Today, Tencent Music released its third-quarter financial report, which is the first financial report of released by the company after antitrust canceled the exclusive copyright of music. Its overall revenue situation naturally attracted much attention. Although the total revenue has increased slightly, 's net profit and number of users are facing a decline in . How will Tencent Music deal with it? utilizing Tencent's ecological advantages and entering the overseas market and other series of measures have been introduced one after another...
Total revenue has increased , User number net profit is facing a decline
On November 9, Tencent Music released its Q3 quarterly financial report. This is the first financial report released by Tencent Music after the State Administration for Market Regulation requested the cancellation of exclusive copyrights for music in July this year.
report shows: In this quarter, Tencent Music 's total revenue reached RMB 7.81 billion , with increasing by 3% year-on-year; the company's net profit was RMB 1.06 billion under non-international financial reporting standards; its online music paid users reached 71.2 million , 's year-on-year increase of 37.7% , with a payment rate of 11.2%; 's online music subscription revenue reached 1.9 billion , and 's year-on-year increase of 30.2% . However, for Tencent Music, which had previously held exclusive copyrights, after anti-monopoly, its number of users, ARPPU value, and net profit still faced a decline in .
such as 's net profit was 740 million yuan, a year-on-year decrease of 35% ; 's mobile monthly active users were 636 million, a year-on-year decrease of 1.5% ; ARPPU (monthly income per paid user online) was 8.9 yuan, a year-on-year decrease of 5.3%.
financial report shows that the decline in net profit mainly lies in the decline in national karaoke revenue. It is reported that Tencent Music social entertainment business, which belongs to Quanmin K-Song, is Tencent Music's main source of revenue . This quarter, social entertainment accounts for 63% of Tencent Music's total revenue .
Under the competition of short video platforms such as Douyin, the revenue of this sector decreased by 330 million yuan compared with the same period last year, a year-on-year decrease of 6.4% . entertainment active users and paid users both year-on-year and month-on-month decreased , of which 10 million paid users, a year-on-year decrease of 4.8%.
In addition, according to the financial report, in this quarter, while Tencent increased its management expenses in , it also cut marketing and consumption expenses in . Administrative expenses increased by 33% year-on-year; consumption and marketing expenses decreased by 5.6% year-on-year.
In this regard, Tencent Music CFO Hu Min explained: Management fees are to increase the cost of R&D personnel for products and technologies, and to continuously control consumption and marketing expenditures, in the hope of reducing customer acquisition costs and allowing internal effective user traffic to attract more users. After the exclusive copyright of
is cancelled, how to retain and attract more users has become a problem that Tencent Music needs to face.
reporter learned that Tencent Music is constantly innovating and polishing in many aspects such as original musician , as well as user experience , and in addition, it is also constantly opening up new markets .
promotes original music content , cultivates original musicians
first of all, it is to explore, cultivate and promote original musicians.
In October this year, Tencent Music once again launched the "New Appreciation" special project "Light of the First Time Season 2", claiming that it is the music content self-made project for the new generation of idols, in order to cultivate original content.
In addition, in September this year, Tencent Music launched "Billion-yuan Incentive Plan 4.0" . Musicians can participate in the production of their own songs on the platform. All songs under this mode in , and all income within 12 months of the date of signing the contract belongs to the musicians' .
In addition, the platform has also launched original works "Play Volume Incentive Package" to help promote original content. At the same time, due to the advantages of Tencent's ecological advantages, Tencent Music has launched a one-click video release function. The music videos of original musicians can be published and distributed on on WeChat video accounts, QQ music, Kugou Music, Kuwo Music and National K songs at the same time. The communication channels are wide, which helps musicians break the circle quickly.
According to the financial report, as of the end of this quarter, the number of independent musicians registered by Tencent Music reached 260,000 , exceeding the 230,000 disclosed by NetEase Cloud Music at the beginning of the year.
Tencent Music is developing in original musicians, while NetEase Cloud Music, which has the advantage here, began to make efforts in copyright after canceling its exclusive copyright.
On October 4, , as the largest new music independent record company in China, returned to NetEase Cloud , with its musicians including New Pants. Today, NetEase Cloud Music has obtained full music copyright license under Emperor Group, including works by artists such as Nicholas Tse, Joey Yung, Lee Keqin, and Twins.
In the future, in the creation of original musicians and the grasp of copyright of top musicians, it is worth looking forward to who will obtain more attractive content in these two major content sections, Tencent Music and its biggest competitor NetEase Cloud.
Optimize user experience , makes full use of Tencent ecosystem
In addition to carrying out a series of innovations and polishing on the content, we hope to retain users with high-quality content and high-quality original singers to keep users and let users pay. In terms of user experience, Tencent Music has also made many new moves.
The most worth mentioning is that and Tencent ecosystem, namely Tencent Video, Tencent Games and WeChat, . In this regard, as mentioned above, it will not only help to promote the large-scale promotion of original singers' works, but also give users a more novel experience, which will also help to broaden the space for commercialization of music.
In September this year, Kuaishou cooperated with WeChat to launch the "Singing to WeChat status" function. In addition, the same is true for QQ Music, which can be shared to WeChat updates. combines music with social interaction.
At the same time, in order to cope with the competition of short video platforms, Tencent Music continues to promote the immersive short video section of QQ music, and Kugou vertical screen MV polishing . Currently, the number of daily video views and daily independent visits of QQ Music has reached 100 million and 18 million respectively.
Tencent Music entered overseas , also needs to create the meta universe
In addition to the cliché, how to optimize the user experience, grasp the copyright of high-quality music and promote high-quality original content. Tencent Music also moved into long audio field .
In January this year, it acquired Lazy Tingshu, which cost 2.7 billion yuan. In April, it was announced that it would merge its Kuwo Changting and Lazy Tingshu to upgrade it to "Lazy Tings".
For the popular concept "meta universe", Tencent Music will also create the meta-universe live broadcast concept by launching a virtual live broadcast room in National Live . It also launched the immersive music and entertainment game "QQ Music Starlight Town", which will experience virtual concerts in the virtual world , new song press conferences, music festivals and other music and entertainment programs.
At the same time, Tencent Music also set its sights on overseas markets. Just today, Tencent Music announced that it would reach a music licensing agreement with Apple Music , which will publish and promote authorized music works globally through TME Music Cloud.
However, although long audio is currently Tencent Music’s fastest growing business , with monthly active users exceeding 140 million in the third quarter, an increase of 89% year-on-year. However, 's gross profit in this quarter is still negative .
It is reported that is also expected to continue to negative in the next few months, and it is also facing competition from Himalaya, Dragonfly FM, etc. As for the creation of the metaverse and the development of overseas markets, the effectiveness still needs to be observed in the long run.
At present, overall, Tencent Music is still actively expanding its territory and constantly innovating to give musicians and users a better experience.
But at the same time, due to the passing of the exclusive copyright advantage of , how can user traffic continue to maintain or even increase ? How to resist the attractiveness of short video platforms such as Douyin to musicians in promoting the popularity of songs and ? As well as the pop-up ads and open-screen advertisements, the impact on its commercial revenues such as advertising and digital albums after the intensification of fan cultural supervision, is still the problems that Tencent Music needs it to deal with.
Aoyi News Reporter Liu Jie
