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Cloud Music Profit More Than Doubled in 2024 on Subscription Gains
Cloud Music’s revenue from subscriptions grew 22.2% year over year, helping profit increase 113% to $233.4 million on a 1% increase in revenue.
The company cited “the rollout of enhanced membership benefits” for the “rapid growth in our subscription-based memberships, further driving robust revenue growth in our core online music business and profitability.” The premium offerings were enhanced with an expanded catalog (including K-pop labels JYP Entertainment and Kakao Entertainment), improved personalized recommendations, “innovative” features and the fostering of a “stronger sense of community,” according to the earnings release. Improving the user experience and content offerings led to gains in subscriber retention rates, time spent listening and a better gross margin, which jumped to 33.7% from 26.7% in 2023. A one-time adjustment of some content licensing fees increased gross profit margin by approximately 1.3 percentage points.
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