The reason is actually very simple, that is, because in the mainland, records cannot be sold.

Thinking of this, Fang Chen sighed helplessly, which is why the world generally believes that the singing skills of singers in European and American countries are higher than those of Chinese singers.

There is no way, people's album sales are millions at every turn, and Chinese singers are only tens of thousands at most, at most hundreds of thousands.

But Fang Chen doesn't think so, there is basically no gap between European and American singers and domestic singers in singing skills, and the biggest gap lies in the style and creation of songs.

This point will suffer more in the modern era dominated by the Western world view, but it is only that, it is really not to the point where the second-rate singers of Europe and the United States can sweep China.

However, is this situation caused by the fact that Chinese people don't like music and don't have music cells?

Is it because there are 56 ethnic groups in China, and 55 ethnic groups can sing and dance after drinking, only we Han people can only brag after drinking.

But in fact, it is not the case, as far as the sales of Jacky Cheung's "Kiss Goodbye" in the mainland are at least more than 10 million, but more than 99% of them are pirated.

It can even be said that 99 percent of the 2 or 3 billion CD sales estimated by Fang Chen just now are pirated.

Piracy is the biggest reason for the poor sales of Huaxia Records.

Fang Chen watched an interview with Short and Tight, saying that from the nineties to the millennium, the environment for Chinese music records was relatively good.

They sell a record for 15 yuan, and pirates sell a record for 5 yuan, and the market share of the genuine dealers is basically about 5 percent, and the remaining 95 percent are pirates.

Genuine records are sold by virtue of the week when pirated records are not on the market.

But it is with this 5% market share that Huaxia's record companies can survive, and sign a series of singers such as Pu Shu, Xiao Ke, Ye Bei, etc., and can also make some music they want to make.

In addition, the domestic record industry has also gone to Hangzhou to negotiate with pirates, hoping that pirates will wait for 10 days before releasing pirated records.

As a result, the pirate dealer confidently said, "That's not going to work! We're going to be on it in five days!"

There was no way, so the record industry begged the pirates, knew the reason, and said with emotion: "Big brother doesn't have to be like this, give us food, if we go on the record in five days, we will beat us to death, then no one will record, no one will record the record, whose version will you steal? Pirated copies must have a version to steal, right?"

When the pirates heard this, they thought it made sense, so they decided to give the dealers a week to sell their copies, and they would do it a week later.

What's even more interesting is that in China, genuine dealers never buy record production lines, and all of them rely on pirates to smuggle production lines.

What does this mean, that is, pirates smuggle record production lines from abroad, produce them for a period of time, and then they will be found and confiscated by customs.

Then the genuine dealers can buy these production lines at a very low price from the customs confiscation auction, and they do not have to spend a lot of money to buy new production lines.

In other words, in China, genuine dealers have been using the production lines left over from piracy.

As for the pirates, they don't care, anyway, their profits are much higher than those of the genuine dealers, although the genuine dealers can earn eight yuan for fifteen yuan a record, and they only earn two yuan for five yuan a record, but they can't stand their sales being twenty times that of the genuine dealers.

And as mentioned earlier, the record company is already in a better situation, and people have more or less bought a few genuine records.

Movies and TV drama companies are miserable, and genuine discs can't be sold at all.

The genuine discs on his side have not yet been released, and the pirates have already obtained resources from movie theaters and television, and they do not need to wait for the record company to release the original version before stealing it, as is the case with records.

After hearing Fang Chen say this, Duan Yongping was completely dumbfounded, and after a long time, he said, "Are you planning to make pirated CDs?"

Although he certainly does not know the future sales of optical discs in China, he still knows a little about the current sales of tapes and videotapes.

On the audio-visual street, all of them are pirated, and there are only a few genuine ones, anyway, he has never seen many genuine tapes.

As the saying goes, knowing the world knows everything, and he estimates that the sales of optical discs are similar to those of tapes and videotapes, and they are also the world of piracy.

Besides, record companies and film companies can still rely on content, or first-mover rights.

In other words, record companies can sell records for a few days when there is no piracy for the time being, and the film company can still make money from the theater.

And Fang Chen can't make money from these now, he only sells the disc itself, so he can only make pirated CDs.

