Kuwo, a digital music service, launched a YY Music clone called Kuwo Live Karaoke. Lei Ming, CEO of Kuwo and former chief architecture officer at Baidu, wasn’t hesitated to acknowledge that its a copy, saying “this model is very likely to make disruptive changes. It’s also possible that it will become one of Kuwo’s major revenue sources, but it may take a long time”, Mr. Lei said at the launch event, “(we have been) working on interactive music services. That YY went public increases my confidence in the future of music industry. (I) saw the changes in business model. That (growth) will be accelerated.”(source in Chinese)

Kuwo Live Karaoke works exactly the same with YY Music does: audiences can purchase virtual gifts to send to online singers; Kuwo shares revenues with singers. The most expensive virtual gift on Kuwo is priced at 200 yuan ($32), much lower than that, 120 thousand yuan worth of monthly subscription, on YY Music.

YY Inc., an internet service provider that just went public on the NASDAQ two weeks ago, made $28.6mn from YY Music in the first nine months of 2012, with a 657% increase as of the same time in 2011. YY Music has become an ecosystem where, besides audiences and singers, third-party agents also take part in by organizing theme channels and events, and sharing revenues with singers. Apart from selling virtual items for audiences to show support to performers, YY Music also developed a purchasable status rankings for users — like the one used by Tencent to increase both user stickiness and revenues. YY plans to charge entry fees to live music events, according to its SEC filings.

Start your free trial now.

Get instant access to all our premium content, archives, newsletters, and online community.

Monthly Membership

Yearly Membership

What you get

Full access to all premium content and our full archives

Members'-only newsletters

Preferential access and discounts to all TechNode events

Direct access to the TechNode newsroom

Start your free trial now.

Get instant access to all our premium content, archives, newsletters, and online community.

Monthly Membership

Yearly Membership

Tracey Xiang

Tracey Xiang is Beijing, China-based tech writer. Reach her at traceyxiang@gmail.com