Chapter Seventy-Seven: The Digital Music Alliance
In June, a report began to spread the screen, and AWM Music, which has recently become the leader of the record industry, jointly launched the "K-pop Digital Music Alliance Conference" with YG Entertainment and S.M Entertainment.
On the 8th, the three largest entertainment companies, led by AWM, Korea's largest record company, supplemented by S.M Entertainment and Y.G Entertainment, jointly proposed the establishment of a K-pop digital music alliance in major newspapers, held a press conference, and sent invitations to record labels and brokerage companies nationwide.
Unlike what many people imagined, unlike the previous digital music alliances led by other companies, this time it can be called a response, because last year, AWM Music was interested in establishing such an alliance, and various record companies are also looking forward to AWM, the new boss of the record industry, to lead everyone to greater benefits.
This is a very apt description, more than 80% of record companies and entertainment companies have sent representatives to Seoul to attend meetings, and most of them are presidents or representatives.
In the end, it's still interests.
On the 11th, the press conference before the meeting was held at the Century Tianheng Hotel, which will be held for a week, and it is the establishment of the K-pop digital music alliance, and everyone knows that this is a fight with the telecom giant SKT.
This AWM is not a joke, it is necessary to reformulate the rules of the digital music industry, determine the membership companies, unify the charging standards, expand the sales channels, improve the status of content providers, in short, change the status quo of the digital music industry controlled by the telecommunications industry, so that the lowest content providers - major record companies and manufacturers can obtain greater benefits.
This is a continuation of last year's AS War.
&nb official website, ANGELAND homepage, MELON and other websites are synchronously live broadcast the meeting process!
I just want you to see what I'm doing, I just want to see what you know I'm going to do and you can't stop me!
All media in South Korea, even foreign media, have been reporting on this reshuffle of the share of South Korea's digital music industry, most people are paying attention to this incident, who called South Korea's entertainment industry so developed, and there are AWM and Ahn Woo in the middle, which is even more sought after by the media.
It seems that this year's reports on A and An Yuxi have never stopped.
In fact, figuratively speaking, this is like an uprising, the content providers are the exploited class, and the lifeblood is controlled by operators and service providers, but who doesn't want to make more money, but no one has the ability, or the courage to dare to challenge or resist the telecommunications giants that cover the sky, are crushed by SKT's strength!
This time it's different, someone took the lead in the rebellion, AWM Music is a new aristocracy, last year's lawsuit battle with SKT, in the end it was a draw between the two sides, but for the huge SKT, a tie means losing.
AWM Music, on the other hand, represents the interests of the recording industry, and when the majority of an industry is supporting you, the trend has become one.
Now AWM, YG, S.M are like the three giants of the music industry, through this meeting, AWM basically confirmed its position as the leader in the record industry, and YG, S.M are also stained with AWM's light to show their faces, even more expanded their influence.
As early as 2003, JYP Entertainment invested 20 billion yuan to cooperate with SK Telecom to develop the MobileArt industry......
There are three giants in South Korea's telecom industry, namely SKT, LGT, KTF, of which SKT is the leader, accounting for 50% of the market share. , dominant.
SKT's development of value-added services is in the first place in the world, and the world's first CRBT business is SKT's design and invention, which has rewritten the traditional music sales pattern in a certain way, and created a new intermediate link in the field of communication - SP service provider!
SP service providers are the bridge between operators and content providers, they get the demand solutions for value-added services from operators, and then find content providers to produce content, make relevant services and provide them to users for sale.
With the huge wealth and influence of CRBT, SKT has a huge SP supply chain, basically every day new SP content appears on the SKT mobile network, waiting for SKT to convert it into cash, which is also an important business for it to be able to knock down the old rival LGT in the shortest possible time, and even suppress the KTF Group and grow into a new telecom giant.
However, as the SP supply chain becomes larger, some problems inevitably arise.
SKT relies on profits to maintain the supply chain, but users are limited in the amount of money they can spend on value-added services. Users can't buy every new business they see, and no one buys, SP service providers can't make money, when they can't get paid here in SKT, they will naturally turn to ktf or lgt, they control the content supply, terminal sales channels, may be subject to operators, but in terms of content, they still retain the right to speak!
In order to combat competitors. It is also to strengthen the results of its own value-added business. SKT uses a bundling strategy that no global carrier can bypass, and one of the consequences of this is that many users are frustrated by it!
Then the disagreement appeared, the contradiction broke out, and A took this opportunity to set off the most concerned business war in the second half of 2006 - AS war!
Speaking of which, at the beginning of the AS war, the happiest thing was probably the record industry, and the monthly subscription service of the BUGS price war under SKT greatly compressed the income of record companies and brokerage companies in the mobile music market, but because the operators mastered the channels, and there were SP service providers controlling the intermediate links, coupled with the lack of a unified organization to manage the music copyrights of various companies in China, many record companies dared not speak out - the hegemony of BUGS is not only reflected in the monopoly of sales.
