HANGZHOU, China, March 24, 2022 /PRNewswire/ — Cloud Village Inc. (HKEX: 9899, “NetEase Cloud Music” or the “Firm”), a number one interactive music streaming service supplier in China, right this moment introduced its monetary outcomes for the fiscal 12 months ended December 31, 2021.
Abstract of Key Monetary and Working Metrics
(RMB in 1000’s, except in any other case said)
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Yr ended 31 December |
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2021 |
2020 |
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Monetary Metrics |
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Income |
6,997,622 |
4,895,731 |
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Gross revenue/(loss) |
142,674 |
(595,335) |
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Loss earlier than earnings tax |
(2,051,423) |
(2,949,887) |
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Loss for the 12 months |
(2,056,092) |
(2,951,463) |
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Non-IFRS measure: |
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Adjusted web loss1 |
(1,043,712) |
(1,567,989) |
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Working Metrics |
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On-line music companies |
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-MAUs (million) |
182.6 |
180.5 |
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-Month-to-month paying customers (million) |
28.9 |
16.0 |
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-Month-to-month ARPPU (RMB) |
6.7 |
8.4 |
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Social leisure companies |
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-Month-to-month paying customers (thousand) |
683.3 |
327.1 |
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-Month-to-month ARPPU (RMB) |
448.1 |
573.8 |
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Fiscal Yr 2021 Key Monetary and Working Highlights
- Income was RMB6,997.6 million, a rise of 42.9% in contrast with RMB4,895.7 million for a similar interval of 2020.
- On-line music companies:
-Income from on-line music companies was RMB3.Three billion, a rise of 25.4% in contrast with RMB2.6 billion for a similar interval of 2020. The rise was primarily because of the vital development in revenues from gross sales of membership subscriptions.
-MAUs of on-line music companies grew to 182.6 million from 180.5 million for a similar interval of 2020.
-Month-to-month paying customers of on-line music companies expanded to 28.9 million from 16.Zero million for a similar interval of 2020.
-Month-to-month ARPPU (common income per paying consumer) of on-line music companies was RMB6.7 in contrast with RMB8.4 for a similar interval of 2020. The lower was primarily because of the elevated use of joint membership packages in cooperation with different platforms from 2020 to 2021, through which the Firm’s membership subscriptions had been bought at a reduction to advertise our subscriptions and broaden the attain of the Firm’s companies. - Social leisure companies and others:
-Income from social leisure companies and others was RMB3.7 billion, a rise of 63.1% from RMB2.Three billion for a similar interval of 2020, pushed by the fast development of social leisure companies income, considerably all of which was derived from stay streaming companies.
-Month-to-month paying customers of social leisure companies elevated to 683.Three thousand from 327.1 thousand for a similar interval of 2020.
-Month-to-month ARPPU of social leisure companies was RMB448.1 in contrast with RMB573.8 for a similar interval of 2020. - Gross revenue was RMB142.7 million, in contrast with a gross lack of RMB595.Three million for a similar interval of 2020. Gross margin improved to 2.0% from unfavorable 12.2% for a similar interval of 2020, because of the numerous income improve and management over content material licensing charges.
- Web loss was RMB2.1 billion, narrowed by 30.3% in contrast with RMB3.Zero billion for a similar interval of 2020.
- Adjusted web loss was RMB1.Zero billion, narrowed by 33.4% in contrast with RMB1.6 billion for a similar interval of 2020, primarily because of the elevated income in addition to improved price management.
Notice:
(1) Adjusted web loss is outlined as loss for the 12 months adjusted by including again equity-settled share-based funds and modifications in truthful worth of convertible redeemable most popular shares.
Enterprise Overview
We function a number one on-line music platform that includes a extremely interactive content material neighborhood for music lovers when it comes to consumer scale and engagement. We have now constructed a large-scale, sturdy and quickly rising enterprise to supply community-centric on-line music companies and social leisure companies to our customers. Our model appeals to and resonates with the spirit of younger, extremely engaged music lovers. By means of our on-line music platform, NetEase Cloud Music, and ancillary social leisure merchandise, comparable to LOOK Reside Streaming, Sheng Bo and Yin Jie, we empower music lovers with all kinds of technology-driven instruments to find, take pleasure in, share and create various music and music-inspired content material and to work together with one another. Our income streams primarily encompass two key elements, on-line music companies and music-inspired social leisure companies. Our on-line music companies comprise membership companies to our paying customers, promoting companies to promoting prospects in numerous codecs together with model promoting and performance-based promoting, gross sales of digital albums and singles to purchasers, and copyright sublicensing. Our music-inspired social leisure companies embrace internet hosting stay streaming companies via which we generate income from digital merchandise purchases by our neighborhood and consumed on our platform.
