Canadian music mogul takes on China
Source: AFP July 21, 2008 The Baidu model may also be the template for others as earlier this year the Wall Street Journal reported that Google wished to partner with major record labels to release free music in China.
McBride said this approach is much more effective than the fervour for litigation, and cited the example of Napster, the hugely popular US music sharing site that was sued into oblivion instead of being harnessed as a new revenue stream.
For him, the solution has been to hold copyright in one place, on the artist’s own record label or “imprint,” and while he welcomes free exchange of music, copyright remains at the centre of his strategy.
“If you have collapsed copyright sitting in one place it has more value than if it is fractured,” he said on the sidelines of the recent MusicMatters conference in Hong Kong.
“(Then) you can give one part of the copyright away gratis in order to monetise another part of the copyright.”
In this way, the song becomes a loss-leader that advertises other selling opportunities, he said.
Success follows from innovative use of the song’s long-term value " as background music for advertisements or television shows; sales through protected technology such as mobile phone ringtones; or website advertising.
McBride said this business model, which he set up three years ago, has already begun to work for his company, Nettwerk Music Group, with seven of the eight “imprints” he started now showing profit.
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