Mobile Music in China

Making the Right Noises

Publication Date	November 2006
Publisher	Maverick China Research
Product Type	Report
Pages	59
ISBN Number	not applicable
Product Code	MAV00003

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£1,175.00
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Summary

Mobile music is the driving force of China's wireless value-added services (WVAS) sector today. What started with a few simple beeped-out ringtones has now blossomed into a multifaceted group of music services. Mobile Music in China: Making the Right Noises offers the most comprehensive, up-to-date study on this fast-growing sector available anywhere. In this report, we analyze the key market forces at play today and forecast what the next five years will bring. Written for an international audience, this report is a valuable resource for mobile operators, music companies, and investors.

Mobile Music Sectors Covered

Mobile Music in China: Making the Right Noises covers all of the most popular mobile music services in China's WVAS market:

Ringtones: A unexpected new revenue stream for domestic musicians and record labels
Ringback Tones: Introduced just three years ago, over one third of China's mobile users already have one
Music IVR: An aging technology that has lasted longer than most predicted
Next-generation Services: Dim prospects for full-track downloads and streaming music

Industry-wide Coverage

China's mobile music value chain is currently undergoing a major transition, as operators assert their muscle and increasingly sophisticated users demand better quality content. This report examines the effects of this transition on all key players:

Mobile operators
Service providers: Chinese Internet portals, WVAS specialists, and music-focused SPs
Government regulators
Record labels and content providers
Content aggregators and industry watchdogs

In-depth Analysis of WVAS and Mobile Music Market Trends

Mobile Music in China: Making the Right Noises offers analysis of current and future market trends. Listed below are some of the key questions answered in this report:

Which mobile music services are driving growth in China?
How are mobile music revenues shared, and which companies are profiting from which services?
How much is music-related piracy being controlled in China, and to what extent do mobile music services suffer from piracy?
How does the continued wait for 3G licenses affect China's mobile music market?

Content

1 Executive Summary
2 Mobile Music: An Introduction
- 2.1 Global trends in digital and mobile music
- 2.2 Mobile music in China
- 2.3 Definitions and report scope
  - 2.3.1 WVAS classification in China
  - 2.3.2 Mobile music sectors in China
3 Key Mobile and WVAS Trends in China
- 3.1 400 million users and growing
- 3.2 Prepaid users increasing; ARPU decreasing
- 3.3 A new wave of rural, low-end users
- 3.4 WVAS most popular with young, urban users
- 3.5 Inadequate enforcement of anti-piracy laws
- 3.6 Few incentives not to use pirated goods
4 An Overview of China's Mobile Music Value Chain
- 4.1 Mobile operators
  - 4.1.1 China Mobile
  - 4.1.2 China Unicom
- 4.2 Service providers
  - 4.2.1 Chinese Internet portals
  - 4.2.2 WVAS specialists
  - 4.2.3 Music-focused service providers
- 4.3 Content providers
  - 4.3.1 Record labels
  - 4.3.2 R2G
- 4.4 Government regulators
  - 4.4.1 Ministry of Information Industry (MII)
  - 4.4.2 The Music Copyright Society of China (MCSC)
- 4.5 Revenue sharing models
5 Mobile Music Sectors in China
- 5.1 Overview
- 5.2 Ringtones
  - 5.2.1 Ringtone revenue sharing
  - 5.2.2 Ringtone market size
- 5.3 Ringback tones
  - 5.3.1 Ringback tone revenue sharing
  - 5.3.2 Ringback tone market size
- 5.4 Music IVR
  - 5.4.1 Music IVR revenue sharing
  - 5.4.2 Music IVR market size
- 5.5 Full-track downloads
  - 5.5.1 Full-track download revenue sharing
  - 5.5.2 Full-track download market size
- 5.6 Streaming music
  - 5.6.1 Streaming music revenue sharing
  - 5.6.2 Streaming music market size
6 Leading Mobile Music Service Providers
- 6.1 Music-focused service providers
  - 6.1.1 9Sky
  - 6.1.2 A8 Music Group
  - 6.1.3 Beijing Longtech
  - 6.1.4 Rock Mobile
- 6.2 WVAS specialists
  - 6.2.1 Hurray!
  - 6.2.2 Kongzhong
  - 6.2.3 Linktone
  - 6.2.4 Tom Online
- 6.3 Chinese Internet portals
  - 6.3.1 NetEase
  - 6.3.2 Sina
  - 6.3.3 Sohu
  - 6.3.4 Tencent
7 Conclusions
- 7.1 Mobile music market forecast, 2006-2010
- 7.2 Service providers squeezed by mobile operators and content providers
- 7.3 A transition to an operator-centric value chain
- 7.4 The impact of 3G on mobile music in China
- 7.5 Operator restructuring
- 7.6 The future of full-track downloads
List of Figures
- Figure 1: The evolution of mobile music services in China
- Figure 2: Mobile subscribers in China, 2001-2010F (M)
- Figure 3: China prepaid and postpaid mobile subscribers, 2001-2010F (M)
- Figure 4: China Mobile (CMCC) prepaid and postpaid ARPU, 2001-2005 (RMB)
- Figure 5: China's mobile music value chain
- Figure 6: Mobile operator WVAS revenues, 2003-2005 (RMB B)
- Figure 7: Service provider WVAS revenue, 1H 2006 (RMB M)
- Figure 8: Record label market share (%)
- Figure 9: Music Copyright Society of China content license fees
- Figure 10: WVAS revenue sharing plans
- Figure 11: Mobile music price comparison in China, 2006 (RMB)
- Figure 12: SP-CP-operator revenue share comparison (RMB per song)
- Figure 13: Ringtone feature comparison
- Figure 14: Ringtone revenue share breakdown (%)
- Figure 15: Ringtone market revenue, 2004-1010F (RMB B)
- Figure 16: Ringback tone user penetration, 2003-2010F (%)
- Figure 17: Ringback tone revenue share breakdown (%)