Kenny Bloom - China's Music Mogul

The music industry in China has significantlylanguage repertoire. It's what they like. The WTO
changed over the past couple of decades, from adecision is certainly not going to change the
tightly government-controlled propaganda pipelinemusical tastes of the Chinese consumers. And
into an increasingly powerful and sophisticatedwhy should China embrace western music in a
economic sector. Spearheading the way in China'slanguage they don't understand. Does the West
entertainment industry is Kenny Bloom, musicembrace Chinese music? That's a totally open
veteran of over 30 years, and Founder and CEOmarket. This has been an inane concept for quite
of VisiTek Holdings, Ltd. Born in New York City,some time, that every market has a pent up
Mr. Bloom, at age 56, has accomplished more thandemand for Western culture. In a way, it sends a
most people do in a lifetime, and he has no plansvery disturbing message that "your culture is not
of slowing his pace. To say that his list ofas relevant".
accomplishments is impressive would be a grossQ: Let's discuss the latest western invasion in
understatement.China - Google's oPhone vs. Apple's iPhone, China
A winner of the Lincoln Center Award for MusicMobile vs. China Unicom... While the iPhone launch in
Achievement at age 15, Bloom attended bothChina thus far has been disappointing, it is turning
Julliard and Manhattan Schools of Music Prepinto a new platform being seized by indie bands
Departments. He joined Atlantic Records in 1977and labels to release content and manage their
(a subsidiary of the Warner Music Group) andfan base. How will the smart phone impact the
launched KB communications in 1984, one of theChinese music business?
first entertainment marketing companies. HeIt will be a long time before smart phones are in
formed a joint venture with China Film (China'sthe hands of the "average" Chinese consumer.
film monopoly) in 1988 and secured the ChinaThey are just too expensive to have a huge
license for the Warner Music library, which led toimpact outside of business applications.
the first foreign owned PRC record companyQ: But, the Chinese are super-status oriented and
since 1949. Over the years, Bloom went on tothere is an upper-middle urban class. Why, when
produce numerous radio shows, televisionthese products are launched in China, would they
programs, concerts by internationally renownednot be successful - especially with 400 million
artists, soundtracks, and Broadway plays. He ismobile users?
widely recognized as a major player in theEven with 400 million users, you are talking about
entertainment industry.a relatively small percentage of the population
One might wonder if Bloom would be ready towho are upper-middle urban class. Out of the total
ride on his reputation for a while, coasting throughpopulation, maybe 3% can be classified as such.
the years to come after having such an illustriousAnd they're not necessarily listening to music,
career. But nothing could be farther from thecertainly not Western music.
truth. In fact, Bloom is moving faster, strikingQ: Pepsi has been making big moves in China with
harder with a bold strategy to become a leadingtheir nationally televised Battle of the Bands "Vox
content producer. Leading the charge is MOGO, aRock" and launch of their music label QMusic. Is
video site covering the emerging independentPepsi really serious about supporting the
music scene in China to the young, hipindependent Chinese music scene? And if so, is
(undeserved) urban music consumer.this a model that will have legs in China (i.e., might
I had an opportunity to interview Mr. Bloomwe someday listen to Tsingtao's latest buzz
regarding his past, and his vision for the future. Itband)?
was one of the most enlightening, thoughtIt is essential that corporate sponsors support the
provoking, and inspirational interviews I've evermusic industry. We are now seeing more of it
had the pleasure of doing.focused on rock and hip-hop. But we also need
Q: You've had over 20 years experience in thelocal media to embrace those musical styles in
Chinese music business, beginning with the launchorder to build the consumer base. Otherwise,
of Warner Music China. What are some of thesponsors won't be able to quantify their
unique characteristics that have shaped itsinvestment in music that is outside of the
development?mainstream.
For one thing, massive piracy. The only businessQ: Isn't QMusic much more than sponsorship?
left now is ringtones and live shows. That said,They're talking about developing and launching
there are more artists now then every before.new bands, like Starbucks Hear Music.
20 years ago there were half a dozen big popLet's see what they do. It's still too early to make
stars and 4 rock bands. Now there are scores ofjudgments as they have not yet started their
pop stars and well over 300 working rock bands.operations.
Q: So what's sustaining that growth in the face ofQ: I have one final question for you. Mogo is
piracy?something of a 21st century MTV-like pioneer in
Basically, live shows. The entire industry is goingChina. You are creating original and professionally
through a global transition. China is no different inproduced WebTV content (not user-generated), in
that regard.support of the emerging independent scene (art,
Q: There's been a lot of talk about the recentmusic...). That's difficult enough in the West. What
WTO decision opening the Chinese market toare some of the unique challenges you face - the
more Western entertainment, including music. Theconsumer, the government, advertisers?
RIAA reaction to the decision was to state:It's China's own home-grown music TV station
"Enhancing the ability of the U.S. creativeand all parties have been very supportive. The
community to do business in China will generatebiggest challenge we are facing is finding qualified
needed revenue and jobs to the U.S. economy."staff. Every company has problems finding
This seems to fly in the face of the piracyexperienced workers. Don't forget, the modern
problem. But having said that, do you believe thatera of China is only 30 years old with most of the
the decision will at least result in an increase in thedevelopment coming in the past 10. The word of
international repertoire's share of the overallthe day is "patience". It will all happen, but it will
market?happen on China's terms.
China's music market has a 98% mandarin