Chapter 358: Integrating the Music Industry!

In order to integrate its content industry, Lin Feng must first sort out the layout he has made before.

The first is the music industry.

Founded in 2002, Fengxing started as an online music company and is the earliest genuine online music website in China.

It can be said that for a long time, Fengxing initially relied on the digital music business in cooperation with Menglong to achieve profitability and dig the first pot of gold.

Therefore, Fengxing has always attached more importance to the content of the music side, and the layout is also the most complete.

The music content industry chain ranges from the most upstream content creators (musicians, artists, songwriters) to content production providers (record labels, personal music studios, performing arts agencies), to distribution channels (physical distribution: traditional video stores; digital distribution: music websites, wireless channels; concerts and derivative movies, games, etc.), and finally reaches consumers.

The core links of the industrial chain are musicians, record companies and distribution channels.

And these three links, Fengxing has been laid out early.

In terms of musicians, the original musician area of Wu Ai Music Network is now the largest gathering area for original musicians and cover singers in China, from the emergence of the initial online singers to the grassroots musician talent frenzy started by Supergirl, most of the new music creators in the mainland have also chosen to release their new songs on Wu Ai Music Network.

In terms of record companies, Fengxing's most important layout is Fenghua Records, after the merger of Birdman Culture, Fenghua Records in the following years, successively participated in Beijing Haidie Music (the mainland record label of Singapore Haidie Holding Group), Huayi Brothers Music, Modern Sky, Taiwan Fenghua Records and other companies, especially after cooperating with Shonan Satellite TV on the Supergirl project, won the record and brokerage contract of the Supergirl Singer by participating in each other with Tianyu Media, which also brought the emerging outstanding talent singers in China in the past two years under its umbrella.

However, in general, although Fenghua Records can be called the largest record company in the mainland, compared with the traditional four major record companies (Warner, Universal, EMI, Sony BMG), Fenghua still has a relatively large gap in terms of history, music copyright reserves, and signed singers.

In terms of distribution, the popularity is mainly concentrated in digital distribution, and Wuai Music Network and Mobile Business Group (formerly Menglong Technology) have almost captured 80% of the market share in the domestic digital music distribution area.

Although other SP companies are also buying digital music rights, major record companies will still choose to cooperate with Wuai Music Network for the first release of digital music.

Among the three, if you subdivide the most core, it is the record company.

Because most musicians are signed to record companies, and the rights to the music they create also belong to the record company.

And the core of the content of the music industry is music copyright!

At the beginning, when the Internet was just developing, the Internet music market did not pay attention to copyright, and there were many free and pirated online music websites, especially after the launch of Baidu MP3, which provided huge traffic support for many pirated music websites.

For a long time, free pirated music websites had a very big impact on the record industry, traditional records could not be sold, and people downloaded MP3s from the Internet, of course, this also affected the profitability and market share of genuine music websites such as Wuai Music Network.

Since 2005, because free and piracy have seriously affected the interests of traditional music distribution, the global giants have started industry-wide legal lawsuits.

Since July 2005, the five major international record industry giants, Universal, EMI, Warner, Sony, and BMG, have filed lawsuits against Baidu's MP3 service. During this period, companies under Sina, Sohu and Yahoo were all offering services similar to Baidu's MP3 search.

With a series of lawsuits in the past two years, although it has not completely curbed the piracy of the domestic online music market, it is undoubtedly beneficial to the genuine music website represented by Wuai Music Network.

Because of this, Fengxing has always maintained a good relationship with major record companies.

Although music does not have much income from the perspective of content monetization and profitability compared with content fields such as games, literature, film and television, Lin Feng is thinking about the long-term future.

Music is the language of soul communication between people, in addition to the value of music itself, but also in the fact that music is an indispensable part of other content industries, such as film and television, games, etc., if a game does not have a good soundtrack, movies, TV series do not have a good soundtrack, it lacks a soul, a component that becomes a classic.

Moreover, the data shows that music is an essential content service for Internet users.

Even in the era of mobile Internet, music apps have always been one of the most important entry-level applications.

Users are highly dependent on online music: nearly eighty percent of online music users listen to music every day, of which 30.7% listen to music 2-3 times a day, accounting for the highest proportion, and 90% of online music users listen to music for more than half an hour every day, of which 1-2 hours per day is the main time, accounting for 33.7%.

It can be said that music has become an indispensable part of life for Internet users.

Therefore, although the music business itself does not generate too much income, Lin Feng has never despised the layout of music.

In fact, in several organizational structure adjustments before listing, Fengxing has initially integrated the music business.

Fengxing Music was established, which includes Wuai Music Network, Wuai Music Client, Fenghua Records, Artist Management, Wireless Music Division, etc.

However, with the merger with Tencent, QQ Music has also been incorporated into the company, and with many shareholding companies, it still seems that the structure is chaotic and has not formed a joint force.

