| 19 Jan 2022
Dealing with Asian consumers: UMGÆs Max HoleÆs formula at Music Matters

SINGAPORE: India, China and Indonesia are going to emerge as key markets for the global music majors going forward. That was the view of Universal Music Group International CEO and chairman, Max Hole at Music Matters at the Ritz Carlton Hotel in Singapore on 22 May. Hole candidly stated that the music industry has made 80 per cent of its revenues from about 10 countries; and whatever it has made in Asia has been with artistes from outside the region. He added, "In the next 30 years, I believe this has to change. The 80/10 split is bad for business, bad for artists and bad for fans. The real opportunity is turning the 80/10 into something more evenly balanced."

He pointed out that with 60 per cent of the world’s population, Asia contributes a measly below 25 per cent share of music sales, most of them coming from Japan. But with digital spreading in Asia, there is a good chance for the music majors to develop the music ecosystem that reflects is scale and population.

Hole pointed out that China with its billion plus people has bypassed the old music industry model of purchasing music in its physical or digital format and has straightaway moved to accessing music tracks via streaming. "We are in the middle of an exciting transition and it’s very exciting to be a part of it," he said, "as it presents the opportunity to come up with new business models."

He pointed out that the need of the hour is to nurture and develop local music talent and help them realise the potential from their musical talents. "But we will have to work closely with local business partners, regulators and businesses to make this happen," he said, referring specifically to China. "If we deliver good Chinese music in an environment where it can be bought easily, cheaply and legally, then we will all prosper."

"Now is the time to innovate, take some chances and truly welcome the digital revolution," said Hole.