Author: Travis
After Q2 reported lower-than-expected revenue$Tencent Music (TME.US) $The share price has been falling, and so far, it is clear from the chart that the company's share price rose twice at the end of September and the end of October.
Do not underestimate these two increases of only 10%, because behind this are Tencent Music's two important business model practices in today's Chinese music streaming market, which are of great significance to the promotion and implementation of the company's strategy in the future.
Source: Futu Niuniu
1. Jay Chou's "promise not to cry" has become TME's "laugh when you see it".
Launched at 11:00 in the evening, 25 minutes online, the total sales of the three major platforms QQ, Kui and KuGou reached 2.29 million, with sales exceeding 6.8 million yuan; after 12 hours of launch, QQ Music platform alone set a sales record of more than 15 million, which was so hot that the platform went down.
Yes, this is the influence of the King of Heaven. Although it is not as powerful as it was then, Jay Chou joined hands with Ah Xin in May. This lineup is really a blockbuster in today's bleak Chinese music world. For a moment, the streets and social media were talking about all kinds of eggs for the new song, and even the hostess of MV was very popular.
As of the latest data on November 4th, 8.8696 million copies of "promise not to cry" have been sold. Calculated at a unit price of 3 yuan, the total revenue has reached 26.6089 million yuan. I believe it is too late for the company's financial staff to cry and laugh when they see such data.
Source: QQ Music, Futu Niuniu
As a master of domestic music copyright, Tencent Music has the license of more than 35 million tracks and owns more than 90% of the entire music library in China. The company has reached major distribution and licensing agreements with Sony Group Corp, Universal, Warner and other record companies. It has a deep binding of many big-name musicians.
Jay Chou's new song launch of this wave of operation, so that the company successfully found a social + single music cash way. With the advantages of copyright and resources, we can enlist a large number of fans to recharge their idols, directly contributing to the realization of online music content and the expansion of the scale of paying users.
This is not, as the second in the industry, NetEYun Music also copied a copy at the end of October: Wang Jiaer's first digital album was released on the 25th, with sales setting a record for the highest sales of digital albums on the platform.
Source: NetEase, Inc Yun Music, Futuo Niuniu
Second, the scalpers are afraid of the fire-- "Chen Li", a new attempt to realize the economic IP of fans.
Without much to say, just above: the status of scalpers released on the opening day of the "Chen Ling" concert on October 12.
Source: Futu Niuniu
The "Chen Xiang Ling" National style Music Concert opened two consecutive performances in Nanjing on November 1 and 2. On the day of the opening of the concert on October 12, tickets with a minimum of 627 yuan and a maximum of 1980 yuan were all sold out within five seconds, and finally scalpers even charged the ticket price to 150000 yuan each. Here, you can deeply feel: what is the Maslow demand level, what is the Engel coefficient, what is the Gini coefficient.
Can't get to the scene, it's all right, your other friend Tencent video has been online and launched to you online "e-ticket": 30 yuan for members, 50 yuan for non-members.
As of 04:30, more than 730000 people had booked the concert. According to a rough calculation, the revenue of live streaming fee alone is more than 20 million.
As of November 4, the cumulative sales of "Chen Qing Ling" national style music albums have reached 1.0843 million, with sales reaching 21.6862 million yuan.
Source: QQ Music, Futu Niuniu
Film and television, music, live, live, a combination of various forms, not only make Tencent video popular, but also make Tencent Music drink spicy. In the current hot and dry environment of fan economy, the linkage between Tencent Music and film and television to deepen the development and realization of IP can be said to be a new attempt in the entertainment industry.
Third, in fact, all the plays have been written
As early as in the Q2 financial report, the company said to strengthen cross-border cooperation and cooperate with movies, TV dramas and games to create excellent original music.
At present, with the electric sound of LOL, Tencent Music has been very mature in the linkage with the game, and this "Chen Ling" allows Tencent Music to interact with Tencent's video, animation and other fields, and the commercial value of the platform and content has been further improved.
In terms of music library, the company also said that through "content value-added" and other strategies to expand the content ecology, so that music creators can benefit from it.
These two big strokes of Q3 can be said to be the implementation and implementation of the company's previous strategic plan.
Source: Baidu, Inc., Futu Niuniu
Fourth, while Q3 pays attention to the bright spots, pay attention to the growth of the basic market
The company's Q2 online music paying users reached 31 million, up 33% from a year earlier, with a net increase of 2.6 million; total revenue was 5.9 billion, up 31% from a year earlier; and net profit was 927 million, up 2.5% from a year earlier.
Q3 is expected to benefit from the exclusive launch of King Zhou's content and the company's own barriers in the field of music content, and the number of paying users is expected to grow further. According to Bloomberg guidelines, the company's Q3 revenue will reach 6.461 billion yuan, with an adjusted net profit of 1.062 billion yuan.
But there is no denying that, despite the popularity of paying for affectionate content, more than 70% of the company's revenue is still contributed by the social entertainment business that satisfies users to have fun. Therefore, for Q3 financial results, while paying attention to the bright spots of user growth, we should also pay attention to the growth of the basic market.
Source: Bloomberg, Futu Niuniu