Founder & former CEO of Ocean Butterflies Billy Koh sets up “rights management” company.

A Singapore songwriter, composer and music producer, Billy Koh is one of the most instrumental and influential figures in the Asian Chinese-Pop (C-pop) music industry. Founder & former CEO of Ocean Butterflies, Billy transformed Ocean Butterflies Music into one of the leading independent music powerhouses in Asia for the last 20 over years.

In his 30-year long music career, Billy has produced more than 200 albums for singers from Singapore, Malaysia, Thailand, Hong Kong, Taiwan, Mainland China & the US. He is best known for discovering & producing many successful Asian acts including Kit Chan in 1994, A-Do in 2002, JJ Lin in 2003 and BY2 in 2008.

In 2014, he quit as CEO of Ocean Butterflies to pursue his new business, Amusic Rights Management, a rights management business that exploits the “publishing rights of a musical work and all other rights resulting from the reproduction of it”. In particular, Amusic focuses on digital marketing of music, using an investment/ revenue sharing model with artistes that it works with.

We reached him to find out what exactly Amusic Rights Management is and how it works differently from a traditional music publisher and record label.

Amusic Rights Management business model.
Source: http://amusicrights.com/about/company  

What have music publishers and record labels failed to do in the current state of the music industry and how does Amusic seek to improve or work differently?

In digital platforms, music is uploaded sometimes not by creators but users. Large flows of content are mostly "self-driven" instead of pre-selected by editors in the old days. It'll be much more effective to administer copyrights of songs and sound recordings together via metadata encoded as a thumbprint of the digital tracks. Amusic does exactly that, and this is what I mean by a "rights management" company, where it invests and markets music as one.

The artists and producers are free to decide who they want to work with and they are pretty much their own boss. They don't need to be tied up with the majors, whose once powerful and exclusive physical distribution networks have now become obsolete. Heavyweight artistes like Michael Jackson, Madonna, Linkin Park all have their own music companies. The major labels would only sign distribution deals with them. These majors have hardly created any music content themselves any more for the last five decades.

As digital platforms matured, especially in the last five years, music companies who really create, produce and own music can now go to digital platforms themselves, bypassing the majors. Moreover, the majors do not own any digital platforms, especially not in China.

Amusic’s core business is in the digital realm but certainly not the only business. We are also involved in offline activities, such as helping clients pitch their songs for ads or placements in TV or film too.

Amusic doesn’t sign any artistes. It only works with the artistes. The artistes will employ or own his/her management company which decides what he wants for his/her career. The management company will then work with Amusic Creative Team, an A&R expert arm of Amusic Rights, to develop the repertoire of the artists. Amusic Rights is responsible for the quality of the products & taking care of the investment of the products including marketing it digitally.

The internet has levelled the playing field for all big and small companies to be able to gain a foothold in the fragmented music market, because even with smaller investment budgets, a substantiated level of awareness and interactive personalization can still be achieved between artistes and fans. So from an artiste's perspective, instead of working with a major label using cookie cutter "template strategies", they have the freedom to work with different partners via a modular business model to customize a plan according to their needs.

What does it take for an album to be successful, other than making sure that the product is of high quality?

High quality can only guarantee a long-lasting listening pleasure if the song even has a chance to be a hit in the first place. But how can a song be a hit? Well, that's what A&R for. It's a matter of harnessing and capturing the best of the humanities, fashion, social, aesthetic, emotion, culture, life-style etc. 

How are listeners consuming music now, particularly in China? In such a big but fragmented market, how do you ensure that your songs and artistes are heard?

Listeners in China consume music mostly through the internet, be it on PC or mobile. Marketing is about capturing focus within a specific time frame among all the rest of the competition. Using creative ways to capture attention can be the first step. However, once the crowd is pulled in, the interest level in the content will decide if the mass would want to re-generate it and amplify its reach.

In another interview, you mentioned about how the future of the music industry would and should be looking at how to maximizing its long tail. How do you think a relatively smaller company like Amusic can achieve this? Also, what are the advantages of being small? 

In the older days, most people do not have access to the old hits that they wish to recall as most players for the yesteryear's carriers or physical formats are not available any more.

