China's Wireless Music Market to Reach US$1.7 Billion by 2008

China's Analysys International says revenues from wireless music, including CRBT, IVR, stream media and music related WAP/MMS services, will reach US$1.7 billion in China by 2008. Wireless music subscribers will reach 114 million in 2008, accounting for 20% of total mobile phone subscribers in China by then.

According to Analysys International, China's wireless music market size reached US$22 million in 2003 and increased to US$900 million in 2005, with compound annual growth rate (CAGR) of 539%. Analysys International says, in the wireless music market in China, Color Ring Back Tone (CRBT) service grew the fastest from 2003 to 2005, reaching CAGR of 1421%; music related WAP/MMS market size grew at 347% CAGR; IVR music-on-demand service market grew by CAGR of 376%.

China Wireless Music Industry Development Trend 2005-2008
 

After rapid growth in the past three years, Ring tones, music downloading and CRBT services have entered a stable development stage. Although the IVR music-on-demand service is in a market adjustment stage due to operators' regulatory policies, the market is expecting to enter stable development in 2006. Stream media service is in a rapid market initiation stage.

''We forecast the wireless music industry in China will maintain stable growth in the following three years with CAGR of 27%'', said Edward Yu, CEO of Analysys International, ''Wireless music revenues will reach US$1.7 billion in China by 2008. Wireless music subscribers will reach 114 million in 2008, accounting for 20% of total mobile phone subscribers in China by then.''

Analysys International says high mobile terminal popularity rate, increasing user demands, industrial chain promotions, and technology and product mix improvement are the momentum driving wireless music market development in China."

Posted to the site on 11th April 2006