A Report on Netease Cloud Music Business

Abstract

The report has analyzed the NetEase Cloud music business narrowing down to the business model of the Company, the customers’ preferences, the external factors such as the competition that is impacting business operations of the company, and future recommendations for the effective performance of the Company. Throughout the study, the paper relied on a qualitative research method to analyze the published content on various sources on the internet. The also implemented the use of an experimental design that necessitated the researcher to effectively analyze the data and reach out to the conclusions. The paper found out that despite the platform giving free music to its customers, other music genres may be difficult to be accessed by customers until they subscribe to premium services. This could be a discouraging factor because other platforms offering the same services could use it as a merit to compete NetEase and take away some of its customers. The paper recommended that the platform should improve the quality of freemium users’ music to help receive many users annually. In line with this, the rate of premium users on the platform should be reduced in favor of the customers. When the platform receives many song listeners daily, I will be able to generate more revenue through other business opportunities like advertisements and selling of the music products. For instance, customers may use the platform to sell and buy music products like headsets, CDs, music notebooks, musical instruments among others. Advertisements form the basis of huge revenue generation because when users access the site the first image will be the background of NetEase which will keep altering automatically to display other products being advertised.