Now with random accessibility provided by the digital era, everything can be made easily available by uploads generated from the users, not creators. Good music which can withstand time is in the long tail now. It's always easier to make a one-time hit than a long lasting hit. 

Of course, there's no guaranteed continuous success, but a good music team that has proven its acts which can last at least a decade or more must certainly possess some kind of know-how within. It's a science, not a miracle. 

Being small allows us to be independent, integrated & interactive, especially in the internet age. This will make every elite work for himself. It's more incentive driven and it cuts down all the nonsense of unnecessary meetings and reporting of the majors.

In recent years, many music industry professionals in China have given up or left, due to paper thin margins and a lack of a strong and cohesive ecosystem amongst the major players in the industry, including telcos, internet operators, music labels and the government. How do you think this is changing or improving? What more can be done?

At the legislative level, for sure it needs to speed up, especially when China’s economy is reforming towards growing their own innovation driven industries rather than staying merely as the "world’s factory". Again, we must not take any present copyright practices for granted. Let's see it this way, what exactly are "copyrights"?

Copyrights do not exist by virtue of God. It's a result of negotiation between creators, co-workers, platforms, media, traders & end-users. There needs to be a fair deal so that the business model can be sustained. In the last 20 years, we witness how the internet has digitised all media industries. Music is no exception, like it or not. I'm open for new negotiation for a new music business model as long as creators receive enough to make music a good living. It need not be the same way as during the old school days but it definitely needs everyone to sit down in a round table to discuss. Everyone, not just the westerners.

What do you think would the future of the music industry in Asia be like, particularly in China?

The priority now is to build super strong content and make an influential impact first. We need to create a super strong demand then the money, format and business model will surface naturally. In China, a new format that you never could have imagined will emerge.

Stop predicting and start working, on-the-ground not under-ground.

The future is a land that we've never been.

This interview was conducted by Emily Haw. Reach out to her on Twitter @emilyhaw

Ex-NUS undergraduate receives $10,000 seed money in entrepreneurship grant scheme to set up local music discovery website.

It all started when Danny W., back then a National University of Singapore (NUS) undergraduate, saw an advertisement while waiting for a shuttle bus on campus and saw the poster ad of the NUS Innovation and Entrepreneurship Practicum Grant.

Back in college, Danny had several musician friends who aspired to become full time musicians, but they struggled and finally decided to follow the "normal" graduate path and find a stable job. Danny wanted to make a difference, and his vision was to create a digital music platform that focused on local musicians as a means for them to be more easily discovered. By coming in together as a grassroots movement and having a concentrated platform for local musicians, he hoped that aspiring musicians will then be able to reach out to a lot more people than just their friends-zone.

Danny W., creator of iamLOCALIZED.sg

However, putting ideas into action naturally required a financial investment and it had been a tough start for him.

“I was still a student in my final semester and without a penny in my pocket. How will I fund this social project?” Danny asked himself.

So when the opportunity came, he jumped on it and submitted his proposal to set up iamLOCALIZED.sg. After weeks of waiting, he was finally notified that his business plan was selected to receive the $10,000 worth of funding.

He immediately looked for reputable website developers to create a prototype, The Alpha version came out for test drive in January 2012, and then on April 2012, the Beta version finally went online.

Screen shot of the website www.iamLOCALIZED.sg

How did you think your proposal stood out?

I believe the reason for being selected for the Innovation and Entrepreneurship Practicum Grant was because iamLOCALIZED's main element is that I identified it as an online grassroots movement, where iamLOCALIZED will bring together local musicians and listeners to promote local music. Online grassroots movement is undoubtedly the most happening thing at the moment, and my idea consists of that element. The area I chose, local music, is probably also the reason why my proposal stood out. There have been so many efforts by the organizations and musicians themselves to promote local music. Every time when they are asked what is lacking in the local music scene, their answers have always been more-less the same: "there is no platform that brings local musicians and listeners together". Hence I came up with an idea of having an online music platform specifically just for the local musicians.

It seems that currently there are no revenue streams in your model. How do you plan to be sustainable?

