T. H. CAPITAL, LLC T. H. Data Flash – China’s Mobile February 24, 2015 Music Market - January 2015 Kugou Leads the Mobile Music Market; Tencent and Baidu Ranked #4 and #7, Respectively Companies Mentioned: January 2015 Data Highlights: Kugou Technology (Private) Kugou Technology is the leading player with about 27% market share. Kugou Technology hits the #1 position with its major product, Kugou Music (酷 Kuwoo Technology (Private) 狗音乐). Kuwoo Technology (北京酷我科技有限公司) followed Kugou with a 13% market share, and is well known for its app, Kuwoo Music (酷我音乐). Tencent Himalaya Network (Private) and Baidu took the positions of #4 and #7, respectively, according to our proprietary data. Baidu’s leading position was mainly attributable to its acquisition of TTPlayer ( 千 千 静 听 ). The mobile music industry is mainly Alibaba Group Holding Limited comprised of three sectors, music player, music radio and Karaoke (Figure 1 & (BABA, $85.47, Not Rated) Figure 2). Music Player sector accounts for majority at about 84% of the whole Baidu Inc. (BIDU, $206.43, Hold) mobile music market, with similar competitive landscape of the whole market. Kugou, Kuwoo and Shanghai Shuishidu lead the market with market shares of 32%, 16% and 15%, respectively, ahead of Tencent (12%), Tencent Holding Ltd. (700-HK, Caiyunzaixian (10%) and Baidu (4%) (Figure 3). HK$135.10, Not Rated) Music Radio: Shanghai Maikefeng Media (上海麦克风文化传媒有限公司, known for Qingting FM (蜻蜓 FM), and Himalaya Network (上海喜马拉雅网 络科技有限公司), known for Ximalayaiting (喜马拉雅) took the leadership. Data in this report is extracted from Most of the radio apps provide comprehensive content besides music, such as fiction, news, talk shows, jokes and other forms of entertainment (Figure 4). publicly available sources and processed with our proprietary methodology. Karaoke: Changba (唱吧) dominates this sector with 57% market share. The second player, Tlkg.com.cn (北京天籁传音数字技术有限公司), only held 10% market share with its app, Karaoke Talent (天籁 K 歌) (Figure 5). www.thcapital-china.com www.thdata.com Figure 1: Market share of mobile Music by download by company China Baidu, 4% Telemcom, 2% Kuzhi, 4% Kugou Tian X. Hou Caiyunzaixi Technology +86 10 8568 0989 an , 27% [email protected] Technology , 8% Tencent, Quentin Luo 10% Kuwoo Shuidushi +86 10 8567 0787 Technology Technology [email protected] , 13% , 13% Gina Chen (646) 389-8528 [email protected] Source: T.H. DATA (www.thdata.com) T. H. Capital, LLC 5E, Tower D, Central International Trade Center 6 Jianguomenwai Avenue, Beijing 100022, China Please see end of this report for full disclosures T. H. CAPITAL, LLC February 24, 2015 Figure 2: Market share of mobile music vendors by company, 1/28/2015* China Kuzhi, 4% Baidu, Company Download Telecom, No. Ticker Total Downloads 4% English Chinese Share % 2% Caiyunzai 1 Kugou Technology 广州酷狗科技计算机有限公司 Private 2,370,755,253 27% xian Kugou 2 Kuwoo Technology 北京酷我科技有限公司 Private 1,166,958,683 13% Technolo Technolo 3 Shuidushi Technology 上海水渡石信息技术有限公司 Private 1,136,344,476 13% gy, 27% gy, 8% 4 Tencent 腾讯 700-HK 878,232,671 10% 5 Caiyunzaixian Technology 北京彩云在线技术开发有限公司 Private 729,818,680 8% Tencent, Kuwoo 北京酷智科技有限公司 10% 6 Kuzhi Private 341,575,953 4% Technolo 7 Baidu 百度 BIDU 319,088,779 4% gy, 13% Shuidushi 8 China Telemcom 中国电信 Private 184,191,365 2% Technolo 9 Xiami.com 