Fri, Apr 05, 2002 - Page 1 News List

Taiwan's music industry mourns lost profits

INTELLECTUAL PROPERTY The nation's music industry could die off within five years if steps aren't taken to combat piracy, recording executives have warned

By Joyce Huang  /  STAFF REPORTER

Pop stars from across the Asia Pacific, from right to left, Hsiao-S and A-mei of Taiwan, Sun Yanzi of Singapore and Jacky Cheung of Hong Kong pause for a minute of silence during yesterday's anti-piracy parade organized by the International Federation of the Phonographic Industry.

PHOTO: CHIANG YING-YING, TAIPEI TIMES

They're mostly known for their catchy love songs, the ballads for the new boyfriend or the relationship that just went bad.

But yesterday stars such as A-mei (阿妹), CoCo Lee (李玟) and Karen Mok (莫文蔚) who gathered at Chiang Kai-shek Memorial Hall weren't peforming the infectious Mandopop tunes that have made them popular.

They were singing the blues.

According to recording industry executives, the nation's music industry could die off within three to five years if steps aren't taken to stamp out piracy of intellectual property.

Taiwan -- a creative center for Chinese-language pop music -- used to boast the second-largest music market in Asia. Sales in 1999 were more than NT$10 billion.

But since then revenues have dropped to a mere NT$5 billion, and music executives say the piracy of copyrighted material is mostly to blame.

"If substantial action is not taken to stamp out CD piracy and the illegal downloading of MP3 files, the music industry could very possibly follow in the footsteps of the local movie industry and disappear altogether within the next three to five years," warned Robin Lee (李瑞斌), secretary-general of the Taiwan chapter of the International Federation of the Phonographic Industry.

Other industry professionals note that the decline in sales resulting from music piracy has forced budget and production cutbacks.

"Annual losses of NT$400 million to NT$500 million have forced us to cut back on production costs by one third per album," said Steven Fan (范智超), a director at Universal Music.

Fan said Universal hasn't been able to afford top-tier video directors, cover photographers and stylists for its artists because of the cutbacks.

To be sure, last year's economic downturn may also have contributed to sagging music sales.

Still, many in the music industry have no doubts that sales of their multi-million-dollar productions are being hurt by pirates equipped with the latest technology to manufacture flawless reproductions of their work.

"Singers are greatly perplexed whether their efforts to promote albums will actually help copyrighted or pirated record sales," said Teng Kung-chang (鄧孔彰), a promotion manager at EMI in Taiwan.

Singer Karen Mok joked that while piracy is a form a flattery, it's still upsetting not to be compensated for her artistic endeavors.

"You should start worrying about your career if you don't find yourself, your works, available in pirated form. At the same time, you are pissed off as well," Mok was quoted as saying.

Teng said Mandarin pop music is all that remains of Taiwan's entertainment industry. If the nation's music culture isn't saved, its entertainment sector is doomed.

According to Teng, heavy losses at EMI have forced the company to cut salaries for directors by 10 percent to 20 percent and lay off more than 30 staff members.

Sony Music Taiwan -- with its line up of stars such as CoCo Lee, Karen Mok and Wang Lee-horm (王力宏) -- managed to reach NT$1 billion in sales last year despite piracy.

But Sony estimates sales could have been double that amount if it weren't for the rip-off artists pirating the works of its stars.

Because of lost sales, Sony's is less willing to support artists that aren't considered bankable acts.

"We're very cautious now about releasing albums," said Adam Tsuei (崔震東), managing director of Sony in Taiwan. "If we don't think the album will sell, we will abort the production plan."

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