Rampant piracy and a lack of transparency have long complicated efforts by record labels to do business in China. Still, for those willing to be flexible and patient, the Middle Kingdom could still prove to be a useful laboratory for new business models.

Relative to it’s potential, China’s music market remains microscopic. Recorded music sales totalled just $82 million in 2008, up 8% from a year earlier, according to IFPI data. But digital sales, which accounted for 62% of total music sales, provide a glimmer of hope, having surged 45% last year to $50.4 million.

Ed Peto, founder of the music business consultancy Outdustry in Beijing, believes artists must adopt a 360 degree approach to China. The man on the ground for the Beggars Group of labels, Peto works to tap a network of promoters, critics, DJs and Web entrepreneurs to position acts aiming to connect with Chinese music fans. Asked to identify the best means to promote music in China, Peto cautions that no single platform would suffice, given the China market’s fast pace: “The menu could change at any minute,” he says.

1. Land a billing at Beijing’s premiere live music event, the Modern Sky Music Festival

Founded in 2007 by Modern Sky record label boss Shen Lihui, past festival headliners included U.S. rockers Yeah Yeah Yeahs and local heroes Carsick Cars. This year’s event will be held Oct 4-7 at Beijing’s Chaoyang Park and will feature a roster including British Sea Power, the Buzzcocks, the Futureheads and Shonen Knife. Peto says Modern Sky is better organized than previous Chinese rock festivals, boasting sponsorship support, a wider range of bands and a more professional staff. “It’s not perfect, but it’s a really significant step up,” he says. Peto also suggests licensing a record to a local label first then using the fest to promote it. And don’t go shouting about politics like Bjork did about Tibet in 2008. “That incident did a disservice to everyone working hard for incremental change in music in China,” he says. “It is getting better, but she set things back five years.”

(Update: It is worth noting that Modern Sky Festival ran into some….’trouble’ this year, after the article was published. The week before the event, the organisers were told that none of the international bands would be allowed to play)

2. Hire an intern to start a discussion thread about a single or album on Douban.com

Douban.com is the most transparent, frank, witty and active collection of critical writing about music, books and films in the Chinese blogosphere. Knowledgeable music editor Xu Bo is also the guitarist for one of the capital’s top bands, the post-folk punk quartet P.K.14.

Peto says 80% of the traffic to Outdustry’s online community/record label site MicroMu comes from Douban. “It is the light at the end of the tunnel,” he says. “It’s what Myspace China wishes it could be.”

3. Make friends with Kelly ‘ZhaZha’ Cha

Cha is an influential TV/radio host educated partly in the United States whose shows on Hunan Satellite Television (”Midnight Mindtwist”), China Radio International’s Easy FM and the video channel of popular Web portal Sina.com (”The ZhaZhaClub Show”) expose fans to imported music by playing songs and discussing lyrics in English and Chinese. “She’s like a champion for Western music across a number of platforms in China,” Peto says.

4. License music to R2G

R2G is a Beijing-based online music distribution platform whose custom-built software detects illegal electronic listings of songs, then uses documentation of those posts (and the courts, if necessary) to negotiate legitimate royalty payments for future downloads from Web sites. Privately owned R2G takes a cut of the payments and thus far appears to have survived China’s Wild West environment by focusing on songs downloaded and used as ringtones and ringback tones by the nation’s 430 million cell phone subscribers. Peto calls R2G “the most transparent and Western-friendly of the music distribution sites in China”.

5. Upload a video to Youku

Youku is China’s largest online video portal. As with YouTube, a channel can be set up for free, pages customized and videos uploaded. “It is definitely worth adding Chinese and English subtitles,” Peto says. “Lyrics are very important to Chinese people, and having the translation there really adds value as the video also becomes an educational tool.” By posting a video, Chinese music fans can better appreciate a band’s over-all presentation, he says, noting that “where your music might not be particularly culturally applicable, your video might pique interest, be plucked from obscurity by the editorial team or community and hit a a feature page.”

Billboard article used with permission of Nielsen Business Media, Inc.

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Outdustry’s in-house net-label MicroMu is proud to present a special performance from it’s first international signing, Fink…..

As the first acoustic act on legendary electronic label Ninja Tune, Fink has carved a unique path as a singer-songwriter. With a background in downtempo beat production and top level remix work, his brand of acoustic music is distinctly modern while remaining deeply intimate as a live show; a formula which has seen him share the stage with the likes of Zero 7 and Massive Attack and earned him rave reviews around the world:

“Mean moody and magnificent. One of the most original singer-songwriters around.” – Clash

“…say hello to your new soundtrack.” – NME

“Surprises when you least expect it. Sort of Revolution refuses to succumb to the obvious.” - Mojo

Fink will be performing solo-acoustic for two small shows in Beijing (MAO Live on Nov 5th) and Shanghai (Yuyintang on Nov 6th), followed by a mainstage appearance at Clockenflap Festival in Hong Kong (Nov 8th).

Acoustic legend Wan Xiaoli will be supporting Fink in Beijing. Shanghai support to be announced…

Tickets 50RMB in advance, 60RMB on the door

http://micromu.com

http://douban.com/artist/finkmusic

http://myspace.com/finkmusic

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As far as Danish bands go, I particularly enjoyed Oh Land’s orchestral experimentation on the opening evening, as well as Kiss Kiss Kiss‘ danceable indie-pop on the P3 stage, with the Danish crown (in my ill-informed opinion) going to one of the best live acts I have seen in a while, Who Made Who, who rocked a packed out mega-barn of revellers on the Saturday night.