We kicked off 2021 with a agency step ahead in our evolution into an all-in-one on-line music and audio leisure platform, residence to music lovers in China. All year long, we efficiently enriched our content material ecosystem with rising our unbiased artist numbers and enlarging our music labels library, elevated our differentiated neighborhood ecosystem and improved consumer engagement throughout our massive and steady consumer scale. In the meantime, we meaningfully improved our profitability, primarily attributable to strengthened commercialisation functionality and optimised content material price construction. We are actually higher positioned to shift our superior choices into full play amid a more healthy business atmosphere.
Our MAUs of on-line music companies elevated from 180.5 million in 2020 to 182.6 million in 2021. Our customers are extremely engaged, with DAU/MAU ratio staying effectively above 30% in 2021, and pushed by enhancements to our complete and distinctive product and content material choices, together with music tracks from each large labels and unbiased musicians, in addition to our music-inspired consumer generated content material (“UGC”). Every every day lively consumer spent roughly 78.2 minutes per day on common listening to music on our platform in 2021. In the meantime, almost half of customers browsed the “feedback part” whereas listening to music. On the finish of 2021, 27% of our customers generated content material on the platform, and 32% of music streams had been attributable to platform suggestions, up from 25% and 28%, respectively, as of the tip of 2020.
These enhancements, together with our continued monetisation efforts, are already displaying significant positive factors in our working leverage, and for the complete 12 months of 2021, our whole revenues grew by 42.9% year-over-year to RMB6,997.6 million. We have now additionally managed to enhance profitability together with content material enhancement, primarily attributable to price optimisation of our copyright construction. Consequently, we achieved a optimistic gross margin of two.0% for the complete 12 months of 2021.
Wanting forward, we’re strategically increasing our prospects by:
- cultivating our customers’ willingness to pay and pursuing commercialisation potential, by way of improved consumer expertise, revolutionary merchandise and content material choices, and deepened consumer engagement;
- exploring improvements in social networking, utilising consumer behaviour and music choice to attach customers with one another, offering further social networking choices; and
- additional diversifying our content material choices with higher funding effectivity, by way of lively negotiation with copyright holders, in addition to progress in in-house music manufacturing.
We count on to generate incremental contribution from these initiatives going ahead.
Product and repair improvements
We continued our innovation efforts in 2021. Innovation and superior high quality have been the core aggressive benefits for our services and products. Progressive options on our platform allow customers to specific themselves and work together with others.
- We launched a brand new perform known as “Sheet Music Library” in November. By means of the official copyright cooperation with the world-famous digital music rating suppliers, we’ve launched thousands and thousands of authorised music scores, starting from classical music to pop music. By means of this perform, our customers can shortly and precisely examine and use the authorised music scores of their favorite music tracks. Along with offering extra skilled and environment friendly content material companies for music lovers, we’re additional exploring extra potentialities within the music training fields together with music rating videolization. On the identical time, we’re permitting our customers to add music scores to additional diversify our user-generated content material and music ecosystem.
- We launched our brand-new “Beat transaction platform” in mid-December, accommodating transactions between beat-makers and musicians or music lovers. We imagine this innovation couldn’t solely enable beat-makers to realise business worth, but additionally liberate content material creativity by particular person musician with higher linkage with upstream content material creators, enriching our content material ecosystem.
- We launched revolutionary perform “Audio Artists Feedback” in November, permitting music abilities to publish audio-formatted messages within the remark part beneath their new music tracks. The brand new perform supplied artists with broadened situation and codecs to advertise their new songs and higher join with audiences, via their distinctive voice texture and traits.
- Our new perform “Music Reward Field” has been effectively obtained by our customers, which permits particular person customers to ship customised video content material to pals. The brand new perform not solely fosters music content material recreation and distribution, but additionally enhances the resonance between customers.
- We actively expanded our footprint within the IoT market in 2021 with the expansion of good audio system at an accelerated tempo starting in November 2021 along with music copyright opening on good units. We imagine broader IoT protection will help us appeal to new customers, in addition to enhance our customers’ total exercise and stickiness throughout a number of units.
Content material enhancement
We provide a full spectrum of assorted content material as our younger customers’ calls for are more and more various and personalised. Our content material library consisted of roughly 80 million music tracks by the tip of 2021, together with music from established labels in addition to unbiased artists. Our sturdy library, along with UGC content material, brings customers broad and differentiated content material.
