NetEase Cloud Music hit over $250 million profit in H1 2025 despite revenue dip
Streaming and subscription power NetEase Cloud Music to big gains, even as overall revenue slides.
Cloud Music’s H1 2025 performance
NetEase Cloud Music has dropped its H1 2025 results, posting a net profit of CNY 1.88 billion (around 253.0 million). That’s a 130% jump from the first half of 2024. That’s not bad, especially considering overall revenue actually fell by about 6% year-over-year.
A look at the numbers
The boost mainly comes from stronger performance in streaming and subscription revenues, even as social revenue fell. Here are the numbers that matter, per DMN:
- Streaming revenue: CNY 3 billion ($421.7 million) – up 15.9% YoY
- Subscription revenue: CNY 2.5 billion ($351.4 million) – up 19% YoY
- Social entertainment revenue: CNY 859.8 million ($120.8 million) – down 43% YoY
- Total revenue: CNY 3.8 billion ($534.2 million) – down 6% YoY
- Net profit: CNY 1.88 billion ($253.0 million) – up 130% YoY
The big drop in social entertainment revenue seems to be intentional too. Cloud Music says it shifted focus away from the social side in order to double down on its core music business. That move appears to be paying off too.
So, while total revenue dipped, Cloud Music still walked away with big profits thanks to its core streaming business.
What’s driving the numbers?
Part of Cloud Music’s momentum comes from leaning hard into new features and AI-focused innovation. The company has been:
- Rolling out AI tools like its “AI Singing Assistant” and “AI Magic Player”, which lets users turn their photos into custom player backgrounds.
- Improving recommendations, playlists, and layout for a smoother experience.
- Focusing more on “superfan” experiences to keep top users even more engaged.
By prioritising its music-first strategy, Cloud Music is strengthening its offering for subscribers. This makes paid streaming a reliable source of revenue, despite falling revenues elsewhere.
With China’s streaming market continuing to expand, Cloud Music’s results highlight how focusing on core music services that fans enjoy can deliver big wins.