Business Closed Loop: Starting with Ringback Tones to Take Down Giants

"Have the detailed rules of the 'Self-Discipline Convention' been issued in the name of the China Audio-Video Copyright Association?"

Teacher Gao sat upright in the center of the stage, toying with an unlit cigar in his hand.

"The detailed rules for KTV copyright fees are the most extensive, and that will be handled by Taihe Wheatfield."

"We, Huayi/Kongque, will be responsible for the background music for variety shows, commercial performances, radio and television programs, music talent shows, and variety show background music."

"Radio chart rankings, physical record releases, and music awards are all handled by Warner/Rolling Stone."

"At that time, everyone will have to help out."

No one was talking about the newly issued detailed rules, nor was anyone mentioning the panic and curses currently sweeping the industry.

Those things, like the honking noise of cars downstairs, can't get into this twenty-story building.

Two weeks is enough time for the maintainers to understand the rules.

……

Old Qian, the producer of a certain TV show called "I'm Not Cool, I Don't Show".

He yelled at the post-production supervisor, "What did I tell you?"

"For artists who are not members of the China Music Copyright Association, all solo shots showing their faces will be cut!"

"You can't even mention her name, so how come you still have clips of her singing?"

The person in charge looked troubled: "Producer Qian, her performance was the highlight of this episode, it would be a shame to cut it."

"What a pity? Aren't the viewership ratings a pity? Aren't the sponsorship deals a pity?"

Producer Qian slammed the cooperation agreement on the table.

"Don't you understand who sponsors us? It's Universal, not these ordinary people."

"If any artist who isn't affiliated with the China Music Copyright Association (CMC) appears on this variety show, even top-tier singers from record companies will not be accepted for the next season!"

He understands better than anyone that the lifeblood of a music variety show lies in the artists and resources held by top record companies.

New, unconventional contestants have emerged; they'll either become their artists in the next episode.

Or not?

Cut.

Without big-name celebrities to support the show, there are no sponsors, no viewership, and the producer has to pack up and leave.

The next one understands the rules better than him.

He didn't even need to wait for the record company to give orders; he proactively implemented the rules to the extreme.

The current system of film censorship.

Old Qian personally oversaw the post-production: "Cut out this close-up shot and replace it with the judges' reactions."

"Here, we'll cut in the host's commentary from the side stage to make it four minutes long."

"Quickly check if this song is registered with the China Audio-Video Copyright Association. If not, notify them to re-record it."

"If you don't want to come, cut it out. Don't show your face. Just insert your name in the background and you're done."

When he finished editing, he looked at the chaotic footage and couldn't help but feel a pang of regret.

But half a month later.

Details of the next season's collaboration sent by Universal.

That slight feeling of regret vanished instantly.

He just wanted to keep his show and his job.

……

Lao Liang, the director of a music radio channel, gave a firm order at the department's morning meeting.

"Starting today, all music programs during prime time will be prohibited from broadcasting works not created by the Music Copyright Society of China."

"All songs for charting must come from the Music Copyright Society of China's (MCSC) member library; there cannot be a single exception."

A young editor couldn't help but raise his hand: "Director Liang, there are several new original online songs that have become very popular recently."

"Several listeners call in every day to request our services. If we don't broadcast them, our listenership will drop."

"Drop it? It won't drop if we don't broadcast it!" Old Liang made the decision.

What makes a music radio station prestigious? It's exclusive interviews with top singers and the exclusive premiere rights to new songs from leading record labels.

It's where fans compete to support their idols on the charts.

Without these, why would listeners tune into your channel?

The record company made it very clear that top-tier singers only work with radio stations that strictly adhere to their self-regulatory agreements.

As for those original songs that went viral online? And those independent musicians who didn't join the association?

One person taking on a whole group of artists from the company?

He even took the initiative to increase the restrictions on his subordinates, prohibiting them from airing not only during prime time but also during non-prime time slots in the early morning.

He wanted to show his loyalty to the record company and let them know that he was the most law-abiding member.

……

Mr. Jiang, the regional manager of a certain area of ​​the KTV song selection system.

"Old Zhang, let me tell you the truth."

"By midnight tonight, if you haven't signed that copyright agreement with the China Audio-Video Copyright Association..."

"We have to remove all songs by members of the China Audio-Video Copyright Association from your system."

Old Jiang sighed, "It's not that I'm forcing you, but if I don't take your content down, our entire system will have to be taken down."

Old Zhang, his eyes red, slammed his fist on the table: "You charge me hundreds of thousands of yuan in music library fees every year, and now you just take it all down like that?"

