Digging the two major online music giants in the incremental market compete for "get on the car"

China Commercial Daily (Reporter Zhao Yiru) NetEase Cloud Music "Space Audio" is about to be launched, aiming at smart car scenarios. Coincidentally, Tencent Music Entertainment Group (hereinafter referred to as Tencent Music) has also been deployed in the field of vehicle music. Why do the two online music giants choose to force smart car scenes?

Explore intelligent connected car scenes

Recently, Netease Cloud Music announced that its "space audio" technology is about to be launched and explores intelligent connected car scenarios.

According to reports, space audio is an audio technology far beyond stereo and surround sound. With the core of human audio fields, it presents the vast sound field effect of three -dimensional space. It restores the music experience of the launch, distance, direction, and moving. At the same time, Netease Cloud Music stated that it is about to reach cooperation with industry audio technology manufacturers to introduce more high -quality space audio content, and explore high -quality music experiences for "space audio" such as "space audio" in multi -terminal scenes such as intelligent connected cars.

Prior to this, Netease Cloud Music has been arranged many times in the car music market. On June 15 this year, it announced the launch of the GAC Ean Motor Application Store; on June 10 this year, it reached a cooperation agreement with Jihu Automobile. Earlier, it had reached cooperation with new energy vehicle brands such as Tesla, ideal, Xiaopeng, and Xiaopeng. At the same time, it has also launched heads of head factories such as FAW Volkswagen, SAIC -GM, BYD, Wuling, Changan, and other heads.

As for the reasons for cooperation, Netease Cloud said that the user base of Netease Cloud Music has always been based on young people, and the cooperation is the user base and the broad market prospects that are in line with the cooperative car companies. At the same time, Netease Cloud Music also said that it will explore cooperation with more car company brands in the fields of high -quality music, scene engines, vehicle sound effects and other fields.

China Commercial Daily reporters asked Netease Cloud Music for the driving role of user growth and benefits on the car music market. Netease Cloud Music said that there is no such split data at present.

Coincidentally, Tencent Music also has a layout in the car music market. Tencent Music has not provided the latest layout of China Business Daily reporters in the car music market. The first domestic music vehicle application was launched in China. In 2016, it was officially established in the vehicle business department, which belongs to the pioneer in the field of vehicle music. At the B -end market, there are more than 60 domestic and foreign cooperative manufacturers at home and abroad, and the market share is more than 80%, which is the first in the industry. It has a large number of active users on the C -end, with a total of more than 60 million in car users. The number exceeds 30 million.

QQ Music, which belongs to the platform of Tencent Music, also launched the "Love Listening" product with Tencent Car Union, as well as the content of other entertainment products to build an in -car entertainment scenario for users; Listening and switching on mobile phones and vehicles can be achieved.

Industry prospects are continuously optimistic

Why is the online music platform formed the intelligent car scenario?

Zhang Xing, a researcher at China Research, told the China Business Daily reporter that with the continuous iteration of the automotive industry, domestic automobile ownership and the number of smart cars have stable growth. In recent years, the demand for the vehicle music industry has increased greatly, and the industry prospects have continued to be optimistic. Many Internet companies have begun to lay out, hoping to seize emerging markets.

According to statistics from the Ministry of Public Security, as of the end of June this year, the national car ownership was 310 million. The number of new energy vehicles in the country reached 101 million, accounting for 3.23%of the total vehicle. In the first half of this year, the newly registered new energy vehicle was 2.209 million units, an increase of 1.106 million units compared with the number of newly registered registration in the first half of last year, an increase of 100.26%, a record high.

Because the Internet of Vehicles is the main application scenario of 5G in the field of intelligent connected automobiles and the rapid development of 5G industries, the development of the Internet of Vehicles industry has been strongly promoted. According to data from China Business Industry Research Institute, in recent years, the scale of my country's networking market has maintained a high speed growth. The average compound growth rate of the annual compound growth rate of 29.95%in 2017-2020 has reached 29.95%. It is expected to increase to 277.1 billion yuan in 2022. At the same time, the penetration rate of the car networking industry in 2020 has reached 48.8%, exceeding the penetration rate of the global car industry, and it is expected that the penetration rate in 2022 will be close to 60%. The size of users in the car industry has also maintained a growth trend. In 2020, the number of users of the Internet of Vehicles was about 137.13 million units, an increase of 52.33%year -on -year, and it is expected to reach 208.9 million units in 2022.