We do know that we need to be able to sustain the website, and most importantly to keep on developing the website for better user experience. Thanks to the grant, the website will still run for the next 2 years and this gives us ample time to experiment a few business models, may it be something that already exists or a totally new innovation. As of now, we are trying out different revenue generation models that would fit well with Singapore market. Music is consumed differently in different countries, and hence we see the importance of not sticking with just one business model. We believe there must be few trials-and-errors, and analyze to figure out what fits well with Singapore market. One revenue stream is through our IALiveSHOW. We have tried it, and currently we are in talks with few prominent venues to hold future IALiveSHOWs.

How can artists be discovered on your website?

At the moment, it's actually just a normal simple search algorithm; no rocket science implemented. Users search band name that they already know. Type the band name or genre, and then it displays the results. 

Discovery can be done through the following features:
- Music Charts: Most Loved Chart, and Most Played Chart of the month
- New Releases: Recent uploaded songs on iamLOCALIZED

- Welcome Playlist: Mix of random playlist upon login
- Artists section: Manually look for artists from A-Z
- Search bar: Type in name of band or music genre 
- IALiveSHOW: Discovery through the live show, or via recorded video of the live show on iamLOCALIZED homepage, or YouTube
- Social Media posts: daily posts on Facebook and Twitter.


We found out from our survey that most of the local listeners have the tendency of not looking for new local acts themselves, but they tend to discover accidentally or they have seen the artists performed somewhere or through recommendation. Not only in Singapore, but this is also happening all over the world in these days. Through the discovery features that we have, especially with the Music Charts, New Releases, Welcome Playlist, and IALiveSHOW, we are actually recommending local music that our local listeners would like hear. We believe in equal promotion, so the amount of promotion each artist get on iamLOCALIZED is more or less equally the same.

Music charts: how does it work? One vote per person? Or multiple votes per person? Is it a weekly or monthly chart?

The music charts is a feature that we hope to bring the competitive spirit into the local music scene. Users can give one vote per song. It is a monthly chart where the Most Played Chart will reset at the end of the month. Most Loved Chart is where you give your votes (showing some loves as we call it) to the song that you like, and it will reset at the end of the year.

How are you working out the licensing issues?

We are currently in touch with COMPASS in how do we stand and go about in terms of music licensing matter. Copyright is a big issue for us because after all, we are promoting original local music. We are also helping aspiring musicians to know about the importance of copyright and protecting their original music, because it is part of the music business element that the aspiring musicians themselves need to know about.

As a new platform, how do you intend to get artists and publishers to join your website?

The main challenge is to convince the musicians that putting their music on iamLOCALIZED is safe, and is beneficial for their exposure. We have realized that, and we are able to convince the musicians that the website is safe. As mentioned before also, we are currently in touch with COMPASS in protecting the musicians’ music.

As for their exposure, IALiveSHOW is definitely the main feature we have. Musicians are able to perform live in venues where people are watching them perform. It is good for the aspiring musicians to be exposed to such atmosphere, and for the existing musicians, it is always good for them to have the opportunity to perform live. From there onwards, it is the musicians’ duty to impress using their music talent.

How is the response so far? Any future targets?

The long term target for iamLOCALIZED is to become the one-stop-shop music channel for local Singapore music. Since the beta went online, we have 70 registered artists and 165 registered listeners. That sum up to a total of 235 registered users. Through those 70 registered artists, there are a total of 101 songs, made in Singapore. By the end of the year, we are targeting to round up the number to 300 registered users. Not so ambitious as one might see, but starting next year we will be going "full force" in promoting the artists and their music through innovative collaborations with various parties.



Music sales/distribution definitely plays a big role as an indicator for the musicians’ existence in the music industry. But for iamLOCALIZED, discovery is the most important factor at the moment. If we are able to engage high numbers of audience to play songs on iamLOCALIZED, we can promote the musicians further and enable them to generate income from music sales/distribution, playing live/tour, royalties, etc. This would empower the musicians to keep doing music, and aspiring musicians to follow the footstep of those successful ones. From here, we can eventually start to have a healthy music scene where you will be able to see local musicians can live from doing music. For iamLOCALIZED, this would be our tipping point where iamLOCALIZED will be able to generate income along with the musicians.

Since your site only focuses on local music, do you think the market supply and demand is big enough for your model to be sustainable?