I also have to make an honourable mention of Norwegian artist Rockettothesky who’s esoteric take on song-writing – including a track about ‘horny ghosts’ – stayed with me for some time after the show, to the point where I bought her album Medea off eMusic as soon as I got home. Good stuff.

As far as me ’spewing forth’:

Video made by (and courtesy of) SPOT Festival

Thanks very much to everyone at SPOT, particularly Martin Røen Hansen and Henrik Friis, for a fantastic weekend.

© Outdustry 2009

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Modern Sky boss Shen Lihui says that “compared with the enthusiasm of the Modern Sky Festival, the Strawberry Festival will have a warmer tone….the park will be your pleasure ground”.

Organisers also suggest it will be the “biggest music festival in Beijing during the May holidays” and that the Modern Sky main festival will go ahead in October as well.

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Now, despite an incredibly tough year for music in China (due to Government clampdowns surrounding the Olympics as well as the horribly misguided soap-boxing of a certain elfin Icelander), exactly a year later and the Beijing sound has come along leaps and bounds.

I thought it was about time I follow up on that year-old post, using the medium of budget video, to bring you up to speed a little:

• The Old-Guard: The older bands are still getting better (See SUBS, Re-TROS and Miserable Faith in the videos).
• Strength In Depth: The younger bands have come on from being self-conscious mimic-artists into snarling, full-blooded outfits of their own (See Snapline and Carsick Cars in the videos).
• Public Demand: A number of festival organisers still went ahead in seemingly impossible conditions with defiantly impressive results.

While 2007 will be the year the paper-trail leads back to in terms of the new Chinese bands really starting to find their own voices, 2008 is the year they perfected them. This video of Maybe Mars‘ artists Carsick Cars (taken last weekend) shows an increasingly confident band belting out their bona-fide indie anthem, ‘Zhong Nan Hai’. I really thought very little of them when I arrived in 2006 and it has been a pleasure having my initial assessment slowly being proven wrong:

Against all the odds both the Midi and Modern Sky Festivals went ahead in some form or other. Modern Sky resorted to a strange, half indoor, half outdoor, all-concrete affair just next to last year’s Haidian Park venue. There is no doubt that it lacked the grassy festival atmosphere but there was a pleasingly rough-around-the-edges industrial feel, made all the more so by the abysmal pollution which can be seen in the opening shots of this crudely put together festival video:

The daddy of Chinese music events, the Midi Festival, moved around it’s date and venue so many times that most news sources gave up reporting on it. For better or worse at the last minute they decided to host it back at the Midi School campus. This meant a huge scaling down and a number of sound issues. Combine this with some filthy weather and you would have thought it was a washout, but outstanding Saturday headliners and Midi School alumni Miserable Faith gaily skipped through the genres – ska, rap-metal, reggae, rock-ballads – to make my one trip up there totally worthwhile, as you can see from this next video. Their set closer, Life’s Most Perfect Day, is a hard-men-go-soft ballad that would play well anywhere. Also worth noting is the bemused crowd reaction to sugary Danish pop-mongers Summerhill: Two worlds collide with indifferent results:

So all things considered this place is shaping up nicely. If the post-Olympic landscape allows for more and more live music opportunities, then the crowds and the confidence will grow. The bands are certainly getting there. The night I filmed the Carsick Cars video also featured current buzz-band Ourselves Beside Me and The Gar, making a night of Chinese newcomers who would do themselves proud in any venue in the world.

© Ed Peto 2008

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Midi claim that they would be free to go ahead but that the venue would have to remain open to joe public, obligating Midi to pay 700,000RMB a day for the mandatory use of strict Olympic security barriers. Obviously a crippling financial burden.

Festival organisers are in discussion with Haidian park, the site of recent Midi festivals, for the re-scheduled event. They are waiting to hear back from local government on this. The issue with this new venue – which also relegated everything but the main stage of the Modern Sky Festival to an indoor site next door at Haidian Exhibition Hall – is that the park is currently being used by a battery of anti-aircraft guns which were in place as, once again, part of the Olympic security measures.

What this set-back means for Air’s performance at Midi remains to be seen, although I suspect this might kill any hopes a lot of the international bands have to play the festival.

© Ed Peto 2008

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The sad thing is that they have been forced to go head to head, time-wise, in most cases asking the limited pool of acts for exclusivity. They are also both largely taking place indoors – Modern Sky in Haidian Exhibition Hall and Midi in The Olympic Centre – making for an all the more surreal and stilted affair.

Modern Sky have already announced a full line up which is conspicuously free of foreign acts, as has been rumoured for some time now, namely :

While Midi, who have actually yet to officially receive a license (they said in a statement on Sept 12th that the government had ‘approved’ and that they would be getting their license on Sept 16th ie. Yesterday), have erred on the side of caution and gone for the more austere promotional flyer, without line-up, below:

This cautious, patient approach may have paid off as it looks like Midi have secured a license for their international bands this year. The obvious excitement here being the inclusion of downtempo-maestros Air in the line-up. The French duo already have two Yugong Yishan shows here in Beijing with the oft asked question being ‘why don’t they just stay on and play Midi’. Well, it looks like they are:

Here’s looking forward to what should be a really entertaining month of live music. Good luck to both festivals. Real lessons in persistence.

© Ed Peto 2008

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