Core Insights - The competitive landscape of online music has shifted from simple copyright acquisition to a comprehensive competition involving operational capabilities and AI productivity [1][3] - In 2025, NetEase Cloud Music's total revenue was 7.76 billion yuan, a slight decrease of 2.4% year-on-year, with a notable shift in business structure [4][7] Business Structure - NetEase Cloud Music's revenue is divided into two main categories: online music services and social entertainment services, with online music revenue previously accounting for 89.4% in 2018 [5] - By 2025, online music services generated 5.99 billion yuan, while social entertainment services contributed 1.77 billion yuan, indicating a return to 2019 revenue proportions [7] Regulatory Impact - Two key regulatory events have influenced the online music market: the prohibition of exclusive copyrights and tightened regulations on live streaming rewards, which have reshaped the growth potential of social entertainment services [6] - These regulations have allowed NetEase Cloud Music to improve its copyright content depth, aligning more closely with Tencent Music, while also capping the growth of social entertainment revenue [6][8] Competitive Dynamics - ByteDance's Soda Music is rapidly reshaping the market, with monthly active users increasing from 120 million to nearly 140 million, positioning it as the fourth-largest player [11] - Soda Music employs a low-decision threshold model, attracting users with its algorithm-driven music discovery, contrasting with traditional music apps [12][13] User Engagement and Revenue - NetEase Cloud Music's subscription revenue grew by 13.3% to 5.053 billion yuan in 2025, driven by an increase in subscriber numbers, but offset by a decrease in average revenue per paying user (ARPPU) [10] - In contrast, Tencent Music experienced a 17.2% increase in subscription revenue, with ARPPU rising by 10.2%, indicating a more favorable revenue environment [10] Strategic Responses - NetEase Cloud Music is focusing on enhancing its community features, including product upgrades and AI-driven recommendations, to maintain user engagement and listening time [19][20] - The company is leveraging AI to strengthen its competitive edge, introducing models that capture user preferences and enhance music creation tools [20] Emotional Connection vs. Algorithmic Efficiency - The reliance on algorithms raises concerns about the potential dilution of emotional connections within the music community, as evidenced by user dissatisfaction with the accuracy of annual listening reports [21] - NetEase Cloud Music faces a strategic choice between becoming a more efficient recommendation engine or preserving its community's emotional warmth, which has historically differentiated it from competitors [22]
网易云音乐，卡在算法和“活人感”之间