I believe that the local market supply and demand is not enough for iamLOCALIZED to be sustainable. Other than being able to sustain itself, iamLOCALIZED also needs to grow. Hence we believe there is a need to venture out of Singapore as well. What we are trying to do is to grow along with the musicians. We are also working toward getting collaboration and partnership outside of Singapore. This would open the door for the musicians to showcase themselves outside of Singapore and empower them in bringing good music representing Singapore.

To sustain the interests of listeners, the golden rule for all musicians is to keep challenging themselves to create new music. The same goes to our local musicians. It is not about quantity, but quality, and as a matter of fact considering the population we have, we actually do have quality materials to sustain the interest of users. For musicians, it is a matter of keeping the standard high and create even more quality material.

What is your view on shifting the role of taste making from mainstream media to the average listener?



With the power of social media, the opinion leaders are none other than ourselves. All of us now are giving comments or opinions to almost everything that we're being exposed to on social media platforms.

From what I discovered through research is that what shifted the decision-making in this case is the medium that the consumers use. Consumers have moved from listening to radios, to watching music videos on TV, and they now are able to consume both via the Internet, and more specifically via social media platforms. Consumers are however mostly still influenced by what others recommend. If they used to get recommendations from the DJs on the radio, or the music channels on TV, now most music consumers get recommendations from their Facebook newsfeed, or Tweets, or YouTube recommendation list. Your friends on Facebook are mostly friends you have similar interests. The same goes for the Twitter accounts that you follow. Hence you would likely to get hooked with what your peers are listening/watching. To figure out whether you would like it or now, it is now just a click away.

IALiveShow: how do you intend to bring audiences to the shows? Any plans to monetize this area?

We started IALiveSHOW as part of the discovery feature, and as mentioned before, we are currently in talks with few prominent venues to collaborate with us. We definitely have plans to monetize in this area that would benefit the musicians, venue, and iamLOCALIZED. As this is a grassroots movement, one strategy is revenue sharing with the venue, depending on how many people actually come to the venue to attend IALiveSHOW and watch the artist perform. We have seen this done before in Singapore, and we are definitely going into this direction for IALiveSHOW.

COMPASS CEO says, "It's almost impossible to monetize music from new media."

During the 90-minute interview with Dr Edmund Lam, CEO of The Composers and Authors Society of Singapore (COMPASS), he was candid and forthcoming. As much as one hopes that a successful and more equitable business model will eventually emerge to monetize music in the new media age, he has seen a fair share of hopefuls that came and left the market, and what remains now are existing models that are still require improvement in many areas.

"It's almost impossible to monetize music from new media," he says. "But what new media has done is to provide more access for consumers to discover different types of music, which will encourage more artists to come to Singapore for live performances. New media has also helped artists save on marketing costs.”

                                         Dr Edmund Lam, CEO of COMPASS

Indeed, how artists and publishers earn their keep has continuously been a challenge, and Dr Lam shares how COMPASS, playing the role of Singapore’s sole copyright administrator, has evolved over time. He also talks about what he thinks will be the future of the music industry in Singapore.

Q: Based on COMPASS’s experience, what have been the best sources of royalties and other revenue in the 1980s, 1990s, 2000s? Has this changed over the years?

The bulk of the current copyright law is based on the 1989 Copyright Act and prior to (that) was the Imperial Copyright Act dated back in 1911. When the Copyright Act in 1989 was passed, COMPASS started around the same period, although we had not started administration then. Prior to that there was the Performing Rights Society, a subsidiary of the Performing Rights Society in UK has been operating here for a number of years based on the Imperial Copyright Act, but that Act granted limited rights to music writers. It was only applicable to situations where live music was performed; so the British Agency only licensed pubs, nightclubs and the like. But the new Copyright Act was a fundamental change, because overnight, it granted a number rights to creators and our composers, and that gave us a room to start our business and COMPASS commenced operations in 1991.

One of the most important rights then was the Broadcast right, which upset the radio and TV stations because they had to pay royalties to COMPASS, so there was a Copyright Tribunal. Under the Copyright law, there is a provisional section that allows a dispute between a collective management organization like COMPASS and the user to have the tariff arbitrated. And that was the first Copyright Tribunal hearing. Unfortunately, the decision from the Copyright Tribunal hearing in 1991 did not grant us attractive rates for traditional broadcast, but that was how we started our operations, and the revenue comes from TV and radio stations, which provided an unprecedented source of revenue. Back then, the users were upset, but over the years, we built up a very good relationship with the radio and TV stations and they do play a part: we sponsor programs and we jointly organize programs to promote the music industry. So the relationship has changed quite dramatically over the years. Now, traditional media understand and appreciate the need to compensate music writers for using the intellectual property of the songs, because without those songs, they wouldn’t have existed.

