"Today, did you restrain the clouds? "

Recently, the word "net suppresses the cloud" has gone viral. In fact, it is just a new nickname for NetEyun music. As some depressed hypocritical words often appear in the comment area of the platform, each seems to be suffering from depression, making users complain, so a highly generalized homophonic stem arises at the historic moment.

In response, NetEase, Inc Yun Music launched the "Yuncun Review Healing Program" on August 3, inviting psychological experts and volunteers to join the "Yuncun Healing Center" to build a warm and upward community culture; at the same time, vigorously clean up the content of false fabrications and abusive attacks.

A series of measures have made NetEase Music a lot of fans again. Reviewing the last quarter's financial report, NetEase, Inc's music performance is also worthy of attention, and Boss Ding said a lot about music copyright on the conference call.

First, the growth of cloud music is obvious, but advertising revenue is greatly affected by the macro.

In the first quarter, thanks to people staying at home to listen to music and watch live broadcasts, NetEase, Inc's innovative business income increased 28% to 3.003 billion yuan compared with the same period last year. Cloud Music, in particular, has more than 800 million users in China, and its membership income and payment rates have reached new highs. In terms of copyright, the company also reached a cooperation with Rolling Stone in March and Warner in May; in music variety, it reached copyright agreements with hot ensembles such as "I am a singer" and "I am a singer-songwriter"; recently, NetEase, Inc also reached a cooperation with Universal Music, the largest in the world.

Although NetEase, Inc continues to expand the layout of his content, the platform still lacks heavyweight, core-oriented copyright like Jay Chou. On the previous conference call, Boss Ding spit out displeasure and made it clear that it was not that NetEase, Inc refused to spend money to buy it, but that there were individual companies in the market that deliberately did not sell, engaged in copyright monopoly, and "hoarded goods."

NetEase, Inc does not have the copyright of Jay Chou, so NetEase, Inc will create new independent musicians on his own, so Boss Ding called on the industry to devote more resources to Chinese original music. At present, NetEase, Inc Yun Music has more than 160000 independent musicians, and Quku has unique insights in niche and unpopular aspects. it is favored by users through excellent push algorithms, and comments that "NetEase, Inc understands me better than my mother" often appear on the platform. In the future, relying on the advantages of streaming music platform in publicity, distribution, promotion and other links, it can attract more users to upload their own works.

The platform is online again this quarter to "listen together" to further improve live broadcast and social functions. With its own tonality and Boss Ding's love of music, NetEase, Inc Yun Music is expected to become the company's next growth point.

Second, the industry environment has improved, and many new tours will be released soon.

In terms of games, also benefiting from epidemic isolation, the company's game business revenue grew 14% year-on-year to 13.518 billion yuan last quarter, of which about 7% contributed to mobile games. "Fantasy Journey to the West online", "Fifth Personality" and "Onmyoji" are maturing, with outstanding performance; the number of users of traditional PC games has also increased significantly during the epidemic. Through self-research + Blizzard, NetEase, Inc's competitiveness in PC games has been further highlighted.

After the release of the first-quarter results, NetEase, Inc held a 520 product conference, a large number of IP together, including "Code: the Gods Twilight", "Code: t" and other new works, causing players to guess. And recently held ChinaJoy, NetEase, Inc has more than 80 games exhibitors, the classic PC game "Dream" and the VR game "Wild lurker", the new tour "Island era", "A Dream", "Chen Ling" and so on are open to the broad masses of players.

In the second quarter, NetEase, Inc constantly updated the classic IP and launched new works according to his own R & D pace. In June, the second anniversary expansion of "against the current and the Cold" was unveiled, and the new mobile game King of the Hunter, which focuses on fighting with cold weapons, was launched, and a new version of "Operation in the Wild" was released in July. at the same time, the original Harry Potter official mobile game "Harry Potter: the Magic Awakens" hot test, this work also expresses NetEase, Inc's determination to enter overseas markets.

After the rapid growth in the first quarter and the resumption of work and production in the second quarter, the growth rate of the game business may slow down, but as the industry strengthens the examination and approval of version numbers, and the market is effectively regulated, Android Apple Inc and other major platforms will remove games without version numbers one after another. at that time, the environment of the entire industry will be fully improved, and head companies like NetEase, Inc will further benefit.

Conclusion

In addition to games and innovation business, NetEase, Inc youdao's online education income is currently small, but its territory is expanding rapidly. Net income in the first quarter rose 139% year-on-year to 541 million yuan, while online course tuition income (Gross Billings) nearly tripled compared with the same period last year.

Relying on games with traditional advantages, coupled with the rapid growth of innovative business and online education, NetEase, Inc's second-quarter report deserves investors' attention. According to Bloomberg, the company will have revenue of 17.015 billion yuan and net profit of 4.211 billion yuan in the second quarter. The company is expected to release results before August 13, so investors can focus on the company's revenue growth after the resumption of work and production.