China’s media and entertainment sector will see a compound annual growth rate of 10% by 2018, according to PwC’s forecasts and the concert sector is not going to be left behind. Reyin, an A to Z service app for concert lovers in China, is a great example of a platform that is not only capitalizing on the growing interest in concerts but also effectively using (key opinion leaders) KOLs to monetize.
“China is starting to have a good mix of concerts. Big ones still have large audiences. But then the number of middle size and smaller scale concerts are growing,” Daniel Chang, CEO and founder of Reyin told TechNode. “Organizing and planning concerts is still less than those of Western countries. We want to see even more.”
Concerts are not only money making business for the entertainment companies and sponsors in China. Concert live streaming has taken off as well, and a flock of Chinese tech companies and music companies are offering affordable tickets for concert lovers to enjoy the concert at home. Daniel says these businesses do not compete with Reyin since Reyin provides unique on-site experience with concert KOLs.
The most basic functionality of the Reyin app helps users to find the concert they want and book concert tickets for them. But, they also have a premium membership model: users pay an annual subscription of RMB 3,999 (~US$ 581) for 3 concerts anywhere around the world and 9 held where they live. Daniel says the company has been cash positive since the beginning of 2017.
The real differentiator for Reyin, however, is their group of concert KOLs living overseas. They invite Reyin users to come to concerts in their country. For example, Lanty is a Chinese student living in Sheffield, UK. She writes about her experiences going to concerts in the UK and takes Reyin users to concerts and festivals.
More than 1,500 fans have attended concerts abroad led by a resident Reyin KOL.
According to Daniel, there are three groups of concertgoers in the China mainland market: heavy users who go to concerts whenever they can, especially to see famous bands or DJs; those who want to experience something different style of music and events; and those who usually only go when their friends invite them. Daniels says that a majority of their users are in the first two groups.
Founder and CEO of Reyin, Daniel Chang was born in Taiwan and lived in the U.S. for nine years, where he worked at e-commerce company NewEgg as a marketing director.
“I went to about 300 concerts in the U.S. When I came to Shanghai in 2012, I thought there are too few concerts in China. So I started the company to find all the concerts in China,” Daniel says. “I’m also a heavy user of my own service.”
Founded in 2014, Reyin received angel investment in 2015 from Peacock Capital, a Hong Kong-based venture capital, focusing on lifestyle and entertainment sector.
“We believe in the live music event industry that it connects people and provides them with an experience that cannot be replaced by recording or broadcast, and we believe Daniel and his team can make a difference in this industry,” John Au, director at Peacock Capital told TechNode.
Now the company is raising pre-A round for faster growth and overseas expansion. Reyin has overseas concert guide KOLs covering local concerts in 25 countries and 45 cities. The Shanghai-based company plans to expand its service to Shenzhen and Guangzhou and further its expansion to East Asia, adding more KOLs to its app.