In January 2024, NetEase Cloud** changed slogan back to the 2013 version - "Discover good**" On January 9, NetEase Cloud** apologized to a large number of unrelated problems in the past through an open letter to users, and made a series of revisions to the recommendation interface, my page, community, etc., such as simplifying the community, deleting advertising space, etc., the main purpose is to return** and do subtraction.
In April 2013, NetEase Cloud** was launched. As a late-developing online platform, the community has helped NetEase Cloud to get out of the circle many times, and the resulting "network suppression of clouds" has become an online joke, and the copyright issue at the core of the platform has been complained by users. In terms of performance, NetEase Cloud** divides revenue into two segments: *** services, social entertainment services and others, and the revenue contribution is basically 55%. In the first half of 2023, NetEase Cloud**'s revenue decreased by 8 percent year-on-year2%, and revenue in the third quarter fell 163%, failing to continue the previous year-on-year trend. Whether the revision will boost revenue, and how long it will be reflected in performance, time will know the answer.
Admit mistakes and correct them
No amount of explanation will help" "It is more important to change when you know your mistakes than to apologize", NetEase Cloud** said in the "Confession Letter from the Revision Project Team",This is the consensus of the entire team,So NetEase Cloud** decided to promote the largest revision in history。
A reporter from Beijing Business Daily upgraded the NetEase Cloud **app to the latest version and found that the Discovery, Podcast, My, Follow, and Community tabs at the bottom of the homepage of the old version have become Recommended, Discovery, Roaming, Dynamic, and My, with a more refreshing design. Song lists, style daily pushes, etc. are attributed to the recommendation tab, and it is found that in the tab, there are song lists, charts, podcast programs, etc. selected by Yuncun editors. The vinyl** page removes functions that have nothing to do with listening to songs, such as live broadcasts;**Status can show songs**, devices, and more.
It's not hard to spot the adjustment of the ad placement. In the new version, the original advertisements and events have been reserved for daily push songs and recommended playlists, and content such as events has been placed below the recommended playlists. However, NetEase Cloud** did not disclose which positions of advertisements were also deleted.
According to the official statement, the Yuncun community dynamic page has been comprehensively simplified, deepening the experience of "music review is community". A reporter from Beijing Business Daily compared the old and new versions and found that the original community was renamed "dynamic", and the page was reduced from the square and the song room to the attention and square. "Cut off some branches and vines that you (users) don't like, hand over the cloud, and return the cloud to you (users)", NetEase Cloud said.
Users have mixed reviews, "It's the same as not changing, the homepage is still so dazzling when it opens, you should give the choice to the user, the homepage supports customization, and the bottom allows users to keep it on demand", one user commented. also had a satisfied voice, "After the change, it was much more concise and clear, and it turned out that I accidentally clicked into the live broadcast, and I was a little speechless." It's comfortable now."
One of the most liked comments under the relevant hot search on social platforms is "Shouldn't it be too little copyright that is criticized by users"?Similar complaints have long appeared, but whenever NetEase Cloud** is on the hot search, you can always hear it, even if NetEase Cloud** officially announces new copyright cooperation from time to time, when releasing the financial report for the third quarter of 2023, NetEase Cloud** announced that it has reached copyright cooperation with Bai Mifan, Li Yuchun, "Summer of the Band", etc. this quarter. What users did not emphasize is that NetEase Cloud** changed the brand slogan back to the 2013 version - "Discover Good**".
Interestingly, Amway's new version of DingTalk on the same day used the same word "bloated" as NetEase Cloud**. "I think it's not a coincidence, it's a trend, and we want to make products that return to the original intention," Wang Chao, founder of Wenyuan Think Tank, told Beijing Business Daily, "Enterprises understand what a good product is, but when the capital market is active, many functions assume the function of storytelling and strive for capital." Now the competition is fierce, the liquidity of the capital market is weak, and the product must return to the path of user first."
There is a view that in addition to bloated products and copyright issues, NetEase Cloud also has high competitive pressure, and the profit model needs to be optimized.
Li Jinqing, an analyst at Bida, reminded a reporter from Beijing Business Daily that "NetEase Cloud is not turning off some functions, but putting their entrances deeper, strictly speaking, NetEase Cloud is not what it was in 2013, and it is impossible to return to its original appearance."
There are ups and downs
Another point is also worth paying attention to, these businesses that have been "rear-ended" by Netease Cloud** are basically the functions launched by NetEase Cloud** later, mostly related to social entertainment services, such as the above-mentioned **, song room. In this regard, NetEase Cloud** did not comment.
According to the financial report, in the first half of 2023, NetEase Cloud** revenue will be 390.8 billion yuan, down 82%, the revenue in the third quarter of 2023 will be 2 billion yuan, a year-on-year decrease of 163%。NetEase Cloud** revenue is divided into *** services, social entertainment services and other two segments. In the third quarter of 2023, NetEase Cloud** did not disclose the revenue of specific businesses, and the financial report for the first half of 2023 can be used to get a glimpse of the strengths and weaknesses of the two sectors.
In the first half of 2023, **service contributed 20revenue of 2.1 billion yuan, a year-on-year increase of 133%, social entertainment services and other revenues 188.7 billion yuan, a year-on-year decrease of 238%。There was also a turning point in adjusted net profit, which was 3$3.2 billion, compared with an adjusted net loss of $2.2 billion in the same period last year1.7 billion yuan.
Liang Zhenpeng, an industrial economic observer, told a reporter from Beijing Business Daily, "'Sinking' the entrance of the song room may have a certain impact on revenue, and the adjustment of prominent advertising space may also lead to a reduction in advertising revenue." The specific impact depends on the subsequent operational strategy."
It can be said that NetEase Cloud ** is a painful lesson this time, and it is a difficult choice to make in the time cycle of declining revenue", Li Jinqing concluded.
It's a bit stupid and angry, but it's just done", said the NetEase Cloud revision project team. Will you be worried about the impact on your bottom line when you make the above adjustments?As of press release by a reporter from Beijing Business Daily, NetEase Cloud** did not respond.
Beijing Business Daily reporter Wei Wei.