NetEase Cloud Music announced its new “Music Talent” initiative on 17 December 2020 to leverage its competitive edge as a community to connect, inspire and engage quality content creators to cater to the country’s booming music industry.
Music Talent is a new concept incubated and developed by NetEase Cloud Music. With this new initiative, NetEase Cloud Music aims to support and grow the Music Talents on the platform who create derivative music content, such as music videos, radio podcasts, playlists, and other forms of mediums to broadcast and distribute music.
The initiative aims to help more everyday artists to earn an annual income of over RMB 1 million or more, and facilitate the development of music multi-channel network (MCN) companies.
This initiative also demonstrates NetEase Cloud Music’s ongoing emphasis on content creation, especially the exploration of diverse forms of high-quality and high-value content generation.
Since 2016, NetEase Cloud Music has focused deeply on supporting the development of original music and fostering creativity. The platform is home to over 200,000 Chinese independent musicians as of October 2020, a 100% year-over-year growth.
As part of the initiative, NetEase Cloud Music will provide platform-certified talent with a wide range of support, such as traffic referrals and revenue incentives, among others.
Support may also include helping talent diversify their income sources through incentives and business cooperation, and providing professional guidance on content creation.
NetEase Cloud Music has also harnessed the unique advantages of its community to attract a large number of young users, with over 90% of its users being under 29 years old.
These users are keen to create and share high-quality music in a variety of forms and have a willingness to pay for such content.
Additionally, with an established user-generated content (UGC) ecosystem, NetEase Cloud Music is committed to providing its Music Talent and independent musicians with all-around support and ideal growing conditions.
Netease revenues up 27.5% in Q3 2020
Netease net revenues were RMB18.7 billion (US$2.7 billion) in Q3 2020, an increase of 27.5% compared with the third quarter of 2019.
Netease introduced new titles to the Chinese market including Onmyoji: Yokai Koya, PES Club Manager, King of Hunters and For All Time, and EVE Echoes and MARVEL Duel to overseas markets.
It extended the popularity of a number of mobile titles that climbed China’s iOS top grossing chart in the past months including Invincible, Onmyoji and Sky.
Netease maintained steady performances of flagship PC titles such as Fantasy Westward Journey Online, New Westward Journey Online II and Justice. And, it strengthened NetEase Game’s international presence with strong performances from Knives Out, Life-After and Identity V in Japan.
Further developed a robust pipeline with titles including Unknown Future, Akasha Book, Revelation mobile game, Infinite Lagrange, Harry Potter: Magic Awakened, The Lord of the Rings: Rise to War, Nightmare Breaker, Ghost World Chronicle, Diablo® Immortal™ and Pokémon Quest.
Several of these titles, including Revelation mobile game, will be released before Chinese New Year.
Netease Financial Results
Net revenues were RMB18.7 billion (US$2.7 billion), an increase of 27.5% compared with the third quarter of 2019.
- Online game services net revenues were RMB13.9 billion (US$2.0 billion), an increase of 20.2% compared with the third quarter of 2019.
- Youdao net revenues were RMB896.0 million (US$132.0 million), an increase of 159.0% compared with Q3 2019.
- Innovative businesses and others’ revenues were RMB3.9 billion (US$574.4 million), an increase of 41.6% compared with Q3 2019.
Gross profit was RMB9.9 billion (US$1.5 billion), an increase of 25.6% compared with the third quarter of 2019.
Total operating expenses were RMB7.0 billion (US$1.0 billion), an increase of 54.7% compared with the third quarter of 2019.
Net income from continuing operations was RMB3.0 billion (US$441.6 million), which includes net exchange losses of RMB1.6 billion (US$231.4 million). Non-GAAP net income from continuing operations attributable to the company’s shareholders was RMB3.7 billion (US$540.4 million).
Basic net income from continuing operations was US$0.65 per ADS (US$0.13 per share). Non-GAAP basic net income from continuing operations was US$0.80 per ADS (US$0.16 per share).
The board of directors has approved a dividend of US$0.1950 per ADS (US$0.0390 per share) for the third quarter of 2020
Check out Tencent’s performance here.