NetEase Cloud Music, a popular online music streaming platform, has revealed its financial performance for the first half of 2023. The company reported a net income of 3.91 billion yuan ($607 million) during this period, marking a significant milestone as both its operating profit and adjusted net profit turned positive for the first time.
One of the key factors contributing to NetEase Cloud Music’s success is its focus on enhancing the music-centric product experience and commercialization capabilities. The platform has seen a substantial growth in subscription members, leading to a remarkable increase in gross profit margin. In the first half of 2023, the gross profit margin surged to 24.7%, a significant improvement from last year’s 12.6%.
The number of monthly active users of NetEase Cloud Music’s online music service also witnessed steady growth in the first half of 2023. The platform recorded a total of 206.7 million monthly active users, representing a 13.7% increase compared to the same period in 2022. Additionally, the number of monthly paying users of the online music services reached 41.75 million, indicating growth in both user and payment scales.
The remarkable financial performance of NetEase Cloud Music showcases the increasing popularity of online music streaming platforms in China. As the demand for digital music continues to rise, NetEase Cloud Music’s focus on delivering an exceptional user experience and effective monetization strategies has paved the way for its success in the industry.
With positive financial results and a growing user base, NetEase Cloud Music is well-positioned to further expand its market presence and solidify its position as a leading player in China’s online music streaming industry.