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With Piracy Crackdown, Legal Digital Music Industry in China Will Bloom


SCOTTSDALE, Ariz., January 17, 2006 - Although growth of the legal digital music market in China is now hampered by illegal music piracy, by 2008, China will be a major market for legal online music downloading with estimated annual revenue of US$222 million, reports In-Stat ( Promising signs in 2005 include the launch of several third-party online music stores, and some unauthorized services, or those working in a gray area, legitimizing their services, the high-tech market research firm says.

“The end of 2007 will be the turning point for China’s legitimate digital music market,” says Anty Zheng, In-Stat analyst. “By then, several mega online music stores will have opened; the user-base of portable music devices will have surpassed 100 million; a major crackdown on music piracy will have been in effect for several years; third-generation (3G) mobile communication system access will be rolled out; and consumers will be adequately educated about legitimate digital music.”

A recent report by In-Stat found the following:

Music labels, in association with the International Federation of Phonographic Industry (IFPI) are filing and winning copyright lawsuits in China.

An emerging individualism culture is creating a boom for network original-creation. Almost all digital music services are designed to adopt network original-creation, even to be original-creation oriented.

Although worldwide conglomerates can successfully place their selling and pricing structures in other countries, China’s extremely low ASPs and lack of royalties require a totally different business model.
The report, Digital Music in China (#IN0503208CCM), covers the legal online digital music market in China. It includes forecasts for portable audio players in service revenues and unit shipments, and projected unit average selling prices (ASPs) through 2008. It also provides market share data for services and portable players, and analysis of key trends.

To purchase this report, or for more information, please contact Erin McKeighan at 480-609-4551; The report price is $2,995 U.S. Dollars.


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