China, the country with worlds largest population and therefor a very large and attractive market is still suffering from a high piracy rate. Almost 90% of the CDs sold in China are pirated. This however doesn't stop Sony, who will be building a CD manufacturing plant in Shanghai.
The production plant should also be able to decrease the piracy level and increase sales in the country. Unfortunately now details were given how this should happen, besides the possibility to lower the prices on the Chinese market.
"The music industry is one of the few sectors that has not caught up with international standards after China joined the [World Trade Organisation]," Andrew Wu, managing director of Epic Music, said at ceremonies marking the new plant. "The industry is still suffering from piracy." |
Indeed, on the streets of Shanghai, pirate versions of popular discs sell for about 10 yuan (HK$9.38), up to 15 times cheaper than a genuine version.
Mr Wu was short on details of how the venture might circumvent piracy. He said it was capable of turning out 12 million CDs a month.
Sony Music International chairman Robert Bolin said: "The cost should be lower since we can avoid shipping costs and duties.
Mr Bolin, too, dodged questions about how the company hopes to compete for sales in a country where economics of scale cannot reduce prices to as low as bootleg copies of varying quality.
Of course 10% of the Chinese market is still a big amount of legal buyers, but if Sony thinks it will get more legitimate buyers they should think why people are pirating. Read the entire story here.
Source: Asiamedia
