Music application worry: Difficult to break the profit dilemma into the "spell Dad" mode

Tencent Science and Technology Zong September 10 reported that 10 million dollars of money to want to start a business, is to do electric business applications, or do social applications, or do picture sharing applications? If you are because of fancy music is the rigid demand of mobile internet users, so that the choice of mobile music application Entrepreneurship This road, you need to remind you that this is a "road to slavery." "When it comes to social applications, costs come from human and basic hardware purchases, and the rest of the money can be used to promote it." But for music or content companies, the first thing to do is to pay nearly half the cost of copyright, and then have to take 10%-20% of the money to pay the huge volume of music content flow costs. Storage problems can not be ignored, which requires more than 4-5 times the same type of entrepreneurial server. In other words, when entrepreneurs use the same money to start a business, 70% of the money may have been consumed at the start. Next, in the back-and-forth cycle of buying copyright-advertising fees-and buying copyrights, mobile music start-ups enter a period of struggle in shackles. For mobile music applications, this situation has been in the past few years, but this year's situation has exacerbated its survival dilemma. Music copyright chaos is still in the slightest sign of development in the direction of the norm; in the era of mobile internet apps for everyone, the internet giant has almost all the entrances, and there's nothing left for free promotion. "Music royalties have risen several times this year, and they are all about music downloading fees," he said. "A mobile phone music application in charge of Tencent Technology complained," music fees this matter has not yet become, but the copyright party has increased prices. "Everyone is in a tight cash flow, especially if the client has no PC-side mobile music apps, and many are seeking financing or seeking acquisitions." "said the person. Mobile music applications are generally divided into several categories: One kind is Tencent, Baidu and NetEase Internet company's music application extends to the handset end; second, cool dog and so on to enter the music industry earlier company to do mobile music application; third, shrimp, DOM, every day, such as pure mobile phone music applications; four is watercress FM, Jing, Listen to many other radio applications. Many mobile music applications from this year began to enter the merger shuffle period. Earlier this year, shrimp music has been bought by Alibaba. The latest A8 music was bought by 360, but the news was immediately A8 officially denied. A8 's multi-meter music staff also denied the news of the takeover. "A8 and 360 messages may also be carried bidding through 360, but are not sure at this time. People familiar with the matter said. "Mobile music apps don't have much to live with, but only a few, others may die." These rely on the size of the user is large enough, advertising revenue good enough, while making advertising fees, while spending huge sums of money to buy copyrights, earn a little difference. "Sing," said CEO Chen. Being bought by internet giants is almost the only way out. In the future, the ultimate state is the mobile phone music application to become the standard products of the Giants, which inevitably makes people sad. "It is impossible to expect these big companies to make disruptive innovations in music," he said. No new independent startups want to get into this business.。 JINGFM founder Schkeven said. Copyright disorder in the Haven principle (copyright discovery Infringement-notice-delete) in the music field gradually expired, through the user upload or search links to improve the music of the way to solve the problem of music library update, the music is authentic is the meaning of the problem. But that does not mean that having money to buy can solve all the problems of copyright. Some people say that if an entrepreneur who has not previously been involved in copyright has killed himself in video or music for the first time. On the copyright issue, compared to the music copyright, a few years ago, the bloodshed of the video site can even be called happy. Since 2009, after several Mingo, video sites have reached various forms of copyright alliances that have been uniformly foreign to curb the sky-high growth in copyright prices. Music copyright has not yet come to this step, the copyright company has been the upper hand. But different types of companies have different discourse rights. From international companies such as Warner, Sony control more than 70% of the music copyright, close to the monopoly, do not worry about selling, often on wild speculations, "Want to give you, not to you can not be a way." There are some large companies such as Evergrande Music, wonderful music, usually signed a big brand exclusive artist, the price is not the same, "some give you some do not give you." "Smaller domestic companies, the contract singers