Moreover, in terms of industry influence, copyright, and the scale of the music library, it has not reached the height that Lin Feng expected.

After thinking about it, Lin Feng decided to start from the two perspectives of integrating the record company and the music client.

…………

With Lin Feng's current vision, small fights are no longer his style.

After reading the research report submitted by Zhao Yihua and others, he set his sights on the traditional four major global record companies.

The reason is very simple, the four major record companies have a large number of music copyrights, and for the Internet music industry, copyright is a resource and a core competitiveness.

However, the Big Four are not easy to achieve.

SONY BMG, formerly known as Columbia Records, was founded in 1888, and in 1968, Japan's Sony Corporation became a shareholder and reorganized into CBS/Sony Records. In January 1988, under the leadership of Chairman Akio Morita, Sony successively acquired CBS's film and music division, making CBS/Sony 100% Sony's music division and renamed Sony Music.

In November 2004, under the leadership of Howard Stringer, then chairman of Sinic Stringer, Sinic Music merged with BMG Music, the music division of global media giant Boardman, to form Sony BMG Music Entertainment Company (Sinic Boardman) by holding 50% of the shares.

SonyBmg has many kings and divas who stand at the pinnacle of the music scene around the world, including Michael Jackson, estlife, Britney, Beyoncé, Miley Cyrus, Arthur Kid, Jennifer Lopez, Pink Lady and other European and American ace kings and queens, and in Asia, there are Jay Chou, Mika Nakajima, Hatsune Miku, Rainie Yang, Xiao Yaxuan, Luo Zhixiang and other new era kings and queens.

However, Sony, the company behind SonyBMG, has deep pockets and is not a good acquisition target......

Like Sony BMG, with a strong background, there are also Warner Records and Universal Records.

In March 2004, Time Warner officially sold its Warner Music Group to a U.S. Bronfman Investment Group led by former Universal Group President Edgar Bronfman Jr. for $2.6 billion.

In 1991, Taiwan's famous local record company UFO Records was controlled by Warner Music Group, and in 1996, UFO Records was officially acquired, marking Warner's full foray into the Chinese music scene.

In 2000, Warner set its sights on the Taiwan and mainland markets, signing two big names in the two places, Zhang Huimei and Na Ying, respectively, and successfully created the popular little diva Stefanie Sun, plus Sammi Cheng in Hong Kong, constituting Warner's unique "Tianhou Palace". However, since 2005, with the departure of many divas, Warner Music has been much less powerful than before, and .R. and Xin Xiaoqi have supported the "diva" banner of Warner Taiwan.

Universal Music Group was originally just a division of Universal Pictures. In 1998, Universal Pictures acquired PolyGram, a company specializing in classical and pop music recordings, and merged to form the Universal Music Group today. It also has three subsidiary companies: Zhengdong Records, New Yibao Records and Shanghua Records.

In 2000, Vivendi acquired Universal Pictures, one of Hollywood's eight major film companies, and established Vivendi Universal, so Universal Music is now part of the French Vivendi Group.

Whether it is Sony, Vivendi Group or Blonnman Investment Group, they are all capital predators and will not easily sell their music industry.

On the contrary, EMI Momoyo is a very good opportunity now!

EMI EMI Records, founded in 1897, is one of the oldest record labels in the world. Formerly known as the British Gramophone Company and the British Columbia Record Company, in 1931, the two record companies decided to join forces and merge to form Electric and Musical Industries, or EMI for short.

In 2007, Terra Firma bought EMI for $4.2 billion, and new owner Guy Hanz laid off 2,000 jobs worldwide. Due to dissatisfaction with the company's new financial policy, artists such as the Rolling Stone (Listening to Song) chose to terminate their contracts with EMI, and Robbie Williams, Coldplay (Listening to Song) and others have also participated in protests or strikes, but these cannot shake the "throttling" policy of the new boss, following the closure of operations in Asian countries such as Thailand and Singapore, China has become the next target.

In March of this year, it was announced that EMI would withdraw from the Asian market except for Japan.

Lin Feng has an impression of this incident, in his previous life, at about this time, Zheng Donghan, president of EMI Asia, acquired EMI's shares in Greater China and established the "Gold Medal Gale Music Group Company", becoming the first Chinese music group to transform from an international company, and Zheng Donghan also became the first person in China to successfully acquire an international record company.

At this time, EMI Records China, because it brought together Zhang Huimei, Jolin Tsai, and Stefanie Sun, the three queens of the Chinese music scene, had taken over the name of Warner that year, and was known as the new "Tianhou Palace".

