(Yicai Global) April 12 -- NetEase Cloud Music, which launched four years ago, has completed its CNY750 million (USD109 million) round-A financing, which was led by Shanghai Media Group ("SMG") and its wholly-owned subsidiary Radio and Television Station of Shanghai. Hunan Broadcasting System's Mango Wenchuang (Shanghai) Equity Investment Fund Partners LLP and CICC Jiatai Fund also invested.
Shanghai Media Group is Yicai Global's parent company.
NetEase Cloud Music's valuation rose to CNY8 billion. The number of Netease Cloud Music users has surpassed 300 million, making it a top online music platform.
A large part of the funding NetEase Cloud Music obtained will be used for content and copyright system building, NetEase Cloud Music Chief Executive Zhu Yiwen said at a press conference yesterday. "For the future development of NetEase Cloud Music, we will first focus on the content, followed by the promotion of musicians."
NetEase Cloud Music has become China's largest independent music platform, with 40,000 participating independent musicians, Zhu said.
NetEase Cloud Music's strategic shareholders include television media giants that have the ability to produce content and cultivate intellectual property, while NetEase Cloud Music can promote artists and songs, said Zhu.
Television has a strong influence in the promotion of artists and can make some less well-known artists popular quickly and drive online music demand, Zhu said.
NetEase Cloud Music's income mainly comes from membership fees, digital album sales, and advertising, Zhu said. In the future, the music platform will try to take advantage of music-related product sales, offline performances, and ticketing.
After a period of consolidation in the online music platform market, QQ music has been the only profitable player among NetEase Cloud Music; Tencent Music Entertainment Group's QQ music, Kugoo music, and Koowo music; Alibaba's Ali music; Taihe Music Group's Baidu music; and others.