User Scale and Utilization Ratio of Online Music/Mobile Online Music Dec. 2015 – Dec. 2016 10,000 persons 60000 72.8% 68.8% 80% 50000 50137 67.3% 67.2% 50313 46791 60% 40000 41640 30000 40% 20000 20% 10000 0 0% 2015.12 2016.12 Number of users of online music Number of users of mobile online music Usage rate of online music (by all Internet users) Usage rate of mobile online music (by all mobile Internet users) Source： Statistical Survey on Internet Development in China 2016.12 Figure 64 User Scale and Utilization Ratio of Online Music/Mobile Online Music Dec. 2015 – Dec. 2016 The online music market integration was basically completed in 2016. Online music users are shifting from PC end to mobile end, but the user scale as a whole sees no obvious growth. Meanwhile, benefiting from the enhancement of the industrial copyright awareness and improvement of users’ willingness to pay, the revenue of online music enters a high-speed growth period. Through consecutive acquisitions dating back to 2015, a four-way race has taken shape, where Tencent, Alibaba, Baidu and Netease Cloud Music have competed with each other. Exteriorly, these four online music groups consolidate copyright resources, which create profits and improve user experience while forming a sound mode for copyright transfer. Interiorly, the co-movement of online music and other online entertainment services such as online game and video is gradually smoother. With IP as its core, the approach of maximizing the value of fans through multiple services has grown more mature. The domestic online music has broad prospects for its revenue, lying in the following three reasons. First, favorable policies drive the sound development of the industry. At the end of 2015, the Opinions on Promoting the Development of the Music Industry in China was released, reiterating that “we must crack down upon the infringement of spreading music works without 78 authorization”. As the market gives higher priority to copyright, the cooperation cases of The 39th Statistical Report on Internet Development in China