And over the years, EMI Baidai has and now signed artists including Zhou Xuan, Hu Die, Gong Qiuxia, Bai Guang, Li Xianglan, Nie Er, Xian Xinghai (these names are like thunder), Hu Yanbin, Xu Wei, Chen Lin, Yang Kun, Women's Twelve Orchestra, Hu Ge, Zhao Wei, Hua'er, Guo Lingxia (a rare singer in EMI), Zhang Dongliang, Faye Wong, Na Ying, Zhang Yu, Wu Sikai, Zhang Qingfang, Ren Xianqi, Huang Pinyuan, Tao Zhe, . E., D., Power Train, Cai Qin, Zhang Zhicheng, Ah San, Gu Juji, Gigi Leung, Leung Hanwen, Miriam Yeung, Fang Lishen, Zheng Zhongji, Su Yongkang, Dai Penny, Xiao Yaxuan, Wu Kequn, Lin Yilian, Huang Lixing, Jiang Meiqi, Hou Xiangting, Liu Ruoying, Jolin Tsai, Sun Yanzi, Qi Yu......

Its copyright resources and music library will be a great asset!

Lin Feng feels that if he can intervene in advance at this time and merge EMI's Asian business, the influence on the industry will be very great!

With EMI and the integration of the existing record companies, Fengxing Music can establish a leading position in the mainland music scene in one fell swoop!

…………

Therefore, under the personal promotion of the big boss Lin Feng, from April to May 2008, Fengxing Music, a subsidiary of Fengxing Group, made a series of acquisitions, which opened the curtain of Fengxing's intention to integrate the mainland music industry!

On April 15, Fengxing Group signed an agreement with Singapore's Ocean Butterflies Holdings, IDG, Accel Partners, SIG and other institutions to wholly acquire Ocean Butterflies Music Group for US$80 million, including its related subsidiaries in Singapore, Malaysia, Chinese mainland and Taiwan.

On April 20, Fengxing Group signed an agreement with Huayi Brothers Media to acquire 49% of the shares of Huayi Brothers Music held by Huayi Brothers Media at a price of 25 million US dollars, because Fengxing Music had previously owned 51% of the shares of Huayi Brothers Music, and after the acquisition, it will wholly hold 100% of the shares of Huayi Brothers Music Company.

On April 29, Fengxing Group signed an agreement with Zhang Xiaoyan to wholly acquire Taiwan Fenghua Records at a price of NT$150 million (about 33.75 million yuan).

Entering May, there were two successive heavyweight acquisitions in the record industry:

On May 8, Fengxing Group signed an agreement with Duan Zhongtan to acquire Taiwan's Rolling Stone Records for NT$600 million (about 140 million yuan).

On May 16, Fengxing Music signed an agreement with EMI Group (EMI Records) to acquire all of EMI's shares in Greater China (including 50% of the shares held by Zheng Donghan) at a price of 320 million Hong Kong dollars (287 million yuan), including EMI Records in Taiwan, Busheng Dafeng Music in China, and Gold Entertainment in Hong Kong.

In addition to the acquisition of record labels, Fengxing also continued to integrate the music client market.

On April 20, 2008, Fengxing Group signed an agreement with Beijing Kuwo Technology Co., Ltd. to acquire 100% of the company's shares at a price of 100 million yuan, and included the music player "Kuwo Music Box" that has emerged in the past two years.

On April 30, 2008, Fengxing Group signed an agreement with Guangzhou Kugou Computer Technology Co., Ltd. to acquire 100% of the company's shares at a price of 20 million US dollars.

On May 15, 2008, Fengxing Group signed a strategic cooperation agreement with its strategic investment search engine company, Beijing Sogou Technology Development Co., Ltd., to merge Sogou Music and Fengxing Music under Sogou, and at the same time, Sogou search engine has also become a built-in search engine for Fengxing's business.

This series of acquisitions shook the entire Asian music scene!

Even overseas media have reported on this repeatedly, and they all believe that Fengxing Group is moving from an Internet company to a large media group!

In June 2008, after internal integration, Fengxing Group issued an announcement to officially establish Funshion Music.

The Popularity Music Group includes:

Asia's largest online music website: Wu Ai Music Network.

Asia's largest record company: Fenghua Records (merging record companies such as Fenghua Records, Haidie Music, Huayi Brothers Music, Fenghua Records, Rolling Stone Records, and Taiwan EMI Records).

Asia's largest artist brokerage and entertainment company: Fenghua Brokerage (which includes Zhang Huimei, Jolin Tsai, Hu Yanbin, Lin Junjie, Sun Yanzi, Xiao Yaxuan, Tao Zhe, Li Yuchun, Zhang Liangying, Zhou Huajian...... and so on for nearly 100 artists!).

The music client software with the largest number of user downloads in Asia (250 million users): FF Music (integrating clients such as Wu Love Music, QQ Music, Kugou Music, Kuwo Music, Sogou Music, etc.).

Subsequently, Fengxing Group also announced the management structure of Fengxing Music: Zhou Yaping, chairman of Fengxing Music Group, Zheng Donghan, chief executive officer, and Yao Qian, music director.

As soon as Lin Feng, the new richest man in Asia, made a move, the wind and clouds changed color!