Start from 1980

Chapter 1137 Digital Music Alliance
Since the 80s, the record industry in the mainland has been plagued by piracy and struggled in the mud for a long time.

Anyway, at that time it was you who sang and I sang and everyone sang, and there was no copyright fee for the songwriter.

In addition to troubles for songwriters in the Mainland, Hong Kong songwriters are also troubled. Many songwriters are speechless rather than smiling when they hear their songs are popular in the Mainland.

These record companies who come to the door have a keen sense of smell, even if it is only a small MP3, and it has not yet been officially released.

But Shengshi has always had the ability to realize what it has boasted.

They worry that this new digital product will have a huge impact on records.

Instead of waiting until they actually put the product on the market, it is better to come to ask for an explanation now.

And they didn't plan to ask for an explanation, they mainly wanted to see what Shengshi had to say first, and then called on more record companies to join the condemnation of Shengshi in the newspaper.

In this way, it is more convincing. If it is fabricated out of thin air, they are worried that they will be hit by a muck truck in the middle of the night.

Record companies have always had two major incomes: one is the income from the distribution of records, which is mainly based on the release guarantee fee; the other is the income from singers' performances, such as singers' performances and advertisements.

Due to the fact that piracy cannot be eradicated, selling records is only used as a means of publicity to increase the singer's performance and advertising value.

But there is still money to be made.

But if the main sales channel of music is transferred from traditional urban audio-visual stores to the Internet.

This means that the music industry has also handed over the right to speak from record companies to others, and the fate of the music industry is determined by the prosperity of its own network channels.

The change of music channels will not only change music sales from tangible CD carriers to intangible digital carriers, but will also change the music sales model.

In the conference room of Shengshi, the person in charge of EMI Records spoke first: "As far as we know, Shengshi also has its own record industry, but it has leaped from traditional records to this kind of digital music all at once.

It hurt not only our peers, but also so many artists under Shengshi, and it caused a huge impact on this industry. "

"That's right." Warner's people followed suit, "Originally we were all selling in bundles, and we also believed that Shengshi Records is also following this model. If this model is broken by Shengshi himself, it means that we will be smashed. All rice bowls."

The so-called bundling sale is because popular items are sold together with unpopular items. In addition to loyal fans who will buy them, many people will give up buying because they feel that they are not worth it, or turn to buy pirated "platter" compilations.

Most consumers feel that it is worthless to have only one or two title songs in a CD, and they also disdain this sales method.

According to what Su Chen said, once the digital music model is used as the carrier, music can be freely circulated without the CD carrier, and people can directly download the song they like.

Breaking the model of matching sales of 10 songs on a CD, so that music can be sold as a single.

Then they still make a lot of money, so they might as well pack it up and go home obediently.

A person from PolyGram said: "Although Shengshi is a leading enterprise in many aspects, this kind of practice of ruining the job after eating is really disdainful. If Shengshi cannot give us a satisfactory statement today, we We will unite all record companies to boycott."

From the moment he decided to release MP3, Su Chen had a premonition of the impact of this thing on traditional records. Even though he has his own record company, it doesn't mean he won't break his job.

"Explanation?" Su Chen said with a smile, "I don't know what you are talking about, do we have to release some products and explain to all colleagues?
And do you really think that my MP3 can really cause a huge loss to the interests of traditional records? "

Everyone nodded in unison.

"Isn't it? It's really going to be released on the Internet, which means that we have no way to collect copyright fees for this song."

"Yes, if that's the case, this thing will be more of a headache than a pirated copy."

"I think if this kind of thing is really going to be on the market, there will be no place for our traditional records."

"..."

Anyway, they all disagree with Shengshi publishing this thing.

Originally, everyone was still making records together, relying solely on sales results, but this guy has moved from traditional records to another field, how can he do this?
Facing these people's questions, Su Chen said: "I already know what you are thinking. It is nothing more than worrying that the record will not be sold, but have you ever thought about selling a single?"

"Single sales?"

"what is that?"

"How do we make money from single sales?"

"To be honest, we have established a digital music distribution alliance to distribute the songs of our own artists and the artists we represent through digital online."

Su Chen said: "In the past, we had to make up ten songs to form an album before we could be eligible to promote it, but if we develop a single sales model, we only need one title song.
This not only greatly reduces the operating cost of the record company, but also makes it more efficient, as there is no need to find someone to compose songs.

The risk has also become smaller. You can wait for the song to become popular before releasing an album to the singer. Therefore, after the single is sold, the CD record is just a gold-plated product for the singer to increase his status, or it will become a collection of loyal consumers like vinyl records. .

The era of singles not only reduced the operating costs of record companies, it was even so low that a non-professional singer could record songs and become popular without the packaging of a record company. "

Everyone carefully thought about what Su Chen said, because now they are selling in bundles, the cost is very high, and many record companies are closing their doors because they can't sell their products.

If it is really like what Su Chen said, it is a single model, which can indeed reduce costs.

But they have become accustomed to paying for bundled music and its carrier, and the record company's copyright income is realized through the record carrier.

If piracy simply destroyed the price of music purchases, online downloads will fundamentally change consumers' perception of what music has to pay for, and how, where and what kinds of music they listen to.

And there is absolutely no way to prevent Internet downloads. It has thousands of sources and thousands of disseminators.

Once they are away from the hard-earned sales network of record companies, they will lose everything.

No matter how extravagant Su Chen said, they still didn't really believe in such things.

"I also know that you are worried that nothing more than eliminating spreaders, that after a song is released on the Internet, there will be countless people rebroadcasting it. In this way, everyone will not receive money."

Su Chen opened his folder, took out a few documents and handed them to the people in front of him, "In this case, why don't you consider joining our Digital Music Alliance?
Because we use our own encryption method, and we also use our own encrypted music library. At the same time, we will develop a platform, and you can choose to join our alliance.

Then through our company, convert your music works into digital music, so that when consumers want to download, they can only download through our platform, and the key is to pay for download.

For example, some previously released songs charge one Hong Kong dollar, while newly released songs charge five to ten Hong Kong dollars, and the money will be directly deposited into your bank account.

Oh, by the way, I almost forgot to mention that we are developing a new consumption model called online payment function, and you can also choose to sell your own records on our platform, and then deliver them to consumers through our logistics hands..."

(End of this chapter)