Netease teleconference Abstract: do not worry about the impact of short video on music, and are ready for the meta universe

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On November 16, Netease announced its unaudited financial results for the third quarter of 2021. According to the financial report, the net income of Netease Q3 was 22.2 billion yuan, a year-on-year increase of 19%; Under non GAAP, the net profit attributable to the shareholders of the company is RMB 3.9 billion. [Netease’s revenue in the third quarter was 22.2 billion yuan, a year-on-year increase of 19%, and its share price rose by more than 6%]
Ding Lei, CEO of Netease, said: “in this quarter, Netease’s online game business achieved quite a lot in terms of diversification strategy. The flagship game performed strongly, and the new game was widely favored by enthusiastic players with its high-quality game design. In addition, Netease Youdao, Netease yunyinle and Netease strict selection also continued to maintain a diversified and differentiated product layout.”
After the financial report was released, Ding Lei and others attended the teleconference and answered analysts’ questions. The following is the summary of the teleconference:
Q: Recently, there are many short videos that have attracted some user duration or user growth of the music platform. I wonder if cloud music is worried about short videos? What else is there to ask tiktok about how to enter the music field? If so, what kind of threat is he expected to bring?
Ding Lei: in the short term, we do see that short videos and live video broadcasting will disperse users’ time. Short videos will not only affect music, but also affect the dispersion of attention on games and other mobile phones. However, we believe that the biggest difference between music and video is that high-quality music content will make people’s emotions have a strong resonance and immersion. This is the biggest difference between music and video content. We rarely watch the video for the second time, but after listening to good music for the first time, we will want to listen to it for the second time and the third time, Even after a period of time, music will hover in your mind.
The second question, do you worry about making music on other platforms? This is an open market. We welcome any enterprise to come to the music market to help more musicians have better works to tap, cultivate and develop. We hold a welcome attitude.
Question: about overseas game strategy. Is there a so-called division of labor within you? For example, some domestic development teams may basically focus on developing projects with opportunities in both domestic and overseas markets, and then there are some key games in overseas markets, which are basically reserved for overseas teams?
The management replied: at present, the domestic development team generally focuses on the domestic market for games related to traditional culture and Chinese style.
In addition, we have invested a lot of efforts. We prefer to consider the games released worldwide first. A series of standards, from playing methods to world packaging, are loved by global players. We have a special team developing games like this. Such teams may be developed jointly with overseas teams, Overseas team and domestic team develop together.
The third category is the teams that are fully invested or completely overseas. They will independently develop games for the overseas market according to their tastes and preferences for overseas players. First, the overseas game design studio you mentioned just now, we also very much expect them to make unique works to global players.
Question: about metauniverse, this is a very hot concept recently. I also see that companies at home and abroad, including game companies, have expressed their intention to invest in metauniverse, so I would like to ask the management how to see the growth opportunities that metauniverse can bring to the game industry in the future, and then can you reveal how Netease plans to layout in metauniverse?
Ding Lei: the meta universe is indeed a very popular concept, but to be honest, no one has come into contact with the meta universe at present. One thing I can say for sure is that Netease is ready at all levels of technology and rules. How do we design rules and how do we reserve technology.
So you don’t have to worry. When the meta universe comes, we won’t be unprepared. We may run faster than anyone when the gun rings. I can only answer that.