Is the Metaverse that QQ Music wants to do, a VR version of Qzone?

The reason why Tencent Music mentioned the Metaverse in the earnings call may not be complicated.

In the past year, the word Metaverse is undoubtedly the most popular word in the global Internet industry. People from all walks of life have used this concept to draw cakes to investors, and they have also blown one beautiful bubble after another. Until Meta, the standard bearer of the Metaverse, plummeted by hundreds of billions of dollars after the release of its earnings report in February, and the stock price of Robolx, the “first stock of the Metaverse”, has been halved since the beginning of January, the word obviously began to cool down.

Is the Metaverse that QQ Music wants to do, a VR version of Qzone?

But not everyone has given up on the popularity of rubbing the Metaverse. In the recent earnings conference call of Tencent Music Entertainment Group (hereinafter referred to as “Tencent Music”), CEO Liang Zhu revealed future business plans. Among them, he mentioned that it is possible to explore the Metaverse in the QQ Music APP. Each user will have his own independent room, and he can put his own music in the virtual room, and friends can listen to the music when they come to visit.

Not only QQ, but even QQ Music is going to engage in the Metaverse. QQ can become the Metaverse, relying on the virtual avatar ability brought by the upgraded version of QQ Show “Super QQ Show”, and how does QQ Music as a music streaming media realize the Metaverse? According to Liang Zhu, users of QQ Music can have a virtual room and related virtual images, and the interaction mainly depends on the “visit” of other users.

Is the Metaverse that QQ Music wants to do, a VR version of Qzone?

Seeing these descriptions, I believe that many old QQ users will have a strong sense of sight. Isn’t this the VR version of QQ space? It’s just that what QQ space showed to friends back then was the literature of youth pain that hurt the spring and autumn, and the Metaverse depicted by QQ music showed the user’s own music taste. However, this vision has already been realized in QQ Music, and the function of accessing friends’ playlists has been launched very early.

It seems that the so-called Metaverse of QQ Music is almost “reproducing the wheel”, and the VRization of existing functions does not seem to be “Metaverse”, and it has a sense of sight that rubs against the heat.

So why is Tencent Music worthy of the popularity of the Metaverse? Perhaps the answer to this question is in their just-announced earnings report. Tencent Music’s revenue in 2021 will be 31.24 billion yuan, an increase of 7.2% from 29.153 billion yuan in the same period last year, and the scale of paying users has reached a new high. The online music payment rate rose from 9% in the same period last year to 12.4%.

However, in the fourth quarter of 2021, Tencent Music’s revenue was 7.61 billion yuan, down 8.7% year-on-year, net profit attributable to the company’s shareholders recorded 536 million yuan, down 55% year-on-year, and online music business MAU fell 1.1% year-on-year , the social entertainment business MAU decreased by 21.5% year-on-year. In this financial report, core indicators such as quarterly revenue, profit, and user scale are all declining, which is undoubtedly a bad signal.

The executives of Tencent Music explained in the earnings conference call that the main reason for the year-on-year decline in users in the fourth quarter was the loss of light users to other pan-entertainment platforms.

In fact, since Tencent Music was released from its exclusive copyright last summer, it has lost its most important moat, and short video platforms such as Douyin and Kuaishou have joined the battle in the music streaming market to develop music-related businesses. For example, Kuaishou launched the K song app Huihui Sen, the music community product Komori Sing, and ByteDance launched the music product Soda Music. Originally, short video platforms have taken up a lot of users’ time, but after they have acquired more content, users can now not only watch videos on short video platforms, but also listen to songs on Douyin or Kuaishou more and more. .

Is the Metaverse that QQ Music wants to do, a VR version of Qzone?

What’s more deadly is that when the regulatory authorities rectified the rice circle, Tencent Music’s model of relying on fans to buy digital albums in large numbers was cut off. Under such circumstances, Tencent Music chose to “make miracles vigorously”, trying to increase the user payment rate through promotions. In the fourth quarter of 2021, when the number of its online music paying users increased by 36.1%, paid membership revenue only increased by 23.5%, and the online music business ARPPU decreased by 9.6% year-on-year to 8.5 yuan.

As for why the Metaverse is mentioned, the outside world thinks that this may be Tencent Music’s operation to rebuild the moat from the backed Tencent ecology. In fact, Tencent Music has launched the TMELAND New Year’s Eve Music Festival on QQ Music, which is held in the form of virtual live broadcast and virtual concert. Electronic music producer Anti-General, the world’s top 100 DJs Luminn, DEXTER KING, and internationally renowned DJ Vicetone, etc. Musicians, all performed at this event.

Is the Metaverse that QQ Music wants to do, a VR version of Qzone?

At present, offline concerts are basically difficult to hold, but consumer demand has always existed, so virtual concerts have undoubtedly become a way to obtain traffic. For the current Tencent Music, after losing the exclusive copyright, the short video platform has taken away a lot of traffic that originally belonged to it. Now it is a story that it tells the capital market to use the Metaverse to reduce the loss. Users who have come to Douyin and Kuaishou have been attracted again, such as watching concerts in the virtual world and singing with friends with the help of AR/VR technology, which may be very imaginative businesses.

But if Tencent Music’s Metaverse strategy is to succeed, it will undoubtedly need to be combined with Tencent. Tencent has strong advantages in cloud services and other basic technologies for building the Metaverse, as well as games, movies and other filling Metaverse content, which can fully allow Tencent Music to exist as a part of Tencent’s Metaverse strategy.

Is the Metaverse that QQ Music wants to do, a VR version of Qzone?

Of course, no matter which Internet giant it is today, the Metaverse is still in the exploration stage. Before VR technology, communication technology and hardware performance have achieved substantial breakthroughs, the term Metaverse may be more for the capital market. of a story.

[The picture in this article comes from the Internet] 

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