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Digital Music Industry in China Will Bloom

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.

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.

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