在线音乐行业：音乐不止，不止于音乐

Investment Rating - The report gives an "Overweight" rating for the online music industry, with "Buy" ratings for Spotify (SPOT.US), Tencent Music (TME.US/1698.HK), and NetEase Cloud Music (9899.HK) [1][14][23]. Core Insights - The global online music industry is experiencing rapid growth, becoming a significant driver in the music market. The stable competitive landscape and increasing bargaining power of platforms provide profit enhancement opportunities for music streaming [11][12]. - The music streaming market grew by 10% year-on-year in 2023, with the Chinese online music market growing at an impressive rate of 33% [11][43]. - Music streaming now accounts for 67% of the overall recorded music industry revenue, highlighting its importance as a growth driver [11][35]. Summary by Sections Online Music Industry Overview - The online music industry has transitioned from physical sales to streaming, with streaming revenue reaching $19.3 billion in 2023, representing 67% of the total recorded music industry revenue [11][35]. - The Chinese online music market is the fifth largest globally, driven by increasing willingness to pay, improved copyright environments, and technological innovations [43]. Competitive Landscape - The competitive landscape is relatively stable, with major players like Spotify, YouTube, Apple, and Amazon holding over 85% of the market outside China. Tencent Music and NetEase Cloud Music dominate the Chinese market with over 90% market share [12][49]. - The high content copyright costs create a barrier to entry, ensuring a stable competitive environment in the future [12][49]. Future Growth Drivers - Key growth drivers include: 1. Increased penetration rates, with global music subscription penetration at only 12.5%, compared to over 50% in mature markets, indicating significant long-term growth potential [13][18]. 2. Subscription price increases, as music streaming platforms steadily raise prices, maintaining high user retention due to the cost-effectiveness of music as an entertainment option [13][18]. 3. Content expansion into new formats such as podcasts, audiobooks, and live streaming, which will contribute to new revenue streams [13][18]. Company-Specific Insights - **Spotify (SPOT.US)**: The global leader in music streaming with a market share of approximately 30%. The company is expanding into emerging markets and diversifying content offerings, receiving a "Buy" rating with a target price of$ 555 [20][23]. - Tencent Music (TME.US/1698.HK): The largest online music platform in China, benefiting from a rich content library and integration with Tencent's ecosystem. It has a target price of $14.5 [21][23]. - NetEase Cloud Music (9899.HK): Focused on young users and independent musicians, with a target price of 145 HKD. The company has significant growth potential as it matures its commercialization strategy [21][23].