After the release of financial results, NetEase CEO Ding Lei, CFO Yang Zhao-Xuan and other senior executives attended the financial results call conference and focused on interpreting the development of overseas games market and the development of original music.
Accelerate development of overseas market Global layout to attract overseas creative talent
Ding Lei, CEO of NetEase, said that for NetEase, the overseas game market is a very important development direction. NetEase is an enterprise with high research and development efficiency. In the past two decades, NetEase has accumulated a lot of research and development experience and technology, and has been actively cooperating with overseas creative producers to develop games that global users like.
In the second quarter, NetEase introduced many internationally renowned game producers and made further progress in global talent distribution. In July this year, NetEase established Jar of Sparks Studio in Seattle, United States. Led by Jerry Hook, XBOX veteran and design director of Halo: Infinity, NetEase aims to create a new generation of narration-driven action games with a global vision. NetEase also brought former Far Cry and Assassin's Creed series producer Emile Liang, who had worked at Ubisoft for 23 years, to the Montreal studio as lead producer. Recently, "Resident Evil" and "Ghost May Cry" producer Yuyuki Kobayashi announced that he has joined NetEase Games as a game producer, continue to shine for the game.
Also in the second quarter, Diablo: Immortal, developed by NetEase for the global market, quickly topped the charts in more than 100 countries and regions after its release, and the cumulative number of players worldwide exceeded 30 million. In June this year, the sales of "Forever" exceeded 10 million, breaking the sales record of a domestic buyout game. The Xbox version has been released, and the new users exceeded 1 million within two weeks of its launch. Nearly a year after its launch, the space-themed mobile game Endless Lagrange has returned to the top of the free list of domestic iOS games, and has been well received by users around the world.
When asked about the next overseas plan, NetEase executives said on the call that NetEase will carry out differentiated operations according to the different cultural backgrounds, gaming habits and consumption habits of global users, so as to provide high-quality game experience for global players. Diablo: Immortal, as a mobile MMORPG, will continue to operate globally for a long time, with innovative content iteration to attract more users. Eternity is scheduled for a PS5 release late this year or early next year.
Long-term confidence in the music circuit wants to be the best promoter of musicians
On the earnings call, investors asked management about the future of the online music market. Ding Lei, CEO of NetEase, said that NetEase has long-term confidence in the music circuit, and will not pay too much attention to short-term data, but focus more on how to impress every young person with high-quality music. Because young people will always need music. NetEase Cloud Concert has accompanied countless young people from campus to society, and has become one of the indispensable music platforms in Chinese young people's life. "That's what makes music different from novels and movies. It's a kind of accompanying, empathic content." "Ding Lei said.
As for the future growth trend of active users of NetEase Cloud Music, Ding said that NetEase Cloud Music captures the youngest group in China. These people love music, listen to more than 80 minutes a day, listen to diverse songs, and are willing to pay for music. NetEase Cloud Music is very willing to provide these young users with more quality services, and grow together with them. < /p>Net revenue of NetEase Cloud Music in the quarter was 2.2 billion yuan, up 30% year on year; Gross margin improved significantly year on year to 13%; The payment rate of online music service increased significantly to 21%, continuing to lead the industry; The platform has more than 529,000 independent musicians. Ding Lei said on the earnings call that NetEase Cloud Music will continue to provide good tools and platforms for independent musicians, and focus on how to help Chinese independent musicians create better works and gain more financial returns. In the future, NetEase Cloud Music hopes to become the best platform, helper and promoter for independent musicians.
