China has undeniably become a major competitor in music on the global stage. It is the 2nd biggest Asian music market, only just behind Japan and now the 5th biggest global market having passed France in 2023. To understand China’s digital landscape is to know how essential China is to establishing your fanbase in the global market.
The role of social media and current copyright policy and greater visibility of the thriving underground music scenes like with the advancing electronic music scene have advenced the market unlike anywhere else.
The distribution model is different, unlike in the west the streaming platforms like Netease and QQ act as distributors. This affects the dynamics of the market for independent musicians and labels. Mature indie labels such as the Taihe Music Group remain essential in distributing music with their long time experience in the indie scene, holding more influence in representing content to the market.
Unlike in the west there are many types of paid and free users, allowing more types of listeners to access content, essentially bringing more value to the content as they are converted to higher paying users. The market earnings from recorded music increased more than 28% in 2022 with streaming having 89% of that share.
Global streaming revenues increased over 10% by the end of 2022 to $12.7 billion with 589 million paid users. Tencent with its three platforms – Kugou, Kuwo and QQ – leads the way in China with over 106 million paid users.
Kugou Music tends to attract an older audience, generally over the age of 35. QQ Music, on the other hand, appeals to a younger crowd, typically between the ages of 23 and 28. Listeners between 18 & 23 years old tend to choose Netease music to satisfy their preference to indie music with nearly 206 million monthly active users and more than 44 million paid users.
The number of short video users was more than 1 billion by the end of 2022 this means that more that 70% of the whole country has accessed short videos dominated by the platform Douyin with over 600 million users.
Live Music Scene
The live music scene just opening last year is a shell of it’s former glory after covid. Though foreign artist have started to return the demand is smaller from the extent of venues closing down during covid. Budgets are tight until the live scene has time to grow.
Variety shows are a center of music discovery bringing much indie music to the mainstream. By hosting indie performances they have brought a spotlight on the underground scene for advancing genres like electronic, rap and folk, as well as others.
Social Media In China
The social aspect, on the streaming platforms like Netease and QQ music, of music consumption is crucial. Unlike the platforms in the west, in China they act as both social networks and streaming platforms, like a fusion of Instagram and Spotify.
China’s social media ecosystem is separate from most of the world due to internet regulations, regardless of the absence of Facebook and Twitter, it is the world’s largest social media market.
Social media is deeply rooted in Chinese daily life with platforms like WeChat and Weibo that function as “Super Apps,” providing digital environments to manage all entertainment and practical aspects of daily life.
Unlike K-pop which is a genre unto itself, C-pop is a broad term that includes various distinct genres of popular music from China, showing that foreign content to still has time to influence the listeners and leave a lasting impression.
Take Away
Consider China’s music market:
- The strength it holds in the global music playground, to have your music there through the right channel, now for the future.
- Its demand for new music, and the high value placed on new foreign content.
- Listeners are much more socially active, engaging more with the music and artists, though comments.
- Find the best path to position your content to the market, to get the greatest value.
Sources
https://technode.com/2023/03/03/short-video-users-top-1-billion-in-china/
https://globalmusicreport.ifpi.org/
https://www.giglifepro.com/articles/market-report-china
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