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Monday, January 23, 2012

A Dude In China Sends This Across The Pond

"I have been watching the SOPA/PIPA drama unfold, so thought I would share something that perhaps not everyone of you may know of.
It took me three years to realize that google offers a free legal way to download music for people located in China (since 2009): www.google.cn/music/
It is backed by Sony BMG Music Entertainment, EMI Group, Universal Music and the Warner Music Group. So much for the RIAA suing families and kids in the western world for illegally sharing music for free when they give it out legally and for free - at the same time - to China. Hope Google will do the same with the MPAA for TV shows and movies.
Let's just say I've been downloading like a mad man lately - legally for free :)
A prosperous year of the dragon! Gong xi fa cai! Happy Chinese New Year!"
(Don't think that you can use this in America, the functionality is disabled for American visitors)

Comments:
1.
I'm chinese and let me just point out a big difference I noticed between China/Hong Kong and Western music culture.
Though alot of people download music in China, majority of fans still continue to buy albums. This is because the really become more of a collection item. The packaging is great, it's in a large box with posters and free stuff and everything. Each regular album usually has a "collectors edition" which many many people continue to buy to this day. I believe that this is the big reason the music companies don't mind giving out free downloads.
Here are some examples of special albums, which I have many friends who would gladly buy, even if they have already downloaded the songs for their ipod, ringtone, or whatever.
Also, as you know, Karaoke is an enormous part of asian culture. I believe the music companies get pretty good money from the millions of karaoke bars in order to use their material.

2.
I've noticed that too for a while. In China, where piracy is rampant, I hear Blizzard gives away World Of Warcraft and only charges for play time. In the West, players have to pay for play time plus pay to buy the game data itself, which is expensive as each installment releases at $40-$50 retail. Whereas the Chinese get the data for free. The Chinese consumers get rewarded for being avid pirates.

3.
Chinese record labels have managed to grow and become successful in an environment where the norm according to IFPI is 99% piracy. Not trying to blame either side but perhaps there is something wrong with their (RIAA) current business model? Record labels are not much more than a middle man between the artist and the listener and in many industries throughout history the middle man often suffers if the producer can find a direct model to the consumer, unless the middle-man adds significant value to the value chain - and a lot of that value is gone with the disappearance of physical media and the appearance of the internet. Perhaps record labels need to ask: what do we need to do to add more value to the value chain? and what do we need to change in our business model to become more relevant and adaptable to innovation? I am of the belief that record labels (RIAA) can do something about it as shown by the success of their Chinese counterparts (competing in the same environment) without implementing draconian laws and even giving away music for free. Would love for more insight though from others.

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