"That lousy agreement from the China Audio-Video Copyright Association costs hundreds of thousands of yuan a year in copyright fees. Can my small business afford that?"

"Besides, it's just a preparatory team; they don't even have the qualifications to charge fees. If I pay and problems arise later, who will take responsibility?"

"I can't control that much," Old Jiang retorted, losing his temper.

"Brother Zhang, I'll just ask you one question: are you paying up, or will your music library be emptied and you be forced to close down?"

What is the Achilles' heel of KTV system providers?

It's the music library of a top record company; with just a word, they can remove all the songs from the system.

At that point, he, the regional manager, will have to get out of here.

As for the fate of these KTV owners? As for whether consumers can sing the songs they want?

The Music Copyright Society of China (MCSC) just issued the requirements, without even explaining how to implement them.

He then issued an ultimatum to all the KTVs he was working with.

They are the system providers, and they are also the most compliant with the rules.

……

A commercial performance company.

Boss Zheng was looking at the performance permit when the door was pushed open and a representative from the partner company came in.

"Old Zheng, have you finalized the artists for next month's variety concert?"

Old Zheng nodded: "It's almost done, just waiting for confirmation."

A representative from the partner company handed over a piece of paper: "This is the list of recommendations from the China Audio-Video Copyright Association."

Old Zheng took a look and saw that they were all artists from big companies.

"What about the ones we found ourselves?"

The partner representative smiled and said, "Old Zheng, have you thought this through?"

"If you use a non-member account, you won't be able to invite any of the big companies' artists next time."

"Not a single one! We can't get one!" the partner said, emphasizing each word.

Old Zheng looked at the paper without saying a word.

The partner's representative patted him on the shoulder: "I know that those small companies also have good prospects, and they're cheaper."

"But we're in business, not charity, right?"

Old Zheng put the paper down.

"Okay, let's do it this way."

……

A privately-run award, Secretary-General Lao Cao.

The judges pushed open the door and put a stack of application forms on Lao Cao's desk.

"Secretary Cao, would you like to take another look at this batch of submitted works?"

Old Cao didn't even look up: "Just put it there."

The judges didn't leave.

Old Cao looked up: "Is there anything else?"

The judge pointed to the stack of forms: "These are from independent musicians."

"I listened to the works, they're really good. There's one called 'West Sea Love Song,' the lyrics and music are both excellent, it would be great if it could be nominated..."

"From the China Audio-Video Copyright Association?"

The judges were taken aback: "What?"

"I'm asking you, are they members of the China Music Association?"

The judge looked down and flipped through the list, then shook his head: "No, they are all independent musicians, not members."

Old Cao nodded, picked up the stack of watches, and tossed them aside.

The judges' expressions changed: "Secretary Cao! What are you doing?"

"Isn't this award meant to encourage good original music? It's such a shame they don't even look at it!"

"What a pity?" Old Chen leaned back in his chair. "It would be a pity if the award couldn't continue."

He stood up and walked to the window: "This year's main sponsor is Taihe Wheatfield."

"Chairman of the Jury, Music Director of Warner Music."

The judges opened their mouths.

"Guess what will happen if we don't listen?" Old Cao turned around.

"The sponsors have withdrawn, the judges have resigned, will you still be able to see this award, which has been running for almost ten years, next year?"

"If these companies say their skills aren't good enough and then they don't participate this year, will we even be seen next year?"

The judges remained silent.

Old Cao returned to his desk, took a document from the drawer, and pushed it in front of the judges.

"Take a look at this."

The judge took it; it was the newly printed "Registration Instructions." He turned to one of the pages and froze.

"Only member units and collaborating artists of the China Music Copyright Association are eligible to apply."

Old Cao sighed.

"I stopped them at the source to avoid making things difficult later."

……

Old Chen from Kongzhong.com was demoted to a corner to look at documents.

Watching the increasingly intense condemnations and flame wars on the internet.

Looking at this "Self-Discipline Convention"

Old Chen sighed, "To monopolize the market, they've even lost all sense of propriety."

This was never aimed at the outlier Xianming; rather, it set up a whole threshold for entry into the industry.

Music Association.

It has no legal effect whatsoever, and there isn't even a plaintiff in the lawsuit.

"They don't even have to lift a finger, they don't have to get involved themselves."

"If ringtones are canceled and physical CDs are gone, then all that's left is to bleed our competitors dry."

"Even competitors have to follow the rules when they're eating leftovers. Those who don't want to follow the rules will be eliminated after being screened out using five criteria."

"This is the true power of distribution channels."

Old Chen shivered.

"Do you have any ideas at all?"

He recalled that confident, calm young man; they were a group of young people who were ignorant of their own limitations.