Mobile Music in China: Making the Right Noises
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 Sectors Covered
- 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 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
- 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
- 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?
- What are the most important factors that will hinder or drive mobile music use in China between now and 2010?
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
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 (%)
Figure 18: Ringback tone subscribers, 2003-2010F (M)
Figure 19: Ringback tone revenue, 2003-2010F (RMB B) (inc. operator subscription fees)
Figure 20: Ringback tone revenue, 2003-2010F (RMB B) (exc. operator subscription fees)
Figure 21: Music IVR revenue share breakdown (%)
Figure 22: Major music IVR service providers
Figure 23: Music IVR market size, 2004-2010F (RMB M)
Figure 24: Full-track revenue share breakdown (%)
Figure 25: Full-track and truetone price comparison (RMB)
Figure 26: Streaming music revenue share breakdown (%)
Figure 27: WVAS providers revenue breakdown, 1H 2006 (RMB M)
Figure 28: Hurray! WVAS revenue breakdown by service, 1H 2006 (%)
Figure 29: Kongzhong WVAS revenue breakdown by service, 1H 2006 (%)
Figure 30: Linktone WVAS revenue breakdown by service, 1H 2006 (%)
Figure 31: Tom Online WVAS revenue breakdown by service, 1H 2006 (%)
Figure 32: NetEase revenue breakdown by service, 1H 2006 (%)
Figure 33: Sina revenue breakdown by service, 1H 2006 (%)
Figure 34: Sohu revenue breakdown by service, 1H 2006 (%)
Figure 35: Tencent revenue breakdown by service, 1H 2006 (%)
Figure 36: Mobile music market size by sector, 2004-2010F (RMB B)
Figure 37: The transition to an operator-centric mobile music value chain
Figure 38: Drivers and inhibitors to full-track download market growth
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 (%)
Figure 18: Ringback tone subscribers, 2003-2010F (M)
Figure 19: Ringback tone revenue, 2003-2010F (RMB B) (inc. operator subscription fees)
Figure 20: Ringback tone revenue, 2003-2010F (RMB B) (exc. operator subscription fees)
Figure 21: Music IVR revenue share breakdown (%)
Figure 22: Major music IVR service providers
Figure 23: Music IVR market size, 2004-2010F (RMB M)
Figure 24: Full-track revenue share breakdown (%)
Figure 25: Full-track and truetone price comparison (RMB)
Figure 26: Streaming music revenue share breakdown (%)
Figure 27: WVAS providers revenue breakdown, 1H 2006 (RMB M)
Figure 28: Hurray! WVAS revenue breakdown by service, 1H 2006 (%)
Figure 29: Kongzhong WVAS revenue breakdown by service, 1H 2006 (%)
Figure 30: Linktone WVAS revenue breakdown by service, 1H 2006 (%)
Figure 31: Tom Online WVAS revenue breakdown by service, 1H 2006 (%)
Figure 32: NetEase revenue breakdown by service, 1H 2006 (%)
Figure 33: Sina revenue breakdown by service, 1H 2006 (%)
Figure 34: Sohu revenue breakdown by service, 1H 2006 (%)
Figure 35: Tencent revenue breakdown by service, 1H 2006 (%)
Figure 36: Mobile music market size by sector, 2004-2010F (RMB B)
Figure 37: The transition to an operator-centric mobile music value chain
Figure 38: Drivers and inhibitors to full-track download market growth