Hearing this, Fang Chen's face instantly darkened, and he said angrily: "What do you mean that I plan to make pirated CDs, and I may do such an unstylish thing? And didn't I just say that I want to do everything from copyright purchase to distribution and sales, how can this be the behavior of pirates." ”

"The point is that if you don't sell pirates, how can you survive? unless you can wipe out all the pirates. Duan Yongping said helplessly, he felt that Fang Chen was really whimsical.

"Then wipe them out!" Fang Chen said categorically.

Duan Yongping was really speechless at this moment, he felt that Fang Chen was going crazy, and it was almost impossible to eliminate piracy in Huaxia.

In addition to the strengthening of legislation, more people need to raise their awareness of genuine licenses.

Perhaps, with Fang Chen's current energy, he can promote legislation in this regard, but now, do the people have such a high sense of authenticity?

Apparently not, if there is, they can't survive the little overlord, and everyone is going to buy Nintendo's game consoles.

Even, now that the country has generally regarded their little overlord game consoles as genuine, there are not many small game console manufacturers alive.

After all, sometimes cheap is the last word.

"Unless, you're selling CDs cheaper than pirates, or I don't think it's going to work. ”

After saying this, Duan Yongping rolled his eyes, he himself felt that it was impossible, could the genuine dealers sell cheaper than the pirates?

If possible, what else is it called?

I really think that singers, lyrics, composing, and recording don't need money.

"I'm just going to sell genuine CDs cheaper than pirated CDs!"

Fang Chen glanced at the phone in surprise, how did he think that Duan Yongping was like his praise, and every word was handed to his mouth.

Crazy, really crazy, Duan Yongping was really speechless at this time.

Regardless of what Duan Yongping thinks now, Fang Chen said with great interest: "This is actually still possible, first of all, we must know that although the profit margin of pirates is much lower than that of genuine dealers, because of the large sales volume, the overall profit is much higher." ”

"Since the profits of pirates are higher than those of genuine dealers, it means that there is room for operation. ”

"Then how do you solve the cost problem of buying intellectual property rights?" Duan Yongping said patiently.

"If the cost of a disc is eight dollars, and the cost of the record company accounts for five yuan, then the cost of a record becomes five cents, or even less, so that the price will not come down. ”

Let's talk about the cost of the record company first, part of it is the fixed cost, such as the salary of the employees of the record company itself, the purchase of equipment, the company's operating costs, etc., and part of it is the shared money, that is, for every record sold, one dollar or five cents is distributed to the singer, lyricist, and composer.

The former's spending is fixed, that is, it will be diluted as record sales climb.

For example, if the production cost of an album is 100,000 yuan, if only 10,000 copies are sold, the fixed cost of that record is 10 yuan, but if 100,000 copies are sold, the fixed cost of that record becomes one dollar, that is, the higher the record sales, the lower the cost.

In addition, what Fang Chen wants to reduce is the proportion of the part, from the original record to the singer, lyrics, and composition of one dollar, five cents, to one dime, or even five cents.

But you know, if the cost of genuine copies is lower than that of piracy, then after the pirated copies are killed, the entire market will increase twentyfold.

In other words, even if the singers, especially the lyricists, the composer's income will double that of the previous one.

"I don't think it's okay, no matter how you dilute the cost of the record company, the cost of this intellectual property must still exist, and the pirate does not have this cost, so you can't make the genuine version cheaper than the pirated copy. Duan Yongping shook his head and denied.

"I think it's still possible, the first point is to give full play to the ability of the large cluster industrial chain, make full use of the scale effect to reduce costs, scale effect can reduce costs, this is to be recognized. Fang Chen said.

Scale effect is also known as economies of scale, that is, the economic benefits brought about by the increase in scale, after all, some fixed costs in the enterprise are constant, so the more production, the less the fixed costs allocated to a single product, and the more profits.

When the output scale of the enterprise reaches a certain level, due to the organic combination of various production factors, 1+1&a;a; gt; 2 effect, the average cost shows a downward trend, and the assembly line is one of the manifestations of economies of scale.

For example, the scale of Xiaobawang has expanded fivefold from one billion to five billion, but Duan Yongping's salary is still two million, which has not changed, which is equivalent to Duan Yongping's salary amortized in the cost of each product, which has been reduced by five times.

Therefore, after Fang Chen expands the optical disc factory, the profit margin will inevitably be higher than that of pirates.