NetEase Raised $600 Million in Investments
One of China’s leading internet and online game services providers recently announced that its music streaming platform NetEase Cloud Music has completed its previously announced round of financing with investors, including strategic partner Baidu, General Atlantic, Boyu Capital and several other investors. The total amount raised was over $600 million, and NetEase remains the controlling shareholder of the NetEase Cloud Music business.
With a population of 1.4 billion and upward trends in consumption, China’s recorded music market is expected to expand considerably. According to iResearch, China’s recorded music market was 45 times smaller than that in the U.S. in 2017, and China’s per capita spending on recorded music is projected to quadruple from 2017 to 2023.
“Content creation and user experience differentiation is embedded in our corporate DNA,” said Mr. William Ding, Chief Executive Officer and Director of NetEase. “A focus on quality and craftsmanship is prevalent in all our product offerings, including online games and e-commerce, among others. NetEase Cloud Music is no different. Music is particularly region-specific and we strive to create the largest interactive community for music lovers in China by providing users with convenient access to both mainstream and independent artists. We remain relentlessly focused on continuous improvement, and we are confident we can further unlock the value of this important asset in China’s thriving online music services market.”
Launched in April 2013, NetEase Cloud Music is now widely recognized as one of the industry’s largest players, with more than 600 million registered users, adding 200 million alone over the last twelve months. NetEase Cloud Music has been praised by industry insiders for providing precise, personalized recommendations and promoting user interaction.
Meanwhile, NetEase reports that more than 70,000 independent musicians have uploaded over 1.2 million songs to the platform.
“Baidu has always been committed to creating the most powerful content ecosystem. We have found that Chinese users still have a lot of room for online music,” said Mr. Wang Lu, Vice President of Baidu. “Netease Cloud Music has made a name for itself in terms of its differentiated user offering, together with Baidu’s leadership in feed business, search content distribution capabilities in China, we look forward to working together to provide users with enhanced service through the strongest content distribution, and the highest quality content ecosystem.”