杭州缪斯客网络科技有限公司 Private 163,026,218 2% gy, 13% 10 China Mobile 中国移动无线音乐基地 Private 145,126,901 2% Others 1,359,481,667 15% Total 8,794,600,646 100% *Our data comes from 13 major Android app stores in China, including Qihoo, Anzhi, Baidu, Mu Ma Yi, Nduoa, Tencent, Android market (91 Wireless), Eoemarket, Lenovo ,Appchina, Hiapk, Sina and Wan Dou Jia Source: T. H. DATA (www.thdata.com) Figure 3: Market share of mobile music player vendors by download, 1/28/2015 China Xiami.co Baidu, 4% Telemco m, 2% Company Download Ticker Total Downloads Caiyunzai m, 2% English Chinese Share % xian Kugou Technology 广州酷狗科技计算机有限公司 Private 2,370,755,253 32% Kugou Technolo Kuwoo Technology 北京酷我科技有限公司 Private 1,166,958,683 16% gy, 10% Technolo gy, 32% Shuidushi Technology 上海水渡石信息技术有限公司 Private 1,136,344,476 15% Tencent 腾讯 700-HK 878,232,671 12% Tencent, 北京彩云在线技术开发有限公司 12% Caiyunzaixian Technology Private 729,818,680 10% Baidu 百度 BIDU 319,088,779 4% China Telemcom 中国电信 941-HK 184,191,365 2% Shuidushi Kuwoo Xiami.com 杭州缪斯客网络科技有限公司 728-HK 163,026,218 2% Technolo Technolo 中国移动无线音乐基地 gy, 15% gy, 16% China Mobile Private 145,126,901 2% NetEase 网易公司 Private 79,851,128 1% Others 其他 N/A 243,407,480 3% Total 7,416,801,634 100% Note: 1.Data of Baidu includes Qianqianjingting(千千静听) that happened before acquisition. 2. Its major product is Xiami Music(虾米音乐), which is acquired by Alibaba in Jan. 2013. Source: T. H. DATA (www.thdata.com) Figure 4: Market share of mobile music radio app vendors by download, 1/28/2015 TuneIn Shanghai Company Download Inc, 5.1% Lizhi, Ticker Total Downloads 5.0% Maikefen English Chinese Share % Jay.Chan g Media, Shanghai Maikefeng Media 上海麦克风文化传媒有限公司 Private 143,971,211 21.4% 21.4% , 5.5% Himalaya Network 上海证大喜马拉雅网络科技有限公司Private 111,735,508 16.6% AutoRadio 车语传媒集团 Private 86,104,981 12.8% Kuwoo Technology 北京酷我科技有限公司 Private 61,757,265 9.2% Himalaya Network, Chengdu Xinlingchuangxiang成都心灵创想网络技术有限公司 Private 53,487,985 7.9% 16.6% Jay.Chan JAY.Chan Private 36,902,512 5.5% AutoRadi Chengdu TuneIn Inc TuneIn Inc Private 34,198,551 5.1% Xinlingch o, 12.8% Lizhi 广州荔支网络技术有限公司 Private 33,576,614 5.0% uangxian 西安多听网络科技有限公司 g, 7.9% Xi'an Duotin Technology Private 28,007,165 4.2% Kuwoo iFeng 凤凰网 Feng 26,139,523 3.9% Technolo Others 其他 N/A 57,298,175 8.5% gy, 9.2% Total 673,179,490 100.0% Source: T. H. DATA (www.thdata.com) 2 of 6 CHINA INVESTMENT RESEARCH & ADVISORY T. H. CAPITAL, LLC February 24, 2015 Figure 5: Market share of mobile karaoke app vendors by download, 1/28/2015 Kuwoo China Thunder. Technolo Mobile, com.cn, gy, 3% 2% Company Download 3% Ticker Total Downloads Keruida English Chinese Share % Technolo aichang.c Changba.com 北京酷智科技有限公司 Private 341,575,953 57% gy, 7% om, 6% Tlkg.com.cn 北京天籁传音数字技术有限公司 Private 61,646,332 10% Melot Technology 杭州米络科技有限公司 Private 44,916,256 7% Changba. Keruida Technology 可瑞达(天津)技术咨询有限公司 Private 44,235,258 7% com, 57% aichang.com 北京众智创世科技有限公司 Private 37,984,347 6% Thunder.com.cn 北京雷石天地电子技术有限公司 Private 17,319,208 3% Kuwoo Technology 北京酷我科技有限公司 Private 15,547,730 3% Melot China Mobile 中国移动无线音乐基地 Private 13,126,918 2% Technolo Tencent 腾讯 Private 9,059,066 2% gy, 7% Tlkg.com. Dashengyouwei Technology 北京大声有乐技术有限公司 Private 4,310,426 1% cn, 10% Others 其他 N/A 10,683,221 2% Total 600,404,715 100% Source: T. H. DATA (www.thdata.com) Figure 6: Market share of