Free downloads of online music to end

By Zheng Xin (China Daily) Updated: 2012-10-31 07:21

Chinese people got used to freebies when it came to online music, so they might be hesitant to switch to another model, said You Yunting, a partner at the DeBund Law Offices based in Shanghai.

"You'd have to take a reform step by step, " You said.

Tian Hong, project director of the legal department of the Music Copyright Society of China, said that a reform would bring winds of change to the country's online music industry. It could spur a crackdown against piracy, while pushing for more respect toward copyright holders.

However, the success of the initiative would depend on the specific operating model chosen.

According to You, the alliance of the music websites was not formed to boost profits but to fight for survival.

He said that almost all of the music websites are in the red thanks to the rising license fees paid to the record companies.

"The license fees have become a heavy burden to the websites, in addition to the fees paid for the servers, broadband and labor costs," he said. "The advertisements can barely cover it."

The situation is especially severe for the small online music websites.

Wang said that Xiami has barely generated any profits as the website started charging for music downloads since its establishment in 2006.

"With abundant free music resources provided by the major music websites, it's hard to persuade consumers to foot the bill," Wang said.

However, the paid service model might not be a silver bullet either, You said.

The alliance may run afoul of the country's antitrust and unfair-competition laws, and might result in interference from the government, including the departments related to industry and commerce, as well as national development and reform.

Good news for artists

The idea of a joint paid service, however, was cheered by independent artists.

Hou Chen, the 26-year-old lead singer of a band called CLF, which was formed in 2007, said that the new business model would further encourage musicians, especially independent artists, to come up with better work.

Hou said that her band uploaded several original songs to the Web but never saw any royalties.

"We don't depend on the profits of selling music online but that would certainly be a recognition of our work," she said.

Hou said that the band makes some money only through live shows, which can bring them between 200 yuan to 4,000 yuan per performance.

"The current business model doesn't benefit the artists or the music websites, so it might be time for a change," she said.

Chen Limin contributed to the story.

zhengxin@chinadaily.com.cn