"In recent years, the development of the Internet of Vehicles has gradually accelerated, and the application of related technical applications has gradually been strengthened. Car scenes have become an important layout direction for online music platforms. The sustainable development of emerging technologies such as 5G technology and artificial intelligence has also provided good development space for car music. Car music is constantly developing to intelligent and humanized. "Zhang Xing said.

With the expansion of the industry scale of the smart automobile market, the development prospects of vehicle music have also risen.

Ai Media Consultation data shows that the size of the car music market in 2020 has reached the highest value in recent years, with 89.9%, and the market size is 7.34 billion yuan. The size of the car music market in 2021 was 12.01 billion yuan, an increase of 63.6%year -on -year. It is expected that the size of the car music market in 2022 will reach 16.98 billion yuan, an increase of 41.4%year -on -year; in 2023, it will reach 22.74 billion yuan, a year -on -year increase of 33.9%.

"The current car music is indeed a very important scene of the music market. In the past, everyone used to use CarPlay and Bluetooth to listen to songs when driving. It is getting higher and higher, the audio configuration is getting better and better. It is normal for users to use music platforms to obtain higher quality music services. And 'with car clan' is a user group with strong consumption willingness. Therefore For the online music platform, its market advantage is significant. "Jiang Han, a senior researcher at Pangu Think Tank, told China Business Daily.

Jiang Han believes, "At present, many new energy -making vehicles and new forces have launched the concept of music cockpit, so cooperation with car companies will have a large market space for online music platforms. The fourth screen, even smart cockpit will become the development direction of the entire market. Therefore, online music platforms can do a lot of things in this regard. "

Continue to find a new increase market

The decline in online music service MAU (number of monthly active users) may also become another reason why the music platform is looking for a new increase market.

In the first quarter of this year's financial report, Netease Cloud Music and Tencent Music's online music services MAU both decreased year -on -year.

Netease Cloud Music Online Music Service MAU was 181.7 billion, compared with 183.1 billion in the same period last year. Tencent Music was 604 million, a decrease of 1.8%compared with 615 million in the same period last year; not only that, this is already the eighth consecutive quarter of Tencent Music online music services MAU.

The performance of the two online music platforms in the first quarter of this year is also mixed. Tencent Music still maintains a profit model, but its revenue and net profit have shown negative growth; Netease Cloud Music has not yet got rid of the losses, but the income increased year -on -year, and the loss was narrowing.

The total revenue of Tencent Music in the first quarter of this year was 6.64 billion yuan, a year -on -year decrease of 15.1%. The net profit attributable to the company's shareholders was 609 million yuan, a year -on -year decrease of 34%. Netease Cloud Music's revenue in the first quarter of this year was 2.1 billion yuan, an increase of 38.6%year -on -year; the net loss after adjustment was 151.7 billion yuan, a year -on -year narrowing of 46.6%.

So, how can they achieve effective growth in the car music market?

"In fact, the development of the car music market depends on the past accumulation of the music platform. At the same time, the young users of new energy vehicle users account for a high proportion, and the brand tone and product experience are also critical. The development of car music is better. "Jiang Han said.

Zhang Xing believes that the key to expanding the online music platform to expand the car music market is resources and products. Resources mainly refer to music tracks. By purchasing music copyrights, the number of libraries on the platform can be expanded to meet the preferences of different users. The product is mainly from the aspects of personalized services. Through the different preferences of different car owners, the music content is recommended to improve the user experience.

Ai Media Consulting analysts believe that the current car music platform is mainly focused on improving user experience, and commercialization methods mainly depend on membership consumption and advertising. As the car music market has gradually matured and the penetration rate of the Internet of Vehicles will increase, the commercialization model of vehicle music will continue to be enriched, driving the size of the vehicle music market to continue to grow.

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