mobile music apps by cumulative download, 1/28/2015 APP Download Company No. Total Downloads1 Ticker English Chinese Share % English Chinese 1 KuGou Music 酷狗音乐 2,370,755,253 26.944% Kugou Technology 广州酷狗科技计算机有限公司 Private 2 Kuwoo Music 酷我音乐 1,166,958,683 13.263% Kuwoo Technology 北京酷我科技有限公司 Private 3 TTPOD 天天动听 1,136,344,476 12.915% Shuidushi Technology 上海水渡石信息技术有限公司 Private 4 QQ Music QQ音乐 878,232,671 9.981% Tencent 腾讯 700-HK 5 Duomi Music 多米音乐 729,818,680 8.295% Caiyunzaixian Technology 北京彩云在线技术开发有限公司 Private 6 Changba 唱吧 341,575,953 3.882% Changba.com 北京酷智科技有限公司 Private 7 Baidu Music 百度音乐 319,088,779 3.627% Baidu 百度 BIDU 8 imusic 爱音乐 184,191,365 2.093% China Telemcom 中国电信 728-HK 9 Xiami Music 虾米音乐 163,026,218 1.853% Xiami.com 杭州缪斯客网络科技有限公司 Private 10 Migu music 咪咕音乐 145,126,901 1.649% China Mobile 中国移动无线音乐基地 941-HK 11 Qingting FM 蜻蜓FM 143,971,211 1.636% Shanghai Maikefeng Media 上海麦克风文化传媒有限公司 Private 12 Ximalaya.iting 喜马拉雅 111,735,508 1.270% Himalaya Network 上海证大喜马拉雅网络科技有限公司 Private 13 Koala FM 考拉FM 86,104,981 0.979% AutoRadio 车语传媒集团 Private 14 Netease cloud music 网易云音乐 79,851,128 0.908% NetEase 网易公司 NTES 15 Kuwo Radio 酷我听书 61,757,265 0.702% Kuwoo Technology 北京酷我科技有限公司 Private 16 Tian Lai Sing 天籁K歌 61,646,332 0.701% Tlkg.com.cn 北京天籁传音数字技术有限公司 Private 17 iting360 爱听360 53,487,985 0.608% AudibleBook 成都心灵创想网络技术有限公司 Private 18 Baidu Music 百度音乐(千千静听) 47,985,863 0.545% Baidu 百度 BIDU 19 Google Play Music 谷歌音乐播放器 46,722,900 0.531% Google Inc. Google Inc. GOOG 20 Yin Yue Tai 音悦台 45,152,895 0.513% Bbsee Technology 北京宽客网络技术有限公司 Private 21 KK Sing KK唱响 44,916,256 0.510% melottech 杭州米络科技有限公司 Private 22 Karaoke talent K歌达人 44,235,258 0.503% Keruida Technology 可瑞达(天津)技术咨询有限公司 Private 23 Google Music Search 谷歌音乐搜索 39,967,759 0.454% Google Inc. Google Inc. GOOG 24 Aichang 爱唱 37,984,347 0.432% aichang.com 北京众智创世科技有限公司 Private 25 Douban FM FM网络电台收音机 36,902,512 0.419% Douban 北京豆网科技有限公司 Private 26 TuneIn TuneIn电台 34,198,551 0.389% TuneIn Inc TuneIn Inc Private 27 Lizhi 荔枝FM 33,576,614 0.382% Lizhi 广州荔支网络技术有限公司 Private 28 Duoting FM 多听FM 28,007,165 0.318% Xi'an Duotin Technology 西安多听网络科技有限公司 Private 29 SoundHound 猎曲奇兵 27,571,671 0.313% SoundHound Inc. SoundHound Private 30 Niting music 你听音乐 27,286,508 0.310% Jiandanyidian Technology 北京简单一点信息技术有限公司 Private 31 Youting Radio 优听Radio 26,139,523 0.297% Anyradio.cn 优听无限传媒科技（北京）有限责任公司 Private 32 TrackID TrackID 25,574,100 0.291% Sony Sony SNE 33 Phenix FM 凤凰FM 25,327,543 0.288% iFeng 凤凰网 Feng 34 Mobile KTV 移动练歌房 17,319,208 0.197% Thunder.com.cn 北京雷石天地电子技术有限公司 Private 35 Kxting 开心听 16,219,256 0.184% Caiyunzaixian Technology 北京彩云在线技术开发有限公司 Private 36 Koowo Music 酷我K歌 15,547,730 0.177% Kuwoo Technology 北京酷我科技有限公司 Private 37 Kugou FM 酷狗FM收音机 15,394,286 0.175% Kugou Technology 广州酷狗科技计算机有限公司 Private 38 Migu Ai Chang 咪咕爱唱 13,126,918 0.149% China Mobile 中国移动无线音乐基地 Private 39 Yin Yue Quan 音乐圈 12,574,354 0.143% QQ&Samsung(预装) 北京一点网聚科技有限公司 Private 40 Huawei Music 华为音乐 9,239,443 0.105% Huawei 华为技术有限公司 Private 41 QMKG 全民K歌 9,059,066 0.103% Tencent 腾讯 700-HK 42 Music radar 音乐雷达 8,115,102 0.092% Yinlong Technology 上海吟隆信息科技有限公司 Private 43 POWERAMP 能量音乐播放器 6,461,494 0.073% Max MP Max MP Private 44 DJ music box DJ音乐盒 6,242,768 0.071% DJYule.com DJ娱乐网 Private 45 Wo Music 沃音乐 6,150,797 0.070% China Unicom 联通音乐运营中心 Private 46 KKBOX KKBOX 6,111,628 0.069% KKBOX Taiwan Co.