Touring China – some differing perspectives

A recent article written by a Canadian publication profiles and chats to some bands that have toured China over the last few years. Some interesting take outs:

“If the band’s at a certain level and expects a certain degree of professionalism, production and predictability, then I think the Chinese market can introduce some variables that might not work,” says Henwood. “But if the band is looking for life experiences and willing to roll with the punches then I certainly would recommend they go.” (Piers Henwood manages Tegan and Sara as well as being the guitarist in Jets Overhead)

“I don’t think there’s a reliable market for the music that we play in China,” says Alex Cooper, singer and guitarist for Parlovr, who played last year’s Transmit tour. “At this point it’s kind of hard to tap into anything there financially.”

“The great thing about China is once something gets going it just rolls like a wave. All of a sudden there’s this explosive energy,” he says. “If you don’t have your relationships in place and you don’t have your network and you don’t understand how to operate on the ground there, you’re going to have to move really fast. If you’re not connected to it, you might miss it.”

Versteeg sees it a bit differently. “You can’t really be in this business to make money,” he says. “What’s the difference between making no money in China or no money here?”

[disclaimer: our sister company Split Works co-produces TransmitCHINA and also toured all of the artists mentioned above]

Our comments:

It seems that everyone in this article is right to a degree. There is little in the way of established infrastructure, there isn’t a reliable market for Western music (or really music at all) in China, but there is a need to get yourself positioned, because if and when this place does “get it” growth will be exponential, like in every other industry here.

Changes in the last 5 years point inexorably towards this – the explosion of live venues, festivals and bands to play points towards an increasingly febrile and vibrant undercurrent flowing through China’s cities. Of course, the main impediment to real growth are reliable income streams outside of touring which is a conundrum not exclusive to China. Big companies are hard at work trying to solve this: witness the mainstream acceptance of paid streaming service Xiami, the recent establishment of an ad supported service from search behemoth Baidu and the impending arrival of Spotify. The future isn’t yet rosy, but dawn does appear to be breaking on the horizon…..

 

Sinica Podcast goes Musical

Kaiser Kuo and Jeremy Goldkorn have been running the excellent Sinica Podcast for a while now, running the gamut of all things China: economics, politics, the internet and… the music industry. We were honored to be speaking in such illustrious company – Split Works laoban Archie (and oftentimes author of this tome) and economist/ music label impresario Michael Pettis joined Kaiser and Jeremy for an hour of opinions, product plugs and mutual love.

Check it out in its entirety HERE

China getting tough on piracy?

There have been many false dawns and don’t hold your breath, but there is positive news in the fight against piracy in China. According to Chinatechnews, China’s Ministry of Culture have issued a directive that says “irregular and illegal music websites” will be closed down. Websites have until the 10th January to comply with this directive.

We assume this means the end of the MP3 part of Baidu, and several other major players in this space. Hao Ting – one of China’s largest music streaming websites – actually closed doors on December 28th, with speculation rife that the end was due to an inability to obtain legal status for its enormous library of tracks.

We will be watching interestedly to see how this pans out.

What a potential GOOG exit means for Top100.cn

The WSJ’s Loretta Chen covers the potential fallout from a Google China withdrawal for its music partner Top100.cn HERE.

Top100 launched the world’s first free-to-stream-or-download music service in association with Google in 2008.  You can read more about that HERE.  The service has struggled against Baidu’s “free” and illegal service, which is the mainstay for most Chinese music lovers.  But with Baidu under pressure to go legal, services like Spotify, Nokia’s Comes with Music and others are all eyeing China with interest.

Some more thoughts on the digital distribution of music in China

Back in September, new laws on the digital distribution in China flashed into our consciousnesses briefly.  If you want to read about that, go HERE.

We thought we would come up with a more thoughtful analysis.  If you are interested, please read on.

by Nick Papa

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Baidu/ QTrax deal not as stated?

Last week, ad-supported music download service QTrax announced that Baidu would be referring music search to QTrax’s legal offering.  You can read more HERE.

According to a statement from Baidu, QTrax have overstated the significance of this deal, which according to them is simply a text based association linking songs with extra information.

You can read more HERE.

Google Music (CN) – users, but small returns

According to Loretta Chao in the WSJ today, Google China’s free music service (ad supported stream and download of up to 700,000 tracks) is now dispensing around 5m tracks per day.  Despite this, and the emergence of 5 major blue chip advertisers, ad revenues are still fairly small.  However, Gary Chen, Orca Dgital’s head of sales tells the WSJ that this will change shortly with some major deals in the pipeline.

Takeup is still slow for some reason – of our circle, we don’t know anyone using the service.  Chinese music fanatics are still hopelessly wedded to Baidu and the Chinese equivalent of Rapidshare, Rayfile.  Unfortunately, music in China = Baidu or Rayfile, similar to the West where search = Google.

Read the whole article HERE.

Baidu “heart” QTrax

Reuters today confirmed that the struggling ad-supported free music service, QTrax (not to be confused with Pepsi’s new China based record label Q Music) has teamed up with Baidu.  H/T to our friends at Outdustry.

This seems to be a very, very beneficial solution for QTrax, who will now have all music searches on Baidu referred to their free and ad supported database of legitimate content (QTrax has licenses with all 4 majors – just).  We cannot see the immediate upside of this union to Baidu.  It could be that QTrax are offering a exceptional amount of the ensuing revenue back to Baidu, or that Baidu sees a good strategic fit with a company already signed up with the 4 majors and already using P2P technology to deliver DRM free downloads.  Will there be issues with language and compatibility?  Only time will tell…

What seems apparent is that this is a significant step forward in the battle against piracy here in China.

You can read more about QTrax and their struggles HERE.

You can read the full Reuters release HERE.

The Censors close in

As a further post to our original article HERE, we report further on this newly announced move to regulate the distribution of music online.

China moves to control online music industry: state media

BEIJING, Sept 10, 2009 (AFP) – China has announced that every foreign and domestic song posted on music websites must receive prior approval, state media said Thursday, in the nation’s latest efforts to control online content.

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China makes WTO-friendly noise…

According to TechCrunch, China is finally getting “more’ serious about music copyright infringement.  The move seems to be a direct attack on China’s leading search engine, Baidu, that by some estimates derives up to 80% of its traffic from its index of music albums and tracks.  There has been plenty of research, analysis and conjecture that Baidu actually hosts much of this music on its own servers.

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