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Regulation Causes Slowdown of Mobile Music in China




Following three years of continuously strong growth, China's mobile music market slowed in 2006 as a result of Service Provider (SP) regulation initiated by China's Ministry of Information Industry (MII), reports In-Stat. A double-confirmation mechanism, which removed from SP subscriber lists the 20%?30% of consumers who were recruited involuntarily, led to sharp, short-term revenue declines, the high-tech market research firm says.

"In-Stat believes that the mobile music market will recover from SP regulation in 2007," says Raymond Yan, In-Stat analyst. "The outlook is positive for the continuous healthy development of the wireless value-added service market."

China's mobile music market revenue declined slightly to USD 703.2 million in 2006, an 8.1% decrease from 2005. - The penetration rate of music phones in total handsets will increase from 45% in 2006 to 85% in 2010. - Total shipments of music phones in China will reach 161.6 million by 2010.

The research, "Music Phone Wins But Mobile Music Loses in China", analyzes the development of the music phone market in China, provides music phone market size, major vendor market shares, and music phone shipment forecasts through 2010. Included is a forecast of the penetration rate of music phones among Chinese subscribers between 2005 and 2010. The report also analyses the various ways Chinese music phone users have access to MP3 files, and includes recent developments, market drivers, and constraints. It provides mobile music revenue figures for 2006, broken down by service provider and mobile operator.

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