the negotiations with the record companies. They not only refused to charge Apple $4.99 claims, also described the move as ruthless Apple Corp.

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