What Can We Learn From China?

December 21, 2007


For years the Chinese music industry (and video/dvd industry) has the most hostile environment that`s possible. Piracy rules there for many years long before the big digitalisation-internet-p2p wave here in Europe.

In order to survive the chinese music industry has to take over an artist’s entire life – recording, publishing, management etc. – 360 degrees – to get all possible revenue streams. For years now…

What can we learn from the industry there? What have they done? Is there anything useful? Are there similarities?

Some facts about China from Ed Peto:

– Physical piracy runs at around 90%.
– The average gig ticket is £3 and charging anything over £7 for a concert will alienate the young Chinese music crowd.
– Publishing is a foreign idea to the Chinese and is therefore a tiny, unpredictable source of income.
– All media is government owned or heavily government monitored and, in most cases, requires ‘financial incentives’ in return for coverage.
– Despite a population of 1.3 billion people, the legitimate physical music market was only worth US$86million in 2006, making it the 20th biggest in world.
– All foreign companies must enter a joint venture in order to set up shop in China, handing over at least 51% of their company in the process.
– All music has to go through lengthy and seemingly arbitrary government censorship procedures.
– China is a black hole of statistics, quite often by design, making market research and due diligence incredibly difficult.

Ed Petos blog about the Chinese Music Industry and this nice article at The Register.


One Response to “What Can We Learn From China?”

  1. […] “nearly” exist, where they can`t loose as much like in Europe or the USA (See my post a few weeks ago about the Chinese music […]

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