Tuesday, July 26, 2011

Profit from the legal online music, how far? Free should not be "waste"

The reporter Zhuge Yi

The world's largest Chinese search engine Baidu has announced, with Universal Music, Warner Music, Sony Music and other record companies to sign three international licensing digital music distribution agreement, Baidu genuine music reached a new milestone.

News, musician Chen Shaoqi said: "This is a historic day, marking the following films and television shows in the network of legalization, the spotlight has finally let the music have also been irradiated." In fact, the music is "according" to the just the first step, how to make original music produced a steady stream of online profits, it is fundamental to survive, and this is far from optimistic.

Ancient and modern music, a clean sweep

According to Baidu in China, with three major record companies signed a joint venture Wanshida distribution agreement, Universal, Warner, Sony, Baidu will be authorized to upload their complete song catalog and upcoming new song catalog, which includes both Chinese songs, but also contains its other global music catalog. Baidu users will be able to directly from the server and download free online play. Accordance with the terms of the agreement, Baidu will be based on Baidu's MP3 music community and the new platform "Baidu ting!" Online play and downloads of data, music content to pay music copyright royalties.

Conference, Baidu, and three major record company executives have said: "Everyone, especially the music lovers, will be the beneficiaries of the agreement." Industry has to be a positive response, the network Internet Society of China Wang Bin, Secretary-General of the Copyright Alliance said: "This marks the genuine process of China's online music rose to new heights." In March this year, Baidu's cooperation with the MCSC, to create a China-based Internet music lyrics copyright genuine precedent, MCSC Director-General, said Liu Ping , "hand three major record companies, recording will help further resolve the genuine issues of copyright."

10 million and 6.5 billion of the difference

Search engines "sell" music, Baidu is not the first. In 2009, Yao investment Whale Music Network, with operations in China, Google join forces to listen and download free online service that Google provides the world's first Universal, Sony, Warner and EMI music, the four major record companies legitimate free download sites. In recent years, whales and happy net into signing an agreement allegedly reached the amount of the monthly download audition about 200 million annual advertising revenues of 10 million yuan.

Mobile phone ring tone music with a quarter of revenue compared to 6.5 billion yuan, 10 million drop in the ocean, gave new hope music industry. However, with piracy rampant, in addition to control of the mobile channel, it is difficult to guarantee the rights of musicians. Music page of advertising revenue to rely on the major record companies website hand, there is a dream - the ultimate user is willing to bet that high-quality music service fees, these services will allow remote users to store music and access from anywhere store music.

Should not be a free download of "waste"

Profitability is not an easy, Baidu is still investing heavily in music is genuine. Analysys analyst Sun Peilin that move and Jingdong, Dangdang loss selling books similar reason. Baidu attention to genuine music, largely because the music before the search brought a lot of traffic, gradually QQ music, watercress, radio, etc. scattered. Baidu has relied on advertising to bring traffic and rely on advertising to achieve profitability, to be able to halt the decline in traffic, build your own music platform, within reason. However, QQ music, watercress and radio platforms are based on social relationships, and Baidu failed to establish the appropriate social networks, how the results of recovering lost ground, difficult to predict.

Compared to sites on the profitability of the various calculations, the demands of users is much more straightforward. In the forums and microblogging, there have fans that care platform is not genuine, more consideration is audition results. Some people complain about the middle of a free, downloadable MP3 sound off, "you can not free, but we should not allow free download of the 'waste'." Some people believe that fast-food era computer to listen to sound in general works enough, without spend money on high-fidelity music. How to make a good online users willing to music pocket, cell phone ring tones to compete with the length of a test of patience and website promotion tool.

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