In an article on Portfolio.com, South Korean music impresario Jin-Young Park discusses why the CD is dead and what music companies need to do about it.
“In meetings with music labels here, they talk to me about releasing albums,” says Park. “They can’t accept that there’s no such thing anymore. Where I come from, CDs are nothing—they’re just souvenirs. I tell them, ‘Wake up!’”
South Korea is in many ways like America—America 40 years ago when rock was big and labels were booming. Back then, like South Korea now, the U.S. music industry was heavily focused on live performance, the release of hit singles, and the active cultivation of loyal fan bases through direct promotional activity. It’s the artist as brand: In South Korea, consumers don’t buy music; they buy a product relationship that reaches across every media platform and entertainment genre.
Biggest difference between US and South Korean markets? In South Korea, 80% of computers are linked to high speed cable. In the US, broadband penetration is only around 50%.
For Jin-Young Park, music sales are nearly a rounding error. It’s everything else that creates the success. According to a report from the Korea Times and business portal Chaebul.com, Jin-Young Park Entertainment generated $16.3 million in revenue in 2006 and $10 million in the first six months of 2007, of which music sales were the smallest part. The report estimated the company to be worth in excess of $100 million, making it the most valuable independent entertainment company in South Korea.
Music Impresario Jin-Young Park — Executive Articles — Portfolio.com
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