Chinese media, gaming and technology conglomerate NetEase filed paperwork Wednesday (May 26) announcing its intention to spin off its Cloud Village wing -- which houses its music streaming service, NetEase Cloud Music -- in an initial public offering on the Hong Kong Stock Exchange. If the proposal goes through, NetEase intends to maintain more than 50% of the voting rights in the resulting company, meaning that Cloud Village will remain a NetEase subsidiary moving forward.
NetEase Cloud Music is a major competitor to Tencent’s various streaming services in China, and claims more than 180 million monthly active users and 16 million paid subscribers as of the end of 2020, according to the company. A Bloomberg report on the proposal suggests that NetEase could raise $1 billion with the IPO.
The timing of the proposal comes at a significant juncture for NetEase, which is expecting its music streaming service to "undergo relatively rapid business expansion" moving forward. Earlier this month, NetEase signed a first-ever digital distribution deal with Sony Music, following a similar deal with Universal Music, expanding its catalog significantly at a time when Tencent, its biggest rival, is facing regulatory scrutiny in China over its market dominance and exclusive deals with artists and labels. Reports suggest that regulators could force TME to offload two of its music streaming services and pay a hefty fine. Tencent’s music services claimed 615 million active users in the first quarter of 2021 and 61 million paying users, according to its financial filings.
The NetEase announcement also arrives at a time of significant growth in the Chinese music market. Streaming in the country, which is the seventh-largest music market in the world, grew 34% to $718.1 million in 2020, according to the IFPI. Globally, streaming revenues grew 19.9% in 2020 over the year before, according to the IFPI, reaching $13.4 billion and accounting for 62.1% of total revenue for the global recorded-music business.
Further details of the spinoff, including the number of shares and the price at which it would be offered, have yet to be finalized.
NEWS
Lorde returned to Governor’s Ball for the first time in nine years and gave fans a unique take on her collaboration with Charli XCX, ‘Girl, So Confusing’.
The New Zealand singer made her long awaited comeback to the New York festival on Friday (June 5), where she headlined the opening night.
Speaking to the crowd about stepping back onto the Governor’s Ball stage after almost a decade away, Lorde admitted it was “the most nervous I’ve been for a show in a while”. She then treated fans to a string of beloved tracks including ‘Royals’, ‘What Was That’, and ‘Hammer’.
One of the standout highlights of the evening arrived near the end of her 21 song performance when she performed ‘Girl, So Confusing’, the track she later reworked alongside Charli XCX.
The song first appeared on Charli XCX’s hugely successful 2024 album ‘Brat’ without Lorde’s involvement, though it was inspired by her. In the lyrics, Charli reflected on the complicated feelings between the two artists and revealed she had once felt “super jealous” of the New Zealander’s achievements during her early career.
The pair later teamed up for a remix after Charli shared the song’s meaning with Lorde ahead of the release of ‘Brat’. Following that conversation, Lorde proposed creating a collaborative version together.
At Governor’s Ball, Lorde performed the remix adaptation during the closing section of her set and added her own personal touch to the track.
Charli was not present for the performance, leaving Lorde to deliver the song on her own. The moment stood out even more because the track had only appeared sparingly throughout Lorde’s recent ‘Ultrasound’ tour. More footage from the show can be seen below.
In addition to revisiting fan favourites and reimagining ‘Girl, So Confusing’, Lorde also surprised the audience with a preview of brand new material.
Early in the set, she introduced a portion of an unreleased song from the side of the stage. Standing behind a synthesizer setup, she sang: “Don’t look for me now that I’m gone/ Don’t look for me, I’m gone.”
Lorde’s festival appearances this summer follow her recent ‘Ultrasound’ tour, which was launched in support of her newest album, ‘Virgin’.
Released last June, the record earned a four star review from NME, which stated: “‘Virgin’ is a vibrant combination of Lorde’s best qualities, and then some.”
“With her newfound candour, the record combines the emotional whirlwind of ‘Melodrama’, the chilling minimalism of ‘Pure Heroine’ and the breezy freedom of ‘Solar Power’,” it added. “This might be called ‘Virgin’, but Lorde proves she’s not afraid to strip herself bare.”
While ‘Girl, So Confusing’ was not a regular feature during the ‘Ultrasound’ tour, Lorde did perform it at the Kia Forum in Los Angeles last October, where she surprised fans by bringing Charli XCX on stage.
Since releasing ‘Virgin’ and launching the accompanying tour, Lorde has contributed more than $200,000 from merchandise sales to Minnesota immigrant funds. She has also been announced as a headliner for All Points East 2026 in London, where PinkPantheress, Zara Larsson and additional artists are also set to appear.
