Digital Content Product Sales

Creating and Selling Digital Content

Leyi Culture can distribute and sell digital media content (music, video, TV, movies, etc.) on its own sales platform and through all major digital music and video platforms in China. International artists and companies work with Leyi Culture to produce and localize original digital content without restrictions.

Marketing and Sales Strategy

Although consumers in China expect digital content to be free, they are willing to pay for mobile apps and live streaming that enhance their ability to express their individuality and communicate with their friends. All Leyi Culture’s mobile apps include multimedia editing tool components, as well as a mechanism to share user-generated content across all social media networks.

These tools provide users with features that help them share with friends in their social network. Consumers who use Leyi Culture’s toolset can input their creative work into its e-business platform to share with friends or sell online. Consumers participate in the revenue sharing model, thus motivating long-term subscriptions and consumer lock-in. User generated content sales allows Leyi Culture to quickly identify emerging new talent and develop new artists for future streaming events and digital content sales.

Live Concert Streaming e-Ticket Sales

Leyi Culture also produces and manages live concerts that are streamed over the Internet and mobile networks in China and internationally. Online users will have to register and pay to view concerts in real-time. Paid users get Leyi Culture’s Media Player mobile app to access live interactive features, including interacting with artists during and after the performances.

Market and Sales Growth

Music and video streaming drives e-commerce in China’s mobile social media networks, which are growing rapidly. Chinese consumers streamed 30 percent more music and video on their mobile devices than their U.S. counterparts. Mobile digital music sales reached over RMB¥40 Billion (US$6.4 Billion) and the online video market achieved RMB¥12.81 Billion (US$2.08 Billion), with a 41.9% YoY growth rate. The video streaming market is expected to reach RMB¥36.6 Billion (US$5.97 Billion) in 2017. The advertising revenue accounted for 75% of total revenue.

  • Seventy-two percent of the general population of China listens to music – for an average of 16 hours a week. This rises to 82% for the most affluent tier of Chinese consumers.
  • Music is largely consumed online, particularly for the most affluent tier of consumers; 66% of music listeners use a streaming service in a typical week, rising to 71% for the most affluent tier of consumers.
  • For the most affluent music listeners in China, live events are even more popular than they are in the U.S. 57% attend live music events compared to 51% of the U.S general population.

Chinese Consumer Willingness to Pay is Increasing

The streaming events in China during 2014 and 2015 has shown Chinese consumers are willing to pay to view high quality streams featuring live artist performances and unique content.

  • 38% of all mobile users in 2016 indicated they would pay to watch live online concerts, up from 19% in 2014.
  • Prices Chinese consumers are now paying:
    • Onsite ticket: RMB¥100 to RMB¥1,000 (US$16 to US$160).
    • Online e-tickets: RMB¥20 to RMB¥30 (US$3 to US$5).
    • Online e-tickets outsell onsite tickets by 100+ to 1.
    • MangoTV example of online viewing/e-ticket prices, RMB¥20 preregister, RMB¥30 at concert time.
  • Chinese companies experimenting with revenue models:
    • Free viewing sponsored by business (ads to large audiences).
    • Pre- and post-concert promotions and sales.
    • Reverse O2O sales means onsite events drive online sales.
    • Value-added mobile apps to interact and share with friends while viewing online concerts, including consumer affiliate incentives.