THE CICAK.com

PART 1: Future of Malaysian music on Mp3

By NG KHAI LEE

If you created music for a Malaysian audience, how would you market it? Would you sell your mp3 tracks online, stick to CDs, or do both?

The debate rages on for independent and mainstream music artistes, music producers and record companies. But one man has made his choice.

Zainal Abidin will launch his next album exclusively on the Internet, through a music portal that has yet to prove its worth - TM Net’s next iTunes.

This article is a summary of reactions from industry observers. I share my personal comments in PART 2.

First of all, what do you think? Some say he is crazy, but Zainal thinks otherwise. He says, “Off-the-shelf album sales have plunged by 70 percent, and when the new generation want music, they download it.”

He is not a dummy. Zainal has been around for a long time, and perhaps longer than some of our fathers. He is, in fact, one of the forefathers of contemporary Malaysian music.

So, does “father know best?�

Zainal’s strategy to sell his music online-only can be seen as a premature move, as there are many barriers that prevent a critical surge of Malaysian online shoppers. The Malaysian Communications and Multimedia Commission reports: broadband Internet only penetrates 2 percent of the country’s population.

Is Zainal’s target market within that 2 percentile? Even if the answer is yes, would his fans warm up to online credit card transactions?

If TM Net makes downloading legal music super easy, it would benefit Zainal to leverage on their far-reaching network of resources, and strategic alliances.

However, despite the availability of legal options, piracy will still be a problem. And because all of Zainal’s new songs are MP3s, it would be easier for freeloaders to trade his music via P2P file-sharing programs.

In addition, by releasing albums on the Internet, the one lingering bastion of value against pirated downloads will be eliminated – CD inlays.

Music think tank Akademi Industri Muzik Malaysia, which organises the annual Anugerah Industri Muzik awards, is willing to take a chance.

“Someone has to do something different. The conventional way is not working,â€? said AIM chairman Aziz Bakar. “Established artistes like M. Nasir and Zainal are frustrated with not finding their products in certain shops because retailers are afraid to take a chance with new albums.â€?

He added that the figures make profitable sense - 2 percent broadband penetration in Malaysia equates to 450,000 people. The music company would sell 9,000 copies, if it sold MP3s to a measly 2 percent of 450,000 net users.

Relatively popular music artists make an average sale of 8,000 copies, according to an EMI music executive.

Sales aside, a forecast of profits may suggest favour toward the online model, as digital distribution costs less compared to physical CDs, depending on how much the mp3s will cost.

…. See Part TWO
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NG KHAI LEE is the Web developer and promotions manager of theCICAK. He fights for the Malaysian music scene with a Bazooka. See it in action, or visit his site.