Loud Records founder Steve Rifkind and Former LINE CEO Jeanie Han have started a new company called WAV. The curated app focuses specifically on hip-hop and dance music (for now) and soft launched earlier this year an interactive video platform for creative partnerships with artists, labels and press outlets. The app will help develop and produce exclusive video content and in these early stages has already collaborated with Skrillex's OWSLA label, The Fader, Hip-hop DX, Joey Bada$$, BIA, Krewella and more. While the company is focused on being a platform, Rifkind has even bigger plans in running a record label component with the intention of using the budding WAV ecosystem to lead its A&R and promotion efforts.
According to Rifkind, "I think the label business and the music business need to change...[It's still] the same thing I was doing 25 years ago... These record companies aren't developing artists anymore. They haven't developed artists in years and the first thing that they cut is video budgets".
Rifkind also went on to talk about the Asian marketplace, "...And then with our parent company, Naver that's the biggest tech company in Korea, we have this network of consumer-facing internet companies: From Naver, the search engine, to LINE. We have Snow, which is like the Snapchat of Asia, and we have the iTunes equivalent, we have Amazon equivalent, YouTube equivalent, all that in Asia and help them get introduced to the Asian market is a huge benefit that no one else can do. Literally, Facebook and Google can't even help you in Asia".
Let's focus on the Asian market a bit. Rifkind's partner, Jeanie Han, has assisted WAV with having some of these biggest tech companies not only in Korea but in Asia as a whole. China being the biggest country (in terms of population) in the entire world, that is one hell of a market to have access too. China currently has over 1.36 billion people but still never seems to in the top ten of music industry markets. In 2015, they ranked 14th and in 2016 they reached 12th. Recorded music revenue grew 20.3% and the country had a 30.6% rise in streaming services. Tencent Holdings, China's internet giant, owns QQ Music, Kugou, and Kuwo, all leading streaming services. Tencent Entertainment group has more than 15 million subscribers and has a market share of over 70%.
Tencent Music Entertainment Group Vice President, Andy NG, says, "We are all educating people to accept that content has a value and we are making progress. Young people in particular are more willing to pay for a music sercie, they are happy to spend a few dollars supporting artists they truly admire".
What does this mean for WAV? They hit the jackpot! Although China has never made the top 10, the potential is definitley there and the focus on the market is there. WAV has access to billions of Asia's people that the other industry giants do not have and with the way the market is rising they are definitely going in the right direction. Tencent will either be its competition or its partners. I would like to think having the streaming giant as a partner would be wise but they also have a whole lane to carve out for themselves. What do you think would be the best route? Let me know in the comments.
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