The Radar recently came across this Larry LeBlanc (former longtime editor of Billboard Canada) interview with Jasper Donat. Donat, co-founder and executive director of Hong Kong-based entertainment marketing agency Branded, is also the president of Branded’s annual music industry conference, Music Matters, which we liveblogged last year and which we are psyched for this year. The interview contains some good insights on what the future holds for the music industry in Asia. Some of Donat’s notable quotables after the jump. But first, some more mindblowing China numbers from LeBlanc:
“In contrast to the Western culture, Asian youth prefer to download their favorite songs on to their mobile devices rather than computers. According to Chinese government figures, about 84% of China’s nearly 300 million Internet users download music over the Internet, and most of it is used for cell phone ring tones. In April, 2008, China Mobile started its testing of the third generation (3G) of mobile communication in 8 cities (Beijing, Shanghai, Tianjin, Guangzhou, Shenzhen, Qinhuangdao, Shenyang and Xiamen). While test results have not been made public, it predicted that the 3G usage will surge up to 100 million in China by 2011.”
On the growing popularity of live music in Asia:
“The big Chinese artists make their money out of endorsements, live and record sales. They use the record sales to promote the tour. Not the tour to promote record sales. Now that’s happening in Europe and the U.S. but it has been happening here for 20 years. …One of the trends coming through our Music Matters survey we do each year with 3,000 kids, not just for China but everywhere in Asia, is live. It is absolutely huge (in importance). There’s been the (recent) advent of (large-scale) festivals. Now, Asia is drawing on concepts from the West but there’s still a long way to go. In the UK, there are probably 300 festivals (annually). In China, there are probably three major festivals. Last year, with the Olympics and the problems with Tibet, festivals in China got postponed. But they are all back this year with sponsors and funding.”
– Jasper Donat
On bringing foreign music to China:
“In China, 95% of the market is local music. Well, 5% is still 50 to 75 million people who like international music. The challenge is how do you find them. Well, you don’t find them by just flying in and playing one show and flying out again. You need to build a relationship with the Asian audiences. You use the new social networks. In China, you might use QQ (instant messaging) which has something like 220 million registered subscribers.”
— Donat
On that Google deal:
“We are waiting to see what’s happening with Google Music. It is the first time that I’ve seen the entire industry come together and say, “Hey, This might work.” We all have to get our heads around what it means for the industry. As I see it, Google Music offers the industry a safe solution that is funded (by advertising). And it doesn’t try and change the way consumers behave. So it embraces the consumer, and embraces the (music) industry. The advertisers pay for it, and get bang for their buck. And, it is in a market where the industry isn’t (going to be further) hurt. Eventually, artists will get paid. It’s got to be seen as a win-win-win for everyone. I’ve always thought that the ad-funded model is the way to go in Asia, But you have to be able to provide volume to make it work. China certainly provides the volume.”
— Donat