Music labels. We continued to safe extra high-quality content material with higher return on funding (ROI). In July 2021, regulators in the Folks’s Republic of China (the “PRC”) issued an order on anti-monopoly, which has the impact of stopping exclusivity within the music content material of music labels going ahead. We welcomed this beneficial shift because it fosters more healthy growth of the general on-line music business in China.
- In August 2021, we accomplished a direct settlement with Warner Music Group, which suggests we now have direct digital distribution contracts with all three of the world’s largest recording labels.
- We’re additionally actively finishing our main Chinese language music library, including new copyrighted music from common labels within the second half of 2021, together with Fashionable Sky, Emperor Leisure Group, China Report Group, Feng Hua Qiu Shi, and Yuehua Leisure, amongst others. Along with bringing on extra music copyrights, we attempt to deepen our collaboration with music labels, together with customised music, ticketing and stay reveals.
Extra importantly, we’re happy to see beneficial business tendencies in additional cheap copyright charges and value constructions, offering us with the flexibleness to optimise our funding in content material utilizing a extra disciplined and predictable strategy.
Unbiased artists. Along with music labels, we grew to become a pure incubator of music expertise searching for an viewers, empowered by our large neighborhood and huge cohort of younger customers with various and personalised tastes. By the tip of 2021, we had been serving greater than 400,000 registered unbiased artists on our platform. Regardless of our fast scale growth, the exercise of our unbiased artists continued to steadily enhance. Inside our content material library, about 1.9 million music tracks got here from our registered unbiased artists, which represents a rise of roughly 80% from that on the finish of 2020.
In 2021, our assist tasks for unbiased artists helped them create and promote music, in addition to realise business worth.
- In late November 2021, we launched “Undertaking Cloud Ladder 2022,” upgrading our unbiased artists’ challenge with enriched visitors and business assist. We firstly prolonged our unbiased artist identification system to music arrangers and producers, along with singers and composers/lyricists. Complete assist tasks comparable to this one assist nurture expertise throughout the worth chain of music growth and manufacturing, additional enriching our music ecosystem.
UGC content material. In 2021, we continued fostering our UGC content material ecosystem via fixed innovation and product enchancment throughout a number of content material codecs, together with however not restricted to Moments (image/textual content), Sizzling Subject, Podcasts (audio) and Mlogs (video/image). We additionally developed a number of assistant instruments to facilitate UGC creation on our platform, additional enhancing our UGC ecosystem and customers’ engagement. Moreover, we’ve gathered 3.1 billion UGC playlists on our platform. Our distinctive consumer base and supportive neighborhood tradition makes our UGC content material unparalleled available in the market.
In-house music. In 2021, we made progress with our in-house music manufacturing initiatives, which additional diversify and differentiate our content material providing. A few of our common in-house music contains “Dislocation of Time and Area” 《錯位時空》, “Take My Coronary heart” 《以愛為囚》, “Masquerade” 《假面舞會》 and “Delete It” 《刪了吧》, demonstrating our capacity to provide hit songs in home.
Going ahead, we plan to convey extra high quality content material to our platform to enhance our music library, whereas working along with different business gamers to profit all music lovers.
Future Improvement
We search to additional broaden the boundaries of our platform and give attention to long-term development. To that finish, we plan to implement the next methods over the following three years:
(a) Relentlessly innovating our services and products. We’ll proceed to relentlessly innovate and refine our services and products whereas deepening our understanding of customers’ evolving wants and preferences. By making a extra clever, considerate consumer expertise, we imagine we’ll additional strengthen our capacity to draw and have interaction customers and to extend their loyalty and dedication to our services and products. We may even proceed to counterpoint and diversify our music and music-inspired content material to deepen our reference to our customers and strengthen our market place. On the identical time, we’ll actively discover new enterprise fashions to maintain our finger on the heart beat to make sure that we stay adaptive to tendencies within the on-line music leisure business.
(b) Additional growing our neighborhood. We’ll give attention to offering extra personalised and diversified music and music-inspired content material to our customers, whereas persevering with to encourage and empower them to create content material. Particularly, we’ll uphold our dedication to supporting unbiased artists, attracting and cultivating them by leveraging our distinctive, partaking neighborhood tradition, organising numerous on-line and offline occasions, and provoking them to repeatedly create high-quality content material on our platform. We’re dedicated to enhancing consumer engagement and deepening customers’ reference to one another and with our platform. By additional stimulating consumer participation and content material creation, we imagine we’re in a position to organically develop our consumer base, improve consumer stickiness and enhance paying consumer conversion.
