Final Hong Kong

Posted Fri Jun 20, 2008 4:00pm PDT by Bob Lefsetz in The Lefsetz Letter
1. The Electronic Arts guy said sales of video games in South Korea were tanking. They went from around eight million bucks a year to two... The bosses in the U.S. freaked out. They fired a ton of people. One of the newbies asked if he could experiment with a lame game, do something different... He decided to sell it online... In ONE YEAR that game did twelve million dollars. Packaged goods are not completely dead in South Korea, but almost... Sometimes it's not about the effort, the people, but the CONCEPT! Where you're going is more important than the tons of effort you're expending in getting there. Just like a great abstract painting is about the conception, not the amount of time it took to execute. Meanwhile, it takes 30 seconds to download a hi-def movie via the broadband in South Korea. Repeat after me, America is the greatest country in the world...we've been brainwashed!


2. A guy on the panel sold a dance mat game in India. He said he LOVED piracy. The more people who stole his game the better. Because, as he said so eloquently, "The clothes look like sh*t!" You see we live in a networked world... You don't want to go to the concert alone, you want to discuss music with your buddies. The key is to play with others online. And, you don't want to look like sh*t online... So, people are paying to rent clothes for their avatars from his online store. Some people only pay ten cents, for a month...others are spending FORTY FIVE DOLLARS A MONTH ON CLOTHES! Don't believe the major label hype, that we've got to get people to pay the equivalent of a buck a track, or more, for recorded music... There are other ways to skin a cat. Go with the flow a bit, there's money there... Meanwhile, he said he had a 45-year-old in his office, who sulked around. He encourages his workers to use his games. He came back to the office one night, after hours, and found this guy with his shoes off practicing... Now he's one of the best dancers in the office!


3. Rob McDermott won't let Linkin Park leave the country unless they're paid in full. But that doesn't mean he's afraid of China and its piracy. Sure, you can't sell a CD... But if you wrap that CD in a t-shirt, add a sticker, other items, people buy the product. He did this, he knows... You've got to try something new!


4. We went to Macau, to visit the Venetian, not only the world's largest casino, but the largest building in the world other than some hangar where Boeing builds jets. Had a private lunch with the GM, who used to be a dealer in Atlantic City. I asked him what happens on Sunday, when he wants to watch the game. He says he fires up his Slingbox, and watches on his computer via the TV in the home he still maintains in Linwood, New Jersey.

We saw the $150 million theatre they built for Cirque du Soleil. They're starting off with ten performances a week. We saw the 12,000-seat arena, Air Supply was playing that night. They already had the Police and Beyonce. Beyonce didn't sell out. They want American talent, but they don't want to overpay. That's a problem in this part of the world, someone with a deep pocket will pay an exorbitant fee and lose a ton of money, meanwhile the manager and agent believe this is the going rate and won't play for less...whereas to make it in this market, you've got to develop.

There's a shopping area equivalent to Caesar's Forum in Vegas, but MUCH larger. I didn't see all of it, I don't think anybody could...it's just that vast.

Meanwhile, the theatrical producer from London who brings all the plays to Southeast Asia wondered if they could fill all those Cirque seats... Legend has it that gambling is in the blood of the Chinese. But gambling is illegal in that country. They come to Macau to play games, but James said that he heard they don't shop, and don't eat in the expensive restaurants... Will they go to see Cirque du Soleil?


5. It was raining like hell on the way back and forth to Macau (you go in a ferry owned by the Venetian, it's a fifty minute ride). Turns out there was an Amber alert. No, no child was abducted, that's got to do with the weather... There are three colors. (http://www.hko.gov.hk/publica/gen_pub/rain_e.htm) Ultimately, the heavens exploded and that night we went black, both in terms of light and code, the equivalent of a typhoon... When it finally stopped the next day, we wanted to go to the History Museum, that's what you do on a rainy day. But the concierge called, and it wasn't open. That's what happens when it rains ad infinitum there, people don't go to work.


6. Every night at eight there's a light show... The buildings on both sides of the bay have lights embedded in them. They light up as the sun goes down, and then, at the appointed hour, they start blinking and moving in sequence. Hell, there are even lasers. Quite the effect. And it's free.

Saturday night we watched from the Kowloon side, from this restaurant on the 25th floor... Once again, if someone doesn't tell you where to go in Hong Kong, you have no idea a place exists.


7. On the endless ride home (well, only 12 hours instead of the 14-1/2 there), which is bizarre, because you start out in the daylight, go through nighttime, and emerge into daylight once again, I read this book Neill Dixon gave me, The Coming China Wars... It's got a right wing slant, but you can't argue with facts. China has all our money, it can bring us to our financial knees overnight. China needs natural resources. While you're getting high and partying, this quiet giant is remaking world economics. You've got to pay attention.

Meanwhile, the Canadian contingent went to Beijing and Shanghai before Hong Kong... They were overwhelmed by the pollution. You could see it just looking across the street. Not only are they shutting down factories for two weeks for the Olympics, you can only drive on alternate days.


8. Terry McBride's new thing is yoga salons. He plans to be almost completely out of the music business in five years.


9. There's a raft of ex-pats in Southeast Asia. This dude working for the Gap met a woman on the plane to Singapore who asked if he was a concert promoter, he lied and said yes. Now he lives with her in Kuala Lumpur and produces metal concerts. Meanwhile, it never cools off there, it's always hot and humid.


10. Got e-mail from Hong Kongers... They said shops are open until 10 because everybody's working 12 hours a day, trying to get ahead. They laugh at Americans. We're soft. They're going to overtake us. One visit will have you wondering whether they're right.

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