Monday, August 17, 2020

NetEase Cloud Music saw ‘triple-digit revenue growth’ in Q2 | Music Ally

Chinese technology firm NetEase published its latest financial results last week, with no new figures for its NetEase Cloud Music streaming service. However, the service was mentioned in the subsequent earnings call with analysts.

“For NetEase Cloud Music, we continued to see triple-digit revenue growth in the second quarter year over year, with both membership and live streaming striking new highs,” said chief financial officer Charles Yang.

That revenue total wasn’t quantified, but NetEase Cloud Music sits within NetEase’s ‘innovative businesses and others’ category in its financials, which saw revenues grow by 39% year-on-year to RMB 3.7bn ($533.4m) last quarter.

Yang also reminded analysts of NetEase Cloud Music’s recent licensing deal with Universal Music, saying that “beyond music content subscription revenues… we are now in a direct partnership to possibly explore other formats of monetisation with a record label provider”.

He also flagged up the launch last quarter of NetEase’s karaoke app Yinjie, into a category that has been lucrative for rival Tencent.

Stuart Dredge


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