China’s Music Industry Unplugged : Business Models, Copyright and Social Entrepreneurship in the Online Platform Economy

"Contextualisation, contextualisation and contextualisation. A highly recommended book to understanding and doing businesses in Chinese cultural and creative industries with policy insights and theoretical contributions." --GU Jie, Professor, Communication University of China This is probably the first book that addresses the new digital music economy and business as part of the creative industry in China. Troy Chen is imbued with the passion to offer strategy--namely a "spirit" of social entrepreneurship --to artists and creators in the music industry to tackle the constraints of copyright regime and new challenges and complexities accompanied with the platform economy. -- Anthony Fung, Professor, School of Journalism and Communication, The Chinese University of Hong Kong and Professor, School of Arts and Communication, Beijing Normal University China's Music Industry Unplugged combs through the evolution of the business models of China's music industry in the context of strengthening copyright protection, shifting technological landscape and changing consumption culture. In this comprehensive and readable book, Troy Chen offers a critical analysis of what these changes mean for musicians and how their interests can be protected. --Elaine Jing Zhao, The University of New South Wales This research book is the first of its kind to conduct an interdisciplinary research on the recent and dramatic developments in China's music industries with a particular focus on business models, copyright protection, and artist compensation. The monograph explores and discusses proper business models through which revenue can be generated and maintained in a changing copyright climate and transforming business environment. It also discusses how musicians can be fairly compensated in the online platform economy informed by social entrepreneurship. This book is distinctive in the sense that it explores the intersection of cultural and creative industries, legal studies, business studies, and new media. It uses a qualitative and mixed-method approach to study business innovations and institutions in the making in the second largest economy which is also gaining cultural and political significance around the world. Zhen Troy Chen, PhD, FHEA, Senior Lecturer in Digital Advertising, London College of Communication, University of the Arts London. He is also Adjunct Research Fellow of the Griffith Centre for Design and Innovation Research at Griffith University, Gold Coast Campus. His research interests are in digital media, cultural and creative industries, cultural and media policy (copyright), journalism, and experience design. His research papers have appeared in Journal of Consumer Culture, Ethics and Information Technology, Social Semiotics, Asian Journal of Women's Studies, and Global Media and China. He also contributed his book chapters published by Bloomsbury Academic and Routledge. Acknowledgements Contents Acronyms List of Figures List of Tables Part I Copyright Law and Social Entrepreneurship in an Online Platform Economy 1 Setting the Stage 1 Background 2 Exploratory Observations: A Great Leap Forward or More Tensions? 3 The Marginalised and Neglected Artists 4 Research Questions 5 Structure of the Book References 2 Music Industries, Platform Economy and Social Entrepreneurship 1 The Supply Side: Production of Culture 2 The Demand Side: Social Network Market 3 The New, Creative, and Digital Platform Economy What Is New About the Platform Economy? New Potentials and Challenges The Contradiction Between Firms and Market Understand Sharing and Exchange Edited Platform and Industrial Ecology Platform Democratisation vs Control The Economics of the Platforms 4 The Strategy of Artists: IP, Economics and Social Justice Rational Choice? Economic Approach and Social Justice A Theory for Action: Social Entrepreneurship and Empowerment A Contested Definition The Refined Roles and Qualities of Social Entrepreneurs Characteristics: Vision, Motivation, Innovation, Activation and Change The Impulse to Change the Status Quo: Both Economic and Social A Playbook for Social Entrepreneurship in a Platform Economy A Model of Social Change in the Platform Economy Strategies for Change The Theory of Change Model Resistance, Inertia, Hegemony and Unintended Consequences 5 Conclusion: New Norms for the Music Industry in China References 3 Doing Music Industry Research in China 1 Introduction 2 The Use of Qualitative Methods Socio-Legal Analysis: Discourses in Documents Interviews Participant Observation Case Studies Access and Pilot Interviews Qualitative Analysis Thematic Analysis 3 Ethical Considerations 4 Conclusion References 4 China’s Copyright Law and the Music Industry: A Social-Legal Analysis 1 Authors’ Rights and Copyright System 2 International Conventions and Treaties 3 A Brief History of China’s Copyright Legislation and the Music Industry The Interwoven Pre-Modern Music Economy and Copyright in China Rationales and Trajectory of Chinese Copyright System 1949–1979: Maoist China and a Socialist Copyright System 1979–1990: Internal Drive and Autonomous Force 1992–2011: Globalisation and the Internet 2011 Onwards: A Necessary Autonomous Development 4 Conclusion References Part II Evolving Business Models, Strategies and Tactics 5 The Traditional Proprietary Model 1 Music as Copyrightable Work 2 Mapping the Music Industry Through Its Traditional Value Chain The Conceptualisation of Income Streams Subtheme 1: Copyright Ownership, Royalties and Litigation Songwriters and Publishers Sound Recordings Licensing Streaming and Digital Downloads Subtheme 2: CMOs and Copyright Management Performing Rights Societies Mechanical Rights Societies SoundExchange Subtheme 3: Non-copyright Activities 3 Focus: The Traditional Model in the Chinese Music Industry Ecosystem The Golden 30 Years of the Traditional Model: 1980s–2000s Recording and Mechanical Licensing Shanzhai, Globalisation and Transformation Copyright Protection: Tune In, Out and Back In The Rise and Fall of the Recording Companies Inception Wild Fission Declining Shanzhai Sales But Rising Original Creation Musicians’ Revenue Streams in China Licensing and CMOs The Important Yet Missing Rental and Lending Right The Traditional Model in the Online Platform Economy 4 Problematise the Traditional Model with Chinese Characteristics 5 Conclusion References 6 The Renegade Model 1 Introduction 2 At the First Half of the Game: Chinese Digital Music Market (1997–2006) Online Music Market Wireless Music Market 3 Renegades Going Digital: Music as Information Who and What Are the Renegades? Case Study in China 4 The Revenue Streams of the Earlier Digital Music Market Ad-support, Subscription and Value-Added Services Bundling: Smartphones, Tablets and Speaker Manufactures Salary, State Patronage and Self-Support 5 Discussion The Economic or Market Approach The Political The Individual Autonomous Approach The Collective Industry and International Aspect The Cultural (The Bargain Approach) 6 Conclusion References 7 The Platform Ecosystem Model 1 Introduction 2 Theoretical Underpinnings 3 Technology and Platform in a Social Media Era 4 Platform Ecosystem Model Music as Services Over-the-Top Services: Potential and Challenges Case Study: Indie Music and the Long Tail—NetEase Could Music Case Study: Seamless Ecosystem Platform—QQ Music Revenue Streams and Potentials Challenges and Growth Issue 5 Artists Strategy and Tactics in the Online Platform Economy Self-Support and Associations Positioning in the Networked Precarious Industry Be Entrepreneurial and Plug onto the Platform Platform as a Promotional Tool CRM System to Leverage Fan Purchasing Power Retailing and Ecommerce Model Crowdsourcing: Leverage the Fan Economy Flexible Consumption Model Be Entrepreneurs and Create Your Own Business 6 Conclusion References 8 Conclusion 1 The Theoretical and Business Models in Review 2 Artists Strategy and Tactics in the Online Platform Economy 3 Policy Implications 4 Music into the Clouds: Limitations and Future Research References Index