Zhongjin: The long-term growth logic of the music sector remains unchanged, and the industry has potential for valuation recovery.

According to a research report from Zhongjin Company, from the second half of 2025 to the present, the valuation of the music sector has undergone a significant adjustment. The core concerns of the market mainly focus on the long-term growth space and pressure on subscription business, competition impact brought by Douyin ecosystem and AI cover music relying on soda music, and the impact of AIGC on the value of legitimate content and platform business. Recently, Tencent Music and Netease Cloud Music have both released their performance for the year 2025. Zhongjin Company believes that the long-term growth logic of the music sector remains unchanged, diversified income has potential, and the industry has the potential for valuation recovery.