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Friday, September 21, 2012

Trade Review: Week Four (1/2)

Google to Shut Down China Music Service

http://online.wsj.com/article/SB10000872396390444620104578009941960495424.html

As the largest and single most coveted market on the planet, China is filled with immense opportunities for the entertainment industry if the content can break through the strict Chinese regulations. So many forms of media and entertainment vie for the Chinese marketplace (Film, TV, Books etc), but music’s incredibly unique characteristics place a greater challenge in entering foreign markets alike. Film and TV have visuals, gestures, dubbing and subtitles that allow any market to adapt to the content due to foreign markets understanding “universal language.” Books also have the option to be translated into different languages for each respective language. Music does not have this flexibility or ability to modify itself for individual markets – the content is consumed only in its original form. The beat and melody can only drive foreign listeners towards the music, but the lyrics are what give songs meaning and how listeners can relate to the emotions or message of the artist.

Chinese Internet users are also notorious for downloading illegal entertainment and media. In an attempt to minimize piracy, Google developed a music search engine for China called Google Music. With Google Music, users can unlimitedly stream any song they want for free with higher sound quality than a pirated song. Record labels teamed up with Google to license their music to develop the Google Music software as a way to try and cut their revenue losses from pirating, cater to the new style of music listening through streaming and cater to the Chinese market. Google Music and the record labels would split banner advertisement revenues on Google Music in exchange for their licensed music. However, Google Music recently shut down after three years of service because of a lack of traffic to not just Google Music, but Google itself.

Baidu is search engine giant of China with 80% of the market share. Already the minority search engine with 15% of the Chinese market, Google faced an uphill battle from the get-go of getting users to even know about Google Music let alone use Google over Baidu. In addition, Google Music’s only attractive service was the sound quality being better than a pirated song. Yet, piracy triumphed over Google Music because pirated songs allow for offline listening and Google Music only had a narrow selection of music available because not every record label agreed to license their music for this project. Using an underdog search engine and battling a heavily pirating Chinese population, music industry executives should be more hesitant on endeavoring in foreign markets because of preexisting, cultural practices and music’s unique characteristics cannot bend towards other languages or cultures like other entertainment forms can.  






  1. Tejada, Carlos. "Google to Shut Down China Music Service." Wall Street Journal. N.p., 21 Sept. 2012. Web. 21 Sept. 2012. <www.online.wsj.com>.

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