Can online music “run money into” Internet innovation avoid the “money pit”?
The battle for music copyrights is back in flames.Following Alibaba ‘s announcement to win Taihe Music and NetEase ‘s announcement of signing a contract with Studio Ghibli, on March 17, Tencent Music Entertainment Group announced that the company ‘s music library covers more than 90% of the copyright of film and television OST in 2019OST copyright of the head variety show.Ding Lei, the No. 2 player in the market, is ambitious and has once again bombarded the music copyright market.On February 27, Ding Lei said in an analyst conference call, “Chinese music operators in the past few years, and other NetEase, including Huawei, Xiaomi, OPPO, vivo and other companies that need to purchase music copyrights have paid more than a reasonable price 2 toThe cost of more than 3 times is unfair and unreasonable. We hope to return to a reasonable and reasonable copyright fee in the future.”Internet NetEase’s fourth quarter 2019 performance report said that NetEase cloud music revenue has grown strongly, but the online music business that replaces innovative businesses and other sectors has re-expressed specific financial data, and only released an independent musician group of more than 10 people., And more than 270 billion music plays.Ding Lei did not say whether he was complaining about, or estimate, suppress all.Most people from ethnic minority industries told the sauna and Yeewang that since the online legalization of Chinese music began around 2013, the investment layout of Tencent and Alibaba made Warner, Universal and Sony’s three major music giants with massive copyrights aware of the “money”” Jing, the number on the copyright licensing contract has increased year by year.Currently, Tencent holds the four major online music applications in China, and its music business went to the United States for independent listing.Alibaba turned into the gold behind the scenes, using capital to contain Tencent.In September 2019, Alibaba invested $ 700 million in NetEase Cloud Music. Baidu also participated in NetEase Cloud Music’s financing plan.In addition to copyright disputes, online music innovation disputes are also intensifying.On January 10, 2020, the innovative business “Sing Duck” Weibo of Alibaba’s big entertainment incubation issued a document accusing the K song application “Sing Bar”, which was established in 2012, to achieve functional plagiarism.Singer Music Group founder and CEO Chen Hua responded in an interview, “We don’t want to argue too much”. No one invented singing, it already exists in this world, just like K song originally exists inThe same in this world.The dark battle of online music is intensifying.Can Ding Lei Tucao copyright NetEase become a spoiler?The relationship between copyright and users is often referred to as the “chicken hen egg, egg hen chicken” problem.NetEase adjusted and watched as Tencent Music reached a cooperation with Universal, Warner and Sony, and a group of Chinese-language record companies, the color of its own music library became “grey”, replaced, Tencent merged Kugou Music, QQ Music, and the whole peopleThe active users of K Song and Ku Wo Music Day are firmly locked at more than 20 million.The latest data shows that Tencent’s online music subscribers are 39.9 million, an annual increase of 47.8%.This is not the first time Ding Lei is suspected of copyright infringement.Many people in specific industries told Sauna and Yeewang that music copyright license agreements usually re-enter once every two to three years. This is a target market. The declining record companies are gradually increasing their earnings and valuing, thus deciding the ownership of a new round of licensing.”At this point, Tencent is not safe,” said one of the senior executives of the music and culture company.Ding Lei said that the expectation of NetEase Cloud Music is to become a gathering platform for all fans who like music, and to promote the production of original Chinese music, and to explore and develop independent musicians.Therefore, Netease Cloud Music will only be able to spend funds in these directions only if the cost of copyright fees declines. Otherwise, billions of annual copyright expenditures will soon burn out several of its own financing.However, HiFive.Zhang Zhaoyi, chief strategy officer of AI, told Sauna, Yewang, “NetEase is not looking for a price cut, but a price cut.”Zhao Zhaoyi explained that once the copyright fees are greatly reduced, companies that are trapped by funds and copyrights can enter, and byte-beating players will also flood into this market, and NetEase will further lose its competitiveness.In essence, NetEase is not really afraid to start because copyright is expensive.In 2020, NetEase won the exclusive copyrights of programs such as “Singer”, “Sound on the Ground 3”, “Hey Singing”.Among them, the copyright of the “Singer” series does not belong to NetEase, and the quotations of the popular programs are also rising.Although under the coercion of the National Copyright Administration, more than 99% of copyright sharing has been achieved by different music platforms through the conversion authorization mode.A well-known person told Sauna and Yewang that the copyright is a big package for both record companies and music platforms. The content of the content that users really want is not high, even only about 2%.Ding Lei mentioned in the conference call that the copyright exclusive and its playable content became less.In essence, NetEase is currently raising the murder of cloud music as the second independently listed business segment after Youdao.However, because its specific financial data is packaged in the business reports of the entire group, how to make high predictions becomes a problem.Some investors told Sauna that Yeewang can infer the value of NetEase Cloud Music from the user scale and estimated rate, and this is precisely its current problem.From the perspective of NetEase Cloud Music itself, the purchase of copyright through Alibaba’s financing has only given itself more than two years.In August 2019, Ding Lei once responded to how NetEase Cloud Music made commercial profits, including membership development, advertising, live audio, and deeper