Analysis On The Profit Model Of Online Music Platforms

With the advancement of information technology,the Internet has become the carrier of content dissemination in the new era,and digital content has emerged as the times require.In this context,the dissemination and sharing methods of information have undergone tremendous changes,and the entertainment industry has received a huge impact.Music,as an important part of the entertainment industry,the main carrier of its dissemination has gradually changed from physical records to the Internet.Online music platform,as one of the important channels for music dissemination in the Internet era,its profit model has certain research value.However,domestic scholars’ research on the profit model of "online music platform" is still in the exploratory stage.There are fewer case studies.Tencent Music,known as the "leader" of China’s online music industry,as the first listed stock in the domestic online music industry,has been the first to achieve profitability since its listing on the New York Stock Exchange in 2018.However,in recent years,its operating income has the growth rate has slowed down,and the number of monthly active users has also shown a downward trend.Its cases are quite representative in the online music industry and have great research value.This thesis uses a research method that combines literature analysis and case analysis to investigate TME’s profit model,analyze the current problems of that profit model,and try to analyze its internal reasons.To provide references and references for the future development of the online music industry.Based on reading a number of related literature,this thesis first organizes research on profit models and online music platforms.Next,we will introduce the meaning and components of the profit model,summarize the components of the profit model of the online music platform industry,and clarify the relevant rationale.Next,by combining the development status of TME and the main business,a comprehensive analysis of TME’s profit objects,profit points,profit sources,profit levers,and profit barriers is performed according to the theory of profit model elements,and the profit model is calculated.It has been researched and investigated.Cause and solution.TME’s revenue sources are mainly advertising revenue,user payment revenue,copyright distribution revenue,live broadcast fall revenue,and other value-added service revenue,of which live streaming fall revenue belonging to social entertainment services is the core profit point.is.As a result of analyzing the operational status of TME,we believe that the main issues of TME are as follows.(1)The increase in the number of paying users has slowed and the cost of content continues to rise;(2)Revenue sources are too dependent on social entertainment services and their risk capacity is insufficient;(3)Currently Social entertainment services as a core business of TME face certain policy oversight risks;(4)TME "Hori"-exclusive copyright is a national antitrust policy.In response to the above problems,this thesis puts forward suggestions for improving TME’s profit model,including:(1)Pay attention to the acquisition of core resources,and at the same time increase support for high-quality original content.In order to achieve the purpose of controlling costs and attracting users;(2)Promote the diversification of profit models,seek new profit points,and reduce the proportion of social entertainment service revenue in total revenue;(3)Strengthen the supervision of user-generated content and actively develop artificial intelligence Add new technology(4)Optimize the content ecology of the community and improve the user experience to form a new "moat".Finally,I hope that these proposals can provide a reference to improve TME’s profit model and promote the healthy development of China’s online music industry.