Resolving with the major broadcast stations was a major establishment in the 1990s; and the other was the licensing of live concerts, and the breakthrough came only in 1993 when Michael Jackson had a big concert for 3 nights at the National Stadium. Tickets were priced at over a hundred dollars each. The organizers of the concert refused to pay because he claimed that Michael Jackson had granted him all (musical) rights, and because of that dispute we had another major case heard at the Tribunal, which was covered by the media daily. It was a tough fight, but COMPASS won at the end of the day. The Tribunal agreed to the rate we have established at 2.5% of gross ticket sales, which translated to quite a sum for the Michael Jackson concert, estimating to be about over a million dollars. After this case, revenue flows included those from live concerts. After Michael Jackson’s concert, there was also a booming trend in live concerts, and even today, live concerts by major artists are on the rise, and this source of revenue has not diminished over the years. (Revenue from) broadcasting has also not declined over the years, but they faced competition from cable TV, which has also become our major source of income since 1995-6.

Traditional broadcast (radio and TV), live concerts and cable TV have become major revenues of COMPASS until today. In addition, the other major revenue source is from the entertainment industry – we managed to penetrate nightclubs, karaoke operators (karaoke is something probably only common in Asia), and so composers who compose songs that people like to sing in karaoke will earn more royalties.

In the late 1990s-2000s, there was a rise of the popularity of ringtones. COMPASS does not normally administer mechanical rights (reproduction rights) of a musical work. COMPASS started off with performing rights (i.e. broadcast rights/ live performance rights), and in the olden days of CD printing, COMPASS has historically not been involved in that line of business. The publishers themselves administer that particular right. So a composer will assign the musical rights to the Society but he will negotiate with the publishers to have his or her work to be recorded in a CD (sound recording) and this mechanical right is being administered by the publisher themselves, which was then licensed to the music labels for retail sales. But as we grow more established, we started to represent more independent writers who assigned those rights to us to administer. There was a short boom in ringtone, however the collections were not that attractive, because a ringtone supplier needed two licenses: one from COMPASS, which is a Communication right that we grant to them (when a ringtone supplier communicates to a handphone user, he requires this license from COMPASS). On the other hand, after the phone user receives the signal and makes a copy of it, that copy requires a reproduction right and requires a license from the publishers, and COMPASS does not have all the rights in this area. Some service providers took advantage of the confusion and did not pay the royalties. So although the ringtone business was doing very well (selling $1 each at its peak), we could only charge about 6-7 cents against a dollar, which translated into about $1-2 million of royalties out of a $20-30 million dollar ringtone business in Singapore. We didn’t manage to get much out of it because of the confusion, but in the end we all came together, because the publishers realized that it would be better to do it collectively, for the convenience of users. But by the time we got our act together, the ringtone business already went down. So the music industry was a little slow, and we couldn’t see the opportunity in time and was unable to catch up with trends quickly.

Q: What were some of the business models that worked or did not work for the music industry and why?

Similarly, for new upcoming business models, there’s some disunity amongst the different stakeholders in the industry, but hopefully we can get our act together to license the music to service providers. However, we realize it’s quite a challenging business because the Singaporean consumer does not purchase on a song-by-song basis. Consumers do not bite when you offer them $1 or $0.80 per song, as compared with markets in US, Japan and Australia.

One of them that failed was Soundbuzz, as the per-download model did not take off in Singapore. The telcos had the upperhand because they owned the platforms.  So some of them wanted a 50% margin if music was to be retailed through their platforms. Later, when the buffet-styled eat-all-you-can models was launched, it took off but in the process, music has become worthless. Nokia’s Comes With Music (product bundling model) also pulled out, because music has become too cheap and in the end we all don’t make any money.

The iTunes music service is not available in Singapore yet, but even if they launched it here, it will be very challenging for it to sustain because from the experience of the Nokia’s Come with Music business model, they used music not to make money but to use music to sell the phones. After they launched the service, Singaporeans downloaded several millions of songs but only for that small amount of money.

