Music

transmitCHINA, Day 2

[STILL SOMEWHERE NORTH OF BEIJING] – I’m dealing with two big walls today.  The first, the actual Great Wall of China, is just up that ridge.  It’s possible to walk twenty minutes up a path for a breathtaking view.  That’s cool.

The second wall is the Great Firewall of China, which can make accessing certain non-Chinese areas of the Internet slow and frustrating.  Just getting this site to launch to add entries is terribly frustrating.  And don’t even bother launching a Google search.  That’s not cool–unless, of course, you’re part of the Communist Party. In which case, this kind of thing is keeping you in a job.

But back to this thinktank music conference:  there were a series of roundtable discussions and speakers on day two.  Here are some quick highlights for me:

 

  • Yes, the way of doing business with the Chinese is completely different than doing business with anyone else on the planet.  The cultural differences can be rather unexpected.  For example, Blackberry’s new BBM Music service (where you can share up to 50 songs with your Blackberry friends) will probably find its niche by sharing karaoke tracks instead of regular commercials recordings.  RIM envisions many communities to be built around this concept.  BBM karaoke competitions could bring in millions of users.   Compare that to the ho-hum reception that BBM Music has received in the west.
  • Software by a company called QNX will soon become more prominent in cars over the next couple of years was QNX works with automobile manufacturers to great a common language (if not appearance) for dashboard interfaces when you plug in your smartphone.  RIM (which owns QNX) is working on a number of R&D initiatives with many auto manufacturers, including GM and Toyota.
  • DJs in China are no longer being used as vehicles for selling music by labels.  Instead, the big DJs find sponsorships from companies who sell DJ gear.
  • Since 99.9% of music in China is pirated (the Chinese people at the conference insist that’s not an exaggeration), no one makes money selling music.  Complicating matters is that there isn’t enough enough disposal income to set concert ticket prices as high as they are in the west.  The main way revenues are generated are by selling music sponsorships to companies willing to subsidize the gigs. Sponsors also buy a negotiated number of downloads to give away.  They may also take a position in the publishing of the music and/or get a piece of the merch action.
  • Although there are just seven million people in Hong King, there are six telcos.  No wonder competition for wired and wireless services is so fierce.  And no wonder each one is trying to outdo the other on speed.
  • Good quote:  “Technology didn’t kill the music industry, but it did make some of the older players suicidal.”

More tomorrow.

 

Alan Cross

is an internationally known broadcaster, interviewer, writer, consultant, blogger and speaker. In his 40+ years in the music business, Alan has interviewed the biggest names in rock, from David Bowie and U2 to Pearl Jam and the Foo Fighters. He’s also known as a musicologist and documentarian through programs like The Ongoing History of New Music.

Alan Cross has 37946 posts and counting. See all posts by Alan Cross

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