(c) Persevering with to put money into technological capabilities. We’ll proceed to put money into enhancing our technological capabilities to raised perceive our customers and enhance consumer expertise. Particularly, we’ll put money into analysis and growth for synthetic intelligence, machine studying and information analytics to realize extra perception into our customers’ wants and preferences and to refine our capacity to make personalised content material suggestions. On the identical time, we’ll proceed to put money into and improve our AI-enabled artistic help applied sciences to empower unbiased artists and customers of their artistic pursuits. We may additionally discover digital actuality and augmented actuality applied sciences to supply a extra partaking expertise of music and music-inspired content material, particularly in our music-inspired social leisure companies house.
(d) Pursuing win-win collaboration with our companions. Leveraging our model, consumer base, neighborhood tradition and technological capabilities, we’ll proceed to deepen our collaboration with quite a lot of companions, comparable to content material companions, manufacturers and advertisers and know-how corporations, to strengthen our synergy with them and to realize extra win-win conditions. For instance, we’re in a position to obtain additional content material enrichment and income diversification whereas empowering our companions with our worthwhile consumer and content material pool. We’ll search to discover new enterprise fashions with current and potential companions to understand the regular, long-term development of our platform.
(e) Additional diversifying our monetisation capabilities. In response to the repeatedly evolving wants of our customers, we’ll proceed to leverage our improvements to discover new monetisation channels, additional diversifying our sources of earnings and realising the business potential of our platform. We’ll proceed to counterpoint our content material choices and commercialise our platform. For our on-line music companies, we’ll proceed to strengthen our management place in music streaming companies via diversified music content material choices that enchantment to our customers. For our social leisure companies, we plan to broaden our choices of music-inspired content material, comparable to audio and video stay streaming content material by attracting premium performers to our platform. We may even promote our paid content material and companies obtainable in our neighborhood and subsequently improve the variety of paying customers.
About Cloud Village Inc.
Launched in 2013 by NetEase, Inc. (NASDAQ: NTES; HKEX: 9999), Cloud Village Inc. (HKEX: 9899) is a number one interactive music streaming service supplier in China. Devoted to offering an elevated consumer expertise, Cloud Village Inc. supplies exact, personalised suggestions, promotes consumer interplay and creates a powerful social neighborhood. Its give attention to discovering and selling rising musicians has made Cloud Village Inc. a vacation spot of alternative for exploring new and unbiased music amongst music lovers in China. The platform has been recognised as the most well-liked leisure app amongst China’s vibrant Era Z neighborhood.
Please see http://ir.music.163.com/ for extra info.
Ahead Wanting Statements
This press launch comprises forward-looking statements referring to the enterprise outlook, estimates of economic efficiency, forecast enterprise plans and development methods of the Firm. These forward-looking statements are primarily based on info presently obtainable to the Firm and are said herein on the idea of the outlook on the time of this press launch. They’re primarily based on sure expectations, assumptions and premises, a few of that are subjective or past our management. These forward-looking statements could show to be incorrect and might not be realised sooner or later. Underlying these forward-looking statements are lots of dangers and uncertainties. In mild of the dangers and uncertainties, the inclusion of forward-looking statements on this press launch shouldn’t be considered representations by the Board or the Firm that the plans and aims might be achieved, and traders mustn’t place undue reliance on such statements.
Non-IFRS Measure
To complement our consolidated outcomes, that are ready and introduced in accordance with Worldwide Monetary Reporting Requirements (“IFRSs”), the Firm makes use of adjusted web loss as a further monetary measure, which isn’t required by, or introduced in accordance with, IFRSs. We imagine that this measure facilitates comparisons of working efficiency from interval to interval and firm to firm by eliminating the potential influence of things that our administration doesn’t take into account to be indicative of our group’s working efficiency, comparable to sure non-cash objects. Using this non-IFRS measure has limitations as an analytical device, and shareholders and potential traders of our firm mustn’t take into account them in isolation from, as an alternative to, evaluation of, or superior to, our group’s outcomes of operations or monetary situation as reported beneath IFRSs. As well as, this non-IFRS monetary measure could also be outlined in a different way from comparable phrases utilized by different corporations, and might not be akin to different equally titled measures utilized by different corporations. The presentation of this non-IFRS measure shouldn’t be construed as an implication that our future outcomes might be unaffected by uncommon or non-recurring objects.
Investor Enquiries:
Angela Xu
Cloud Village Inc.
[email protected]
Media Enquiries:
Li Ruohan
NetEase, Inc.
[email protected]
SOURCE NetEase Cloud Music
