CHN: BMG partner Netease Cloud Music in successful IPO
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Netease Cloud Music, a partner in China of BMG, has had a successful IPO on the Hong Kong Stock Exchange with an opening valuation of around $5.5bn.
BMG announced a strategic partnership with Netease Cloud Music in September 2020 to provide BMG’s international artists and songwriters access to one of China’s most active music platforms and one of the most popular music streaming platforms with 181 million active users and 16 million paying subscribers.
Bertelsmann Asia Investments, a sister division of BMG within Bertelsmann, is a long-time investor in Netease Cloud Music, alongside anchor investors Netease, Sony Music, and Orbis Investments.
Annabelle Yu Long, CEO of the Bertelsmann China Corporate Center and Managing Partner von Bertelsmann Asia Investments, said: “NetEase Cloud Music relies on a differentiated product experience, sharing mechanisms, and a community atmosphere to form a unique user-centric ecosystem. We continue to be optimistic about the company’s transformative role in the music industry, commercialization potential, and unlimited possibilities in the next-generation music social metaverse. BAI has invested and accompanied the company since the B round, and has facilitated the strategic cooperation between NetEase Cloud Music and BMG. We will continue our deep cooperation and grow side by side with the company going forward.”
In 2020, Netease Cloud Music generated $761 million in annual revenue, with music streaming subscriptions and livestreaming services each accounting for about half. Of all the country’s platforms, Netease Cloud Music also has the highest proportion of users born after 1990. It relies heavily on its own recommendation algorithm and artificial intelligence: half of the company’s employees are occupied with developing and maintaining these.
December 8, 2021 9:00am ET by Pressparty