Page 336 - 2020 White Paper on the Business Environment in China
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0 White Paper on the Business Environment in China
leaders and unapproved versions of China’s history. apps cost around three dollars. Those who pay for
His agency took measures to block the website and membership get features such as offline listening
online application of Australia’s public broadcaster, and high-quality audio which works similarly to
the Australian Broadcasting Corporation. It joins Spotify Premium. While only 5.3 percent of users
Bloomberg, The New York Times and The Wall Street pay for music on Chinese digital music platforms in
Journal in a group of overseas news organizations 2018, iResearch estimates the proportion will rise to
unavailable to ordinary Chinese web users (Frater). eight percent by 2020 (Li).
Music Overall, China’s official commitment to music
copyright protection isn’t even three decades old
Revenue of China’s digital music market hit yet: the country passed its first copyright law in
US$1.14 billion U.S. dollars in 2018. iResearch 1990, and founded its first and only performing
estimates that subscription will contribute 77 rights organization, the Music Copyright Society
percent of the total revenue when the digital of China (MCSC), in 1992. As uphill as this may all
music revenue expands to 42 billion yuan in 2023. sound, the simple fact is that China loves music and
A couple of reasons combined to fuel the digital eventually the rights that underpin it all will get their
music market growth, starting with strict rules on due. The high numbers being recorded in China
intellectual property protection. Chinese authorities only amounts to roughly 20 cents per person in the
launched an operation named “Sword Net” in 2015. country annually, suggesting a significant amount
The operation demanded that digital streaming of money being left on the table. This is in part
outlets take down unlicensed music. The country’s because free music consumption remains the local
digital music market saw a 113.2 percent year-on- norm. Tencent Music, a public company on the New
year growth on revenue that year. Before “Sword York Stock Exchange, revealed in its IPO filing that over
Net” took place, music platforms depend heavily 96 percent of the company’s 600 million consumers
on advertising. Advertisement contributed more aren’t paying for access to music streaming. That
than half of the revenue from 2013 to 2015. The said, sources anecdotally peg the current piracy
percentage dropped to 23 percent in 2018, when rate in China at a much lower rate of 30 percent. In
subscription took up 59 percent and IP management addition, not only are the free tiers on local streaming
18 percent share of the total revenue. Raising internet services more fully licensed, but these companies are
population and established online payment system also actively policing content infringement, in part
contribute indirectly to China’s digital music market thanks to a nationwide antipiracy crackdown that
growth. As of June 2018, 802 million people use the China’s National Copyright Administration (NCAC)
internet in China, among whom, 98.3 percent access has been fronting since 2015. The publishing picture
the internet from mobile devices, according to China looks slightly more precarious. While there are still
Internet Network Information Center. The country’s no official trade numbers available for publishing
popular mobile payment apps such as WeChat Pay in China, sources say the size of the market is “sub-
and Alipay make paying for digital music just several $100 million,” with digital accounting for 60 percent
clicks away. The 2019 International Federation of of the pie. Local officials are woefully underpowered
the Phonographic Industry (IFPI) annual Global to enforce performance royalty collections, in part
Music Report rank China as the seventh largest because the potentially lucrative channels of radio
music market in 2018. There were 255 million users and TV are still owned and controlled by the state (Hu).
of paid streaming services globally at the end of
2018, with paid streaming accounting for 37 percent Books
of total recorded music revenue, the report said.
Paid audio streaming saw a 29.5 percent growth China has seen rapid growth in its publishing
in Asia and Australasia in 2018. The region posted industry over the past four decades, with the
an 11.7 percent growth the same year to become number of publishing houses increasing from 105 to
the second largest market for combined physical over 580, data from National Press and Publication
and digital revenue, data from the report shows. Administration (NPPA) showed. In 2017 alone,
Monthly subscriptions to Chinese music streaming nearly 500,000 varieties of books were published,
336
leaders and unapproved versions of China’s history. apps cost around three dollars. Those who pay for
His agency took measures to block the website and membership get features such as offline listening
online application of Australia’s public broadcaster, and high-quality audio which works similarly to
the Australian Broadcasting Corporation. It joins Spotify Premium. While only 5.3 percent of users
Bloomberg, The New York Times and The Wall Street pay for music on Chinese digital music platforms in
Journal in a group of overseas news organizations 2018, iResearch estimates the proportion will rise to
unavailable to ordinary Chinese web users (Frater). eight percent by 2020 (Li).
Music Overall, China’s official commitment to music
copyright protection isn’t even three decades old
Revenue of China’s digital music market hit yet: the country passed its first copyright law in
US$1.14 billion U.S. dollars in 2018. iResearch 1990, and founded its first and only performing
estimates that subscription will contribute 77 rights organization, the Music Copyright Society
percent of the total revenue when the digital of China (MCSC), in 1992. As uphill as this may all
music revenue expands to 42 billion yuan in 2023. sound, the simple fact is that China loves music and
A couple of reasons combined to fuel the digital eventually the rights that underpin it all will get their
music market growth, starting with strict rules on due. The high numbers being recorded in China
intellectual property protection. Chinese authorities only amounts to roughly 20 cents per person in the
launched an operation named “Sword Net” in 2015. country annually, suggesting a significant amount
The operation demanded that digital streaming of money being left on the table. This is in part
outlets take down unlicensed music. The country’s because free music consumption remains the local
digital music market saw a 113.2 percent year-on- norm. Tencent Music, a public company on the New
year growth on revenue that year. Before “Sword York Stock Exchange, revealed in its IPO filing that over
Net” took place, music platforms depend heavily 96 percent of the company’s 600 million consumers
on advertising. Advertisement contributed more aren’t paying for access to music streaming. That
than half of the revenue from 2013 to 2015. The said, sources anecdotally peg the current piracy
percentage dropped to 23 percent in 2018, when rate in China at a much lower rate of 30 percent. In
subscription took up 59 percent and IP management addition, not only are the free tiers on local streaming
18 percent share of the total revenue. Raising internet services more fully licensed, but these companies are
population and established online payment system also actively policing content infringement, in part
contribute indirectly to China’s digital music market thanks to a nationwide antipiracy crackdown that
growth. As of June 2018, 802 million people use the China’s National Copyright Administration (NCAC)
internet in China, among whom, 98.3 percent access has been fronting since 2015. The publishing picture
the internet from mobile devices, according to China looks slightly more precarious. While there are still
Internet Network Information Center. The country’s no official trade numbers available for publishing
popular mobile payment apps such as WeChat Pay in China, sources say the size of the market is “sub-
and Alipay make paying for digital music just several $100 million,” with digital accounting for 60 percent
clicks away. The 2019 International Federation of of the pie. Local officials are woefully underpowered
the Phonographic Industry (IFPI) annual Global to enforce performance royalty collections, in part
Music Report rank China as the seventh largest because the potentially lucrative channels of radio
music market in 2018. There were 255 million users and TV are still owned and controlled by the state (Hu).
of paid streaming services globally at the end of
2018, with paid streaming accounting for 37 percent Books
of total recorded music revenue, the report said.
Paid audio streaming saw a 29.5 percent growth China has seen rapid growth in its publishing
in Asia and Australasia in 2018. The region posted industry over the past four decades, with the
an 11.7 percent growth the same year to become number of publishing houses increasing from 105 to
the second largest market for combined physical over 580, data from National Press and Publication
and digital revenue, data from the report shows. Administration (NPPA) showed. In 2017 alone,
Monthly subscriptions to Chinese music streaming nearly 500,000 varieties of books were published,
336
