On Monday, Reuters-owned media outlet IFR reported that NetEase Cloud Music has postponed its initial public offering (IPO) in Hong Kong after previously passing the listing hearing on August 1.
NetEase stated that the company’s management team decided to suspend the action after considering the current market environment and other comprehensive factors. In the future, it will choose a more opportune time to pursue IPO-related matters.
According to the 2020 China Online Music Industry Report released by Fastdata, China’s output value of online music exceeded 14 billion yuan ($2.16 billion) last year, and the number of paying users also surpassed 71.9 million.
NetEase Cloud Music’s current competitors include Tencent Music, which has recently been ordered by anti-monopoly regulators to waive its exclusive music licenses within a 30 day period, and various short video platforms that aim to enter the music industry.
In June this year, TikTok launched a music player and initiated internal testing for a “Karaoke Sing” function. The Bytedance-operated short video platform also launched a “Seeing Music” program, aimed at finding better original music creators and voices.
In March this year, competing platform Kuaishou held a music copyright ecology conference and launched the industry’s first music copyright settlement standard. In June, the firm kicked off the “Kuaishou Double-Click Music Program” to support original musicians by providing public domain traffic and copyright settlement.