Group Discussion Week 3 Group 4

Group 4

Shi Congshuang

Tan Xiangling

Liu Xinyi

Zhu Jiaqi

Niu Yunyi

Wang Xin

 

NetEase Cloud Music&Youku

 

What is the partnership about?

NetEase Cloud Music&Youku

Music streaming platform and video streaming platform .

The partnership between NetEase music and Youku first lies in their membership. By subscribing yearly or monthly services of NetEase music, users can not only enjoy VIP-only songs and music on NetEase, but also become VIP customers of Youku for a certain period of time.

What’s more, Youku gives license to NetEase music by allowing it to be the only online music streaming platform to play soundtracks and songs of TV series and other video productions streamed only on Youku.

 

What are the strengths or weakness from both sides？

NetEase Cloud Music：

strengths：

1. Strong user identification

2. With social function.

3.Experience and resources in music field operation.

4.Have huge users

weakness：

1.Music copyright is not enough

2.With strong competitors

 

Youku：

strengths：

Quality resources are plentiful, such as some old TV series like 甄嬛传

weakness：

1.Insufficient attraction to new users and active users

2.With strong competitors

 

How are they compatible with each other?

They both have large numbers of users and serve users with basically the same characteristics.

 

What are the new values created?

1. It allows users to enjoy the membership benefits of both platforms at a lower price. This service usually offers a better price than buying memberships for each platform separately.

2. Through common membership packages, NetEase Cloud Music can attract Youku users, while Youku can attract NetEase Cloud Music listeners, expanding their respective user bases.

 

What could be the risk for both/either side(s)?

1.The co-branding strategy will increase the overall operating costs of both parties, but it may not necessarily bring equal benefits.

2.The distribution of membership fees can be challenging.

3.The co-branding may not bring equal user growth to both sides. The quality, activity level, and willingness to spend of the attracted users might differ, which could impact the long-term development of this co-branding.

4.There are competition relationships among one platform’s multiple partners. NetEase Cloud Music has partnerships with two online video platforms, Youku and Tencent.

5.Sharing platform reputation and user experience adds risks to both platforms. If one platform has low user satisfaction, it can reduce renewal rates for both platforms.