I think it is almost impossible to monetize music from new media. But what new media has done is to provide more access for consumers to discover different types of music, which will encourage more artists to come to Singapore for live performances. New media has also helped artists save on marketing costs. If you look at it broadly, artists can now promote their works more easily through YouTube and digital media. I observe that the cost of marketing Lady Gaga would be lower than marketing the Beatles, because with digital media, overnight, everyone will know about Lady Gaga, say in South Korea whereas in the past it would have taken months. Everything that happens now is instant and news spreads instantly. Marketing through new media is very massive and cheap. The labels and recording industry don’t benefit from all this, it’s more of the concert promoters and artistes themselves who are actually making the money now.

People are spending on music in a different way. People are willing to spend money on concerts to have a live experience and you’ll see the same artists coming back. One concert ticket is over a hundred dollars, and that, in the past, is worth 6-7 CD albums a years, so an average person is definitely spending more in music. Executives spend more time in bars, and more at karaoke sessions to have some kind of musical experience, as compared to previously.

Q: Could you elaborate more about COMPASS’s partnership with Youtube?

The license granted to YouTube is based on revenue collected from advertising. YouTube is also a place for our members to promote their works. More importantly, our license with Singapore YouTube allows the setting up of a Singapore domain. That’s the main motivation. We want YouTube to have a Singapore domain so we can track what kind of music and videos that Singaporeans or people in Singapore are viewing.

Q: What do you think would be the future of the music industry be like in Singapore?

In recent years, Opennet, the new generation of broadband, has started to roll out. It allows high quality streaming, which will connect our TV to all other devices in our homes. Once this is established, there are many services that can be provided to consumers. With Opennet, I could see changes in entertainment such as Xbox. Currently there are still limitations to Xbox with regards to the number of simultaneous multi-players because of limitations of bandwidth, but with Opennet, it will change the whole entertainment business. When you watch a football match, the resolution will be extremely clear. That will transform Singapore. Not many countries will have this – optical fibre. So I would see that the next kind of devices, such as the mobile phone, will be used as the interface to Internet TVs. Internet TV has not really picked up yet, but I think it will pick up after everyone has access to optical fibre broadband, and with that you can place your phone as a remote control to view YouTube on TV. That is already possible now, but currently it is still quite a cumbersome process to set up. In future, consumers will access their music through this platform, and probably people will watch programs and music using Opennet. It will be a revolution and change everything. Traditional broadcast media will be under threat, and so will cable TV. I believe that is the future.

Q: Geographically, which markets have the most potential?

Mainland China. It is a challenging market, but they would have to use a different model. They no longer make money through selling music, but once you establish a name in China, you can find other ways to milk the market. You can probably have many live performances. Just recently, I read that Eric Moo is making a lot of money, as every day he is performing at different places for those in their 40s and grew up with his music and can afford ticket prices. So he’s not doing new music but making money from all his old music. Artists can make money through touring and advertising. China has a population of 1.3billion people, and once you get an advertising right of a product, that would be more than enough for one album.

As for touring, I was told one cycle could last 4-5 years, given the number of cities and provinces that they could cover. Market size is still very important. Despite weak IP enforcement, there is still money to be made, albeit in other ways (e.g appearance fees). And so if CCTV invites you to be on their Chinese New Year show, you’d better not ask for money, because everyone will be fighting to get on it and the bargaining power will be different. Once you do an appearance like that, the chances of clinching a product endorsement deal are very high. And that’s how the industry will be involved, rather than through recorded music. Recording good music is still important, but the revenue cannot be from the sales of music.

About COMPASS

The Composers and Authors Society of Singapore (COMPASS) is an organisation created to protect and promote the copyright interests of composers, authors* (and their heir) and publishers of musical works and their related lyrics. COMPASS is a non-profit public company which administers the public performance, broadcast, diffusion and reproduction rights in music and musical associated literary works on behalf of its members. COMPASS deals specifically with music copyright and the usage of musical works.

For more information about COMPASS, visit www.compass.org.sg

17^th COMPASS Awards

The 17th COMPASS Awards Presentation will be held on 8 July 2012, 7pm at Marina Bay Sands, Sands Grand Ballroom. Event is exclusive to members.