A few months ago, as part of their Maximum Exposure edition (Sept 26th 2009), Billboard magazine sat down with Outdustry’s Ed Peto to find out 5 good ways to build a bit of presence for your artist in China. Here, printed in full, is the resulting piece by Jonathan Landreth.

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.

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6Ed Peto, Interview, Staff Blog, China Music Industry, China Market Entry, Large, Outdustry Media, China,

Chris Anderson has just published his latest book “Free : The Future Of A Radical Price”. In it the Wired Magazine Editor and bestselling author of The Long Tail discusses the economic peculiarities of a world in which goods, services and media are increasingly being made available for what feels like free: How has this happened, and what does it mean going forwards for us both as consumers and producers?

As a market where digital content has largely been free from the get-go, China is an obvious case study along with other developing nations such as Brazil. Chris has therefore devoted a chapter to these markets, looking at how people are dealing with such realities.

I met Chris for breakfast during one of his research visits to China towards the end of 2007 and, amongst other things, outlined the basic concept of MicroMu (不插店) to him a good 8 months before we actually got round to trying the idea out. A year and a half later (and a year into the MicroMu project) and our copy of Free arrives through the post, complete with a whole page devoted to MicroMu as an example of an experimental free music model:

“The moment you put a fee on accessing music in China is the moment you cut off 90% of your audience,” says Peto. “[Paying for*] Music is a luxury for the middle class in China, a flippant expenditure. This model works against that. We simply use free music and media as a way of saying that ‘everyone is welcome’, building a dialogue, building a community, becoming the trusted brand of the grassroots music movement in China. To do this though, we have to become all things to all men: record label, online community, live events producers, merchandise sellers, tv production company.”

*Just to clarify: It is the idea of paying for music and not the idea of music itself that is a luxury for the middle class. The words “paying for” were not included in the original text.

The pressure is on to deliver! Many thanks for the mention Chris and good luck with the book launch.

6MicroMu (Buchadian), Project Blog, China, Outdustry Media, Ed Peto, Large, China Music Industry,

Last weekend I attended SPOT Festival 2009 in rainy/sunny Aarhus, Denmark. The organisers kindly flew me in, along with a number of other international music industry types, to soak up some outstanding up-and-coming Danish artists as well as generally spew forth about our respective markets.

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.

6Staff Blog, China, China Music Industry, Ed Peto, Medium, Outdustry Media,