With the unprecedented rise of China's movie industry, and the vast wealth that has been accumulated by some Chinese entrepreneurs, doing business with Chinese partners is now a part of what it takes to be a mogul in Hollywood.
But, in the last couple of years, even the most experienced Hollywood deal-makers have found that doing business with Chinese partners can be... challenging.
I'm not saying that more due diligence would have saved former ICM topper, agent Jeff Berg, from embarrassment. But when Berg announced that his free-spending Resolution Agency had obtained much-needed financing from Bison Capital, a Chinese partner... there were some of us who were not entirely caught off-guard when Berg's supposed bridge to China rapidly collapsed.
Here is a link to some (beginner level?) tips on avoiding similar embarrassment.
QQ Music Had RMB Billions in 2015 Revenue and Is Profitable: Maybe Spotify Just Isn't Doing it Right?
Spotify showed a net loss of close to US$200 million last year, but, according to a July 29th, 2016 post to Mashable, "China's version of Spotify, QQ Music, is actually making money."
Well, first, back in 2014, Tencent, owner of QQ, used its vast active user base (in 2014, around 500 million active monthly users, now - mid-2016 - that number is roughly 700 million active monthly users) "to its advantage, striking exclusive Chinese distribution deals with large music producers the likes of Sony, Warner Music and South Korea's YG Entertainment."
"[T]he majority of Chinese users are [already] plugged into [QQ's] ecommerce system, where they already buy tickets and book cabs cashlessly through WeChat. This allows QQ Music to offer products like concert tickets, providing an additional line of revenue to its freemium model of advertisements and paid subscription."
And in the future?
Expect Tencent to grow their digital content subscription services via continued leveraging of its social platforms and stores and by expanding its dominance in premium digital content (that already includes video, sports, music, news and literature) by merging QQ Music with two other bigtime Chinese music services, Kugou and Kuwo.