Record business still profitable in digital age
Liu Qinlong, general manager of Pacific Audio and Video Co., has shed light on how to integrate technology platforms and the Internet in the context of the music industry. He was speaking at the Second Music Industry Forum 2015, held on Nov. 6 in Beijing.
Easy access to free online music has greatly impacted traditional models in the recording industry. However, traditional recording companies are still the ones producing quality music, Liu claimed, while admitting that these companies will need to utilize online platforms to stay competitive.
In terms of combining traditional recordings with digital technology, Liu said the first thing is that people involved in creating and recording music should have a broader vision. They should change their mindset to embrace the new era. At the same time, network operators should give corresponding responses and be supportive. In this way, the two parties together can forge a good environment for the music industry to sustain itself.
He also called for the government to take on due responsibility in promoting the development of the industry, especially in building sufficient legal systems in this regard.
Liu also rejected the widespread belief that the era of records has already passed. Even though Liu said he has witnessed a dramatic decline in CD sales, he cited the rebound of the vinyl record market as a counter example. He said the gains from vinyl records can basically make up for the losses in CD sales in these two years.
Records represent people’s nostalgia for the past and a habit for listening to music. In this sense, the traditional music industry will never die, Liu said.
At the forum, a report reviewing China’s music industry in 2014 was released by Communication University of China. According to the report, while China has entered a “new normal” stage, a restructuring of the music industry is taking place. In 2014, the industry made a total profit of 285.15 billion yuan, up 4.73 percent over the previous year. Currently, China’s music industry is in a transition period, with steady growth. With technological progress, the industry will embrace a new development pattern characterized by the “Internet Plus” slogan.