“Record labels develop in many diversified areas and it is time to establish a new organisation to coordinate this development,” Sony Music’s Ariel Feng told Music 2.0.
“This is a purely business decision.”
The four majors promised other labels will be allowed to join the group – but implied this would be by invitation only. Some reports claim the move was predicated by the appointment of Wu Yu as the president of IFPI Hong Kong, but disagreements over piracy and revenue also caused friction.
Presumably the majors were just annoyed that it’s pretty hard to sue customers in China, and wanted to take more of any money that’s actually made, in their classic pattern.
“It is likely that friction and power play between the majors and domestic labels’ influence within the IFPI could be the reason for this breakaway organization,” reports Music 2.0.