are uneven, the charges are different." "I'll sue you if you don't go to him for music rights." "Since then, whether it is the competition between music applications or policy issues, music copyright has been in the direction of the legitimate, but has been very messy, leading to a lot of music start-up company's time spent on the purchase of copyright." "For example, I have 20 million can buy copyright, not money can buy, a year to run hundreds of copyright companies to talk about a lot of time and cost, economic costs, may not be able to talk about it." "said a cellphone music entrepreneur. "Money will take time to do, you have no money not to buy the copyright, they will come to trouble, let the music company pay or lose money, or even lawsuit." "The sheer profitability of the player and the music site is the real role of copyright sales channels, between copyright and advertising in the reciprocating cycle." Buy the copyright----------------------to buy "Only income from the copyright channel cannot generate additional revenue from content production." That's why they're not likely to do anything particularly big. If the price of the right to make money rises, it will always be on the verge of life and death. Music sites and pure music player apps can be hard to jump out of the income growth and copyright price increases. Chen said. Pandora can be said to be a relatively successful independent music application company, just released in the second quarter of the earnings from the same period of 101.3 million U.S. dollars rose 55% to 157.4 million U.S. dollars, but the loss of 7.8 million U.S. dollars, than the same period last year to increase the loss limit 44.4%. "Copyright is a dynamic value." The higher the growth, the higher the copyright will be, this dilemma can not escape. Schkeven said. In the absence of the music payment download hopeless situation, the current Internet music platform to take the advertising + game profit model. But will be on the internet has beenThe proven business model extends to the mobile phone, and entrepreneurs still have to be cautious: "Users don't lack music clients, and if you add ads or fees that affect the user experience, users quickly turn to other apps." Another dimension, on the Internet, YY, 9158 has verified the show model, the fan economy is also a viable business model. Cool music, dog, all add to the Show field mode. Because of the inevitable homogenization of competition, the show field model from blue ocean into the Red Sea. "Show to rob people dug horns are very strong, competition is very fierce, dug to dig, the value of all scrambled up, and finally people do not make money." One industry insider said. Schkeven that the market is saturated and is not suitable for new companies to re-enter. For a 20-30-person start-up, there is limited manpower and no energy to do it. The Giants ' acquisition of the internet giants is the standard of music on the PC side. Tencent QQ Music in the Music standardization Services (music build, quality building and user experience) has begun to take shape, through the introduction of QQ users and micro-letter, micro-Bo and other social platforms to share, Green diamond model can be called the domestic digital music profit sample. NetEase Cloud Music Online This April, the main social applications, through the big DJ and subscribers to the way to drive the community active. But in the eyes of some musicians, this is a gimmick, not a solution to the substance of the renewal mechanism and standardized services. Baidu in a few years ago has acquired thousands of listening and other applications, and then integrated the introduction of Baidu music. This year, Alibaba buys the shrimp music, the shrimp music becomes the Alibaba Music Division part. "For Internet companies, a shortcut is through acquisitions to complete the strategic layout of mobile music." said the person. But some are pessimistic about the layout of the Giants. "Mobile music player has a number of early entry, Baidu and NetEase come in too late." NetEase music just got up, Baidu Music client has not yet. Baidu and NetEase in the mobile phone music belongs to ignore the state, not too big market. Said one industry insider. But the mobile music application also has the opportunity which the big company buys, finds suits own "the father" to survive. The current situation is that cool and cold dogs into the music field earlier, and there are games and other profits, there is no survival pressure. Cool dog and 360 have strategic collaboration, there are 360 to do support, traffic and so is not a problem. American music Time has the Taiwan KTV Association support, many music radio has a listen to do the backing, also does not have the big survival pressure. Such a fine number, the current domestic is still independent status, do not hold the thigh of the music application only Jing FM. But Jing FM is also looking for the timing of the takeover and the homes. "Don't repel being acquired, but I will pick it." Hope to be acquired after Jing brand and style can be maintained. "Schkeven revealed.