social functions in Cloud Music, and expressed confidence.The reality is, “Even the leading Tencent music ratio is less than 20%, and NetEase can only achieve a breakeven if it reaches this number,” an industry source told Sauna, Yewang.NetEase has been extra cautious about financial expenditures in the past year, and has successively replaced multiple businesses. The most notable one is the sale of cross-border e-commerce koalas, not the fact that NetEase has also cut performances andoperation department.Not only that, an official representative told reporters that in order to avoid Ding Lei’s strong transfer of business, Yun Music had set up a group that included NetEase Cloud Music’s CEO Zhu Yiwen, Vice President Ding Bo, and finance and human resources leaders to make decisions.”The problem of NetEase cloud music can be grinded from Ding Lei’s messy playlist,” the above interviewees pointed out that NetEase’s problem is that there is no complete system.Behind-the-scenes gold conflicting copyright investment makes the Internet giants have a dilemma. On March 11, Alibaba announced that it has reached a digital music content cooperation with Taihe Music Group. Alibaba ‘s innovative business group includes Xiami Music, Tmall Genie, and short music products WhalingBoth Heya Duck will get artist song authorization and content solutions.On March 13th, NetEase Cloud Music announced that it has reached a copyright cooperation with Ghibli Studios and obtained a full authorization of some of the other party’s animation music, including “Totoro”, “Thousand and Thousand Seeking”, “Hall’s Moving Castle” and other animated popular music.Alibaba, with its music business in hand, invested in NetEase Cloud Music, which was once unclear.Tencent’s “Shenwang” once quoted people familiar with the matter as saying that Alibaba Entertainment has focused on Youku, and in the negotiation of foreign cooperation, the person in charge Fan Luyuan once even proposed a policy of selling shrimp music in exchange for Youku traffic, but there is nosuccess.Under the final organizational structure adjustment, Ali Music transferred to the newly formed innovative business group, and Zhu Shunyan, who is directly responsible for UC, took over.This is where the music business draws Ali Entertainment.This is not the first time Alibaba has abandoned its music business.As early as when Gao Xiaosong and Song Ke joined forces, they once transformed the acquired Tiantian Ting into “Ali Planet”. The former Xiami Music is the two cornerstones of Alibaba’s entry into online music.In January 2016, Gao Xiaosong, then chairman of Ali Music Group, announced that it would launch a music platform to build the upstream and downstream of the industry chain, and this product is “Ali Planet”.Gao Xiaosong explained that the model is the same as Taobao, and everyone can open a store on it.But by the end of December 12, Ali Planet announced that it would stop the music service.This move caused the original users to listen every day, and Ali Planet can finally complete the mission.In fact, Gao Xiaosong wants to move offline to online, but the industrial structure has changed, and a press conference that cost 5 million yuan was hit in less than a year.But behind this, an industry person familiar with Ali Music pointed out that the problem is that the decision to purchase exclusive copyrights is not decisive enough, and the replacement of coaches, “Tencent once considered Alibaba as the biggest part, so it was anxious to buy exclusive copyrights.This leads to higher prices.”Record companies are organizing and delaying the decline through various means, and packaging and selling copyrights is one of its means.”You didn’t have to choose,” it’s just that you want a very hot song, you have to buy all the music library, “A Zhe (pseudonym), the founder of a certain music Internet company, told Sauna, Yewang,” ThisIt looks like you want to buy a few pounds of pork, but you have to be stuffed with a few radishes. “This is an industry that has not seen a new model for a long time.Wang Hao, former CEO of Xiami.com, said that not only China but also the world’s music industry is changing.Since the development of the Internet, everyone believes that new forms of music consumption will occur, but so far there has not been a form of music consumption.Regardless of the appearance of Douyin, the biggest change is only from the sale of albums to the sale of singles, and the constant behind this is copyright.Faced with Tencent, Xiami eventually evaded the funding problem and finally sold it to Alibaba.”This basically becomes a record for companies to ask for prices, and the seizure of the exclusive copyrights of several domestic companies has further increased the price.” “If you simply look at the so-called river basin media business, no one makes money.It ‘s just that there are more ways to monetize.”Alibaba has slowed down in the field of music playback.A potential veteran said that Alibaba invested US $ 700 million in NetEase, which can contain Tencent and at the same time anticipate time to think about revenue and experience breakthroughs.From the current point of view, although Alibaba held Xiami and Tiantian two cards before, but did not start well, did not think about the business model.Essentially, multiple bits of a specific object indicate that they are optimistic about byte bounce.Azhe told the sauna that Yewang.com, if ByteDance launches a streaming media product in 2019, it may disrupt the market layout.”From the production of original music to its distribution, it will be an impact on the essential content distribution platform and copyright market,” but ByteDance is not a new move in this field.In Azhe’s view, the copyright market can be divided into two categories: stock and increment.Among them, the stocks are still in the hands of several major record parties, which has led the entire industry to become a giant game.However, now that some record companies have been eliminated from exclusive licensing and profit, they still need to announce channels to promote newcomers. Short video platforms such as Douyin and new gameplay have become the focus of attention.What is the solution to the online music breakthrough?Can Internet-style