Haoting Music Network unexpectedly closed down
The collapse of Haoting Music Network reflects the embarrassment of domestic online music websites. Among the more than 500 music websites in China, none of them are truly profitable. In the context of the relevant national departments rectifying music websites, the profit model that relies on advertising to survive has also made it difficult. Since this year, a large number of music websites have been closed due to lack of copyright authorization or lack of funds.
Yesterday, some netizens broke the news on Weibo that the well-known grassroots website Haoting Music Network officially announced its closure. It is understood that Haoting Music Network suddenly shut down its services on December 28.
Haodi’s collapse reflects the embarrassing situation faced by domestic online music websites. An editor of a music website revealed to a reporter from West China Metropolis Daily that the website was closed due to copyright and financial issues.
Previously, the Ministry of Culture issued a crackdown on illegal online music websites, and Haoting was once included in the list of illegal music websites. Some analysts also pointed out that the closure of Haoting Music Network was mainly due to funding problems. It is understood that among the more than 500 music websites in China, none of them have truly achieved profitability.
Haoting Music Network was founded in 2003 and currently ranks around 5,000 globally. According to Chinalabs data, Haoting currently ranks 6th among domestic music websites.
Reason: Copyright issues or lack of funds
The closure of Haoting Music Network may be related to the previous notice issued by the Ministry of Culture to clean up and rectify illegal online music websites. This year the Ministry of Culture announced a crackdown on music websites, and a large number of music websites were shut down. Before the closure of Haoting Music Network, music websites such as Kekexi Music Network and Jellyfish Music Network had already been shut down. The closure announcement of Kexi Music Network clearly states: "This site will be closed for rectification due to lack of online music license."
As early as April 20, the Cultural Market Department of the Ministry of Culture issued a notice listing 117 companies. The list of music websites that have not obtained permission or registration includes Haoting Music Network, Qianqian Music Online, Yiting Music Network, etc.
On December 14, the Ministry of Culture issued a notice intensifying its crackdown, expanding the list of illegal music websites to 237, and ordering them to make rectifications before January 10, 2011, otherwise "they will be banned in accordance with the law." ”
However, reporters found that although Haoting Music Network appeared on the blacklist on April 20, its name was not on the list on December 14. This means that there is no factual basis for the statement that Haoting Music Network was closed because it could not pass the deadline on January 10, 2011.
Some analysts pointed out that the closure of Haoting Music Network was mainly due to funding problems. Previously, music websites such as Decibel.com and Kandao.com were closed due to lack of funds and lack of investment.
Dilemma: The advertising model is difficult to make a profit
Currently, domestic independent music websites are struggling. On the one hand, there are policy monitoring risks, and on the other hand, they have to consider their own profitability issues.
According to the reporter’s understanding, among the more than 500 domestic music websites, none of them are truly profitable. Decibei.com, which once popularized "Mouse Loves Rice", still had no choice but to close down after absorbing $8 million in venture capital from IDG.
The dilemma faced by personal music websites is that their profit model cannot bear the investment in website building. It is understood that the current profit model of music websites is to increase website traffic by users downloading free music, and attract advertising based on traffic. Advertising revenue accounts for about 80% of the total revenue of music websites, and the other is membership fees.
In order to attract attention, many music websites have taken a step back and uploaded vulgar and alternative music to attract clicks, not to mention links to pirated music. Because of these two points, music websites have attracted countless lawsuits and attracted heavy blows from relevant departments.
Haoting Music Network is praised by music fans for its few advertisements, fresh interface, and comprehensive music library. However, the lack of advertisements shows that the website’s profitability is not ideal, and Haoting does not have a relevant charging system, and it has no profit. Investing in a website can only be done by a clever woman.
Industry insiders believe that the death of a large number of personal music websites may mean that the era of free music enjoyment on the Internet will be over.
The way out: switch to wireless terminals to find a breakthrough
At present, most websites make a living from advertising. Why are the advertising revenue of music websites not ideal? Some netizens analyzed that everyone listens to music instead of watching music, and advertisements are necessary to watch. This has led to the fact that music websites cannot make ends meet just by relying on advertisements.
However, some experts suggest that digital music is still profitable, and moving to wireless terminals such as iPods is still expected to make a lot of money. At present, the main source of income from China's online music is wireless music. In 2009, wireless music revenue was 1.84 billion yuan, accounting for 91.5% of the online music market, which is beyond the reach of online music.