NetEase Cloud Music

NetEase, headquartered in Beijing, China is owned by NetEase, Inc., a publicly-traded technology company listed on NASDAQ and the Hong Kong Stock Exchange with a market capitalisation of over US$90bn. NetEase Inc. provides multi-platform games, media, email and e-commerce services.

NetEase covers content distribution to:

• NetEase Cloud Music (http://music.163.com/) (“NCM Service”), a music and video streaming service operated by NetEase. The NCM Service was launched in mainland China in April 2013 and as of May 2020 had over 800 million registered users.
• Yin Jie is a karaoke streaming service that launched in March 2020 (“Yin Jie Service”).

NetEase Cloud Music

The NCM Service offers the following tiers:

1. Ad-Supported Service:

   • An on-demand, free to end-user, advertising-supported, music streaming service available on all devices.

   • No tethered download (i.e. ‘offline mode”) functionality.

   • The low audio quality of 128 kbps.

2. Basic Subscription Service:
   

   • An on-demand, music streaming subscription service available on all devices.

   • Includes tethered downloads (i.e. ‘offline mode”) for up to 300 songs.

   • The standard audio quality of 320 kbps.

3. Premium Subscription Service:

   • Same functionality as the Basic Subscription Service except includes tethered downloads (i.e. ‘offline mode”) for up to 500 songs.

   • Provides subscribers with access to purchase live concert tickets.

4. VIP Subscription Service:

   • Same functionality as the Basic Subscription Service.

   • Provides subscribers with access to paid product discounts and coupons, access to purchase live concert tickets, radio programs (which are not licensed under our Agreement), lyrics with customisable backgrounds, and customisable skins and music player features.

Yin Jie Service

The Yin Jie Service is an on-demand, ad-supported, free to the end-user karaoke service that offers the following functionality:

• Enables users to sing along and/or record their own vocals over a master recording (either together with the original vocals (as a “duet”) or with the original vocals digitally removed) (“UGC Covers”) and to post the UGC Covers to the Yin Jie Service platform.
• On-demand service is available on all devices.
• No tethered download (i.e. 'offline mode") functionality.
• The low audio quality of 128 kbps.