Google lunched official music search Discover Music at the end of October 2009, which claims to give more accurate search results of songs as well as providing direct streaming link from content partners, including MySpace, LaLa, Pandora, etc. The ultimate goal is inevitably to gain traffic by the search syndication and share commission fees by redirecting users to buy songs. Especially, if certain promotional content were placed in the search results as this article suggests, this service is more like a marketing tool for music labels and music websites.
Actually, it is not Google’s first step in music search; Google China has already launched Music service to China mainland users (mainland China IP only) in March 2009. As we all know, Google China has a different motto than “don’t be evil” in order to accommodate to China market, the music service is also completely different from elsewhere due to the unique Internet policy and Internet economy.
Google China Music is partnered with a start-up Internet music service company Top100-CN, whose investors includes Chinese NBA player Yao Ming, to provide free music streaming and music download. This company negotiates the copyright with major music labels, including EMI China, Sony Music, Warner Music, Rock Records and Tape, Taihe Rye Music, etc and provides streaming and download for users totally free, though with DRM protection. The business model is almost completely relying on advertising support and it will share the ad revenue with contracted labels. Sohu reports that after 7 months of launch, the company’s revenue reached approximately $3.7 million, with a 29% market share (Baidu is still the dominant player in music search/download market with a 61% share), and the company is still expecting more advertisers in the coming months. For Google, the situation might be better. At least, it increases music search traffic and sells advertising on these music pages without worrying about copyright and content source.
Though the company’s business is staggering, it seems the only way to do music business in a place where no one buys intellectual property. It is like a myth in china market: almost all global brands, especially luxury brands and urban life style brands/products see the emerging needs and markets in China, only cultural products see the market but can not penetrate it.The difference in Goolge US and China music service reveals the weakness of China Internet economy due to lacking intellectual property awareness. It once again reiterates the question where's digital economy in China (except online game).
No comments:
Post a Comment