innovation go a new way? In addition to listening to songs directly, singing online is another scene demand for online music.In this track, Sing Bar, which went online in 2012, was once the leader in 2014 because of its unique business model. In two years, users have grown to 2 billion, and even began to expand to offline and smart hardware.But when Tencent entered the market with the national K song, Sing Bar was busy dismantling the VIE and re-selected the listing place, Chen Hua told the sauna, Yewang, in fact, already started to pay attention to this product before the national K song was launched.But the national K song has the background of Tencent and rushed into the market. Singing it in some fields did not help.In the development of the past few years, the focus of Chen Hua and Sing Bar still focuses on the function of singing, rather than the development of non-music functions.Hou Deyang, vice president of Tencent Music Entertainment Group, once said that the core competitiveness of the rapid development of the national K song is that it has a huge song library and specific accompaniment technology, as well as inheriting the Tencent social chain.With social genes.The live broadcast broke out in 2016, the live broadcast function of the national K song was launched, and Sing Bar created an independent application.Two different choices lead the results in different directions.According to the latest data from QuestMobile, a third-party organization, the number of daily active users of the national K-Kong is maintained at over 40 million, while the singing bar is between 2 million and 3 million.However, in early 2020, Sing Bar announced its upgrade to a pan-music content platform, and the new crown epidemic created an offline-to-online transfer, which also promoted the strategic upgrade of Sing Bar.Due to the epidemic, many music lovers cannot attend concerts or music festivals offline, and online has become their new choice.Chen Hua told the sauna, Yewang, they found that singing is a place to play music, and the number of users of many businesses doubled or tripled.In early 2020, Sing Bar executives began to discuss how to meet the needs of users. After the online LiveHouse model was approved, a R & D team was quickly established.Chen Hua ‘s idea is to provide singers with a job opportunity in online performances, while Singing Bar can cut into performance ticketing and artist-related information business, and eventually become a new platform.Although this is an emergency measure during the outbreak, executives have decided to take it as a long-term strategic direction.At the beginning of March, Sing Bar announced that the total number of viewers of its live broadcast co-hosted with Modern Sky reached 2 million, while the highest number of viewers in a single game exceeded 380,000.Through live concerts and video clips provided by previous video sites, the user experience is essentially different.However, compared with the proportion of impressed users, Chen Hua hopes that the practitioners of the music industry will know how to sing. “We believe that good content can attract a large enough user group. We hope that more music creators will occupy singing first.”However, for the LiveHouse type model, the industry has mixed views.The former told reporters that after the epidemic has passed, consumers will eventually have to vote, and offline commercials cannot be replaced online.In other words, a company that provides this kind of gameplay during the epidemic still needs to find new business channels.The product that originally used K song as the main singing bar has been renamed “Singing Bar Audio and Video”. The reason is that the ability of short video software such as Douyin and Kuaishou to spread music has made the industry see the huge role of short video.The popularity of some original musicians can also see new opportunities in the online music industry.Tencent’s quick shots are not just about cooperating with Kuaishou to explore the combination of short films and music, starting the “dual platform through train” mode to create stars.Even Tencent products have already settled in Douyin.Tencent Music said that after adding short videos to music streaming in the second quarter, the daily short video traffic increased by nearly 40% every year.In January 2020, Sing Bar launched a brand new slogan “Play music, let’s sing it” to complete the strategic upgrade, and at the same time, product 10.Version 0 is online, and features such as sing bar and sing, smart mix and cut are introduced.In order to meet the user’s demand for music videos, Sing Bar was upgraded to a pan-music content platform to build a music content community and help enthusiasts and creators complete the entire process from production to revenue.Chen Hua lamented to reporters that the past few years have restricted development, and it took a long time to communicate with users continuously, only to find that one-tenth of users on its platform have issued records, so that musicians have already gathered on its platform.Even so, an opportunity for copyright authorization also allowed Chen Hua to find an opportunity.Sing Bar found that the copyright authorization it obtained can support it to carry out more different businesses. Chen Hua told the sauna and Yewang.However, innovative gameplay has also attracted the attention of giants.In November 2018, Alibaba started to launch the singing duck project.Li Yang, the person in charge of the project, told the sauna and Yewang that the product was launched in March 2019, and began to play and play in May.The short video found in the previous market research can avoid the development of the existing music product form solidification and copyright supplement, and meet the user’s demand for flooding creation.Prior to being responsible for singing ducks, Li Yang joined UC in 2012 and was responsible for browser overseas and overseas information. He returned to the domestic market in 2018.Because the singing duck’s music is only used for dozens of seconds, Li Yang believes that there is no way forward in the face of copyright.However, some people also asked, “Are you enjoying music or playing a music game?””Sauna, night net editor Liang Chen Xu Chao proofread Wang Xin