Baidu in the music business?

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A major reason for search engine Baidu's popularity is its efficient MP3 search function, which allows Chinese music fans to easily find downloadable files of popular music. Of course most of this music is pirated, but Baidu's responsibilities is not clear, because the files are merely located, not hosted by Baidu.

The risk of a new law, or a lawsuit that goes after Baidu's MP3 search service for intellectual property infringement is sometimes cited as a danger for the search engine that is said to have the greatest number of users in China.

However, the risk also carries with it an opportunity. Reuters reports:

China's Baidu sets up online music partnership

Chinese Web search leader Baidu.com Inc. has set up a partnership with popular Chinese-language record label Rock Music Group to provide an online music streaming service.

Rock Music will license part of its music repertoire to Baidu users for free, and both companies will share revenue from Internet advertising, they said in a statement dated July 4.

If Apple could adapt faster than the record companies to the realities of the Internet and thus take the music industry by storm, why not Baidu?

China's record companies are in dire straits: they struggle to sell even sell legitimate copies of CDs, let alone MP3s. Baidu should easily be able to sign up several record companies to make their catalogues available online.

Baidu also has the connections and home grown China credentials to work out a partnership with China Mobile that would enable mobile downloads and an efficient billing system.

Baidu and the Chinese music business: it could be the start of a beautiful friendship.

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Posted Jul 05 2007, 02:06 AM by Danwei - Media, Advertising, and Urban Life in China
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