Analysis Of Profit Model Of Digital Music Platform

With the advancement of technology and changes in music carriers,the digital music industry has developed rapidly.In 2018,digital music revenue accounted for more than half of total music revenue in 38 markets worldwide,reaching 58.9%,and its position in the global music industry has gradually become prominent.In the growth of digital music revenue,paid music streaming,that is,the music platform has become a major booster.In 2018,paid streaming media revenue accounted for 79.46% of digital music revenue.Although the influence of digital music platforms has continued to expand,the dilemma of loss faced by most platforms has not yet been well resolved.High copyright costs,single profit points,and rising marketing pressure have exerted huge pressure on the profitability of music platforms.However,in this industry enviroment,Tencent Music has achieved continuous profit,and it has also attracted wide attention due to its outstanding performance.Based on this background,the research question raised in this article is how Tencent Music achieves profit in the face of the industry's general profit dilemma? What's so special about Tencent Music's profit model compared with the general platform,how does the competition strategy and profit model adopted by the company improve the profitability of the enterprise,and what can Tencent Music's successful experience provide for other platforms?A review of the existing research shows that due to the late commercialization of the digital music industry,China 's research on the digital music industry has mainly focused on recent years,and its analysis and exploration of its profitability have been lacking in pertinence.The research conclusions are relatively general.The research on profit model lags behind the development of the Internet industry,and the attention on digital music platforms is still relatively limited.Therefore,this article adopts a case study method,based on a large amount of data collected from the digital music industry,analyzes in depth the special features of Tencent Music's profit model and methods to improve corporate profitability,and provides inspiration for other platforms.The research in this article finds that the successful profit of TME benefits from the innovation of profit model,the optimization of profitability and the formation of unique competitive advantages.From the perspective of the profit model,TME's profit point has increased compared with other companies.The unique social entertainment service has contributed greatly to the profit of the platform.The development of profit objects has achieved success.The paying ratio and monthly ARPPU is higher than the industry average level,and the large amount of exclusive copyrights has become an important profit barrier to avoid the encroachment of profits by competitors.At the aspect of optimizing profitability,TME has achieved revenue growth through multiple channels,and has penetrated into the upstream industry chain to reduce copyright costs.At the same time,the reasonable arrangement of operating activities has kept the main expenses as a percentage of revenue at a low level.In addition,TME's unique competitive advantage also contributed to the achievement of outstanding performance.Horizontal mergers and acquisitions have enabled TME to occupy a larger market share,and the significant synergy with Tencent has effectively increased the influence of the platform.The research significance of this article is to summarize its successful experience through the analysis of the main means of improving the profitability of TME,provide reference for the future development of other platforms in the same industry,and put forward development suggestions for broadening development ideas,innovating monetization models and building strategic alliances to help the sustainable and healthy development of the industry.