&nb Company is tantamount to doing what they dare not do, which makes many record and agency companies happy.
In fact, in response to the exploitation of operators and SP service providers, the music industry has certainly taken action - KAPP, a company made up of 83 records, The alliance formed by the brokerage company was originally to deal with the monopoly of BUGS, but unfortunately SKT shot earlier than them, and quickly acquired YMB Seoul Records, dismantling the alliance from the inside, although S.M and others took the lead in establishing MNM, but without YMB, Neowiz and others withdrew from the alliance, losing the two companies with the strongest record distribution power, the so-called MNM, almost equal to nothing.
Now, AWM Music has acquired 16 record companies, including neowiz, and AWM Music has more than a quarter of the copyright share in the music source market, surpassing SKT's YMB Seoul Records to become the largest record distribution company in South Korea......
"An Yuxi is very talented in business, I can even say that he is a genius, there is no doubt about it!"
An economic expert invited by a financial program said with a little sigh when talking about the AS war: "From the current point of view, An Yuxi's goal was a digital music platform from the beginning. YG's three companies jointly applied for an antitrust investigation against BUGS, and now that I think about it, Ahn Woo had already targeted digital music at that time, and his subsequent development was all for this goal, and he saw that he had choked the biggest lifeblood of BUGS. ”
"After the reorganization, AWM Music holds a quarter of the record rights, of course, this number is not specific, according to the latest number released by the Recording Industry Association, AWM's share is about 23%. But this is already a rather terrible number, many people pay attention to AWM's huge acquisition at the same time, ignore another thing - AWM Music signed a strategic development alliance agreement with S.M and YG at that time, and AWM Music's copyrighted music sources were also removed from BUGS on the same day, S.M's share is about 10%, and YG is about 3% , these three companies combined, almost dominated half of the sound sources, and the other effects could not be concluded for the time being, but at that time, the loss of BUGS was absolutely extremely heavy!" Speaking of last year's events, experts talked eloquently.
"The current situation has become clear, and An Yuxi's purpose has also been exposed - he is copying the content business model of the Japanese LMB!"
"Japan and South Korea have the fastest growing digital music in the world, because our high-speed mobile Internet construction ranks among the top in the world, and our broadband penetration rate also ranks among the top in the world, which brings great impetus to the development of the digital music industry. But the difference between Japan and South Korea is that South Korea leads the digital music operator, Japan is the content provider, LMB is a unified brand established by a Japanese record company, which is responsible for integrating and managing the copyright pricing of all record companies, and then unifying the commission, such a model gives the content provider a great right to speak, and An Yuxi seems to want to take such a model. ”
"So what do you think is a good or bad model?" asked the moderator curiously.
He lowered his head and thought for a moment, then shook his head: "I can't say whether it's good or bad, there have been similar organizations in South Korea before, but ......" He gestured a few times. seemed to want to say something, but in the end he didn't say it, so he had to sigh: "If An Yuxi wants to complete the transformation of the mode of content providers dominating digital music, there is a problem that he can't avoid - SKT's YMB Seoul Records, it has a 16% share, if you can't master it, or destroy its influence in the record industry, I'm afraid it will be a little difficult for An Yuxi's goal to be realized......
Once the pattern is formed, music content providers can decide the pricing and partners of copyrights, and become the masters of the market from the vassal role of operators and SP service providers in one fell swoop!
Now is not the era of high speed, limited by speed and tariffs, SP service providers are more based on solutions as capital, reprocessing the content produced by content providers, converting them into value-added services for operators, and then sharing profits through guò.
The mobile music market is the main source of revenue for SP service providers, but because of the control of the channel and SKT's dominance in this market in the past, many SP service providers rely almost entirely on operators, or in other words, on SKT.
SKT's dominance of digital music provides a good living environment for SPs, they don't have to look at the faces of content providers like their Japanese counterparts, they only need to share with SKT, and pay the rental fees to record companies, which are almost negligible.
But now that the Digital Music Alliance has been established, as long as they are not fools, anyone can see An Yuxi's purpose.
Although the month-long lawsuit with SKT did not have a wide impact in the media, it was completely different in the record industry, and the strategic alliance of AWM, S.M, and YG has become the object of the record industry's greatest attention, especially after Ahn Woo-hee's ultimate goal was revealed, various record companies almost immediately jumped out to express their support.
If An Yuxi completes his layout, then, the dominant advantage of content providers in the industrial chain will completely grasp the market orientation and choke the pockets of content production, unless SP is willing to go bankrupt collectively, otherwise it will have to suffer the exploitation of content providers.
But what if you don't complete the layout?
The alliance of &nb, S.M, and YG already accounts for almost half of the market, and even if SKT can rely on YMB to support it, the previous dominance will be completely shattered, and that is enough!