World Online Music Market

World Online Music Market

This report analyzes the worldwide markets for Online Music in Millions of US$. The major product segments analyzed are Hard-Format ( Revenues derived from online sale of music CDs and cassettes), One-Off Downloads ( Revenues derived from one-time digital downloads), and Subscription Downloads (Revenues derived through music subscription services). The report provides separate comprehensive analytics for the US, Canada, Japan, Europe, Asia-Pacific, and Rest of World. Annual forecasts are provided for each region for the period of 2004 through 2015. The report profiles 96 companies including many key and niche players worldwide such as Buongiorno Vitaminic SpA., eMusic.com Inc., iTunes, RealNetworks, MusicNet, Inc., MTV Networks, OD2, Napster, Ecast, Inc., Wal-Mart, and Yahoo! Music Unlimited. Market data and analytics are derived from primary and secondary research. Company profiles are mostly extracted from URL research and reported select online sources.

I. INTRODUCTION, METHODOLOGY & PRODUCT DEFINITIONS

Study Reliability and Reporting Limitations I-1
Disclaimers I-2
Data Interpretation & Reporting Level I-2
Quantitative Techniques & Analytics I-3
Product Definitions and Scope of Study I-3

II. EXECUTIVE SUMMARY

1. Industry Overview II-1
Digital Music- Redefines Music Retailing II-1
Digital Music Market in 2005- Yardstick to Measure Market Potency II-1
Legitimate Channels of Digital Music Drive Online Music Market II-2
Current and Future Analysis II-2
Industry Dynamics Take Shape II-2
The Dawn of Legitimate Online Music II-3
Market Forecast by Distribution Method II-4
Hard-Format II-4
Soft Format II-4

2. Music Industry - What is in Store? II-5
Online Music - Music Industry’s Knight in Shining Armor II-5
Table 1: Comparative Analysis of Worldwide Music and Online
Music Revenues: 2001-2010 (includes corresponding
Graph/Chart) II-5
Recording Industry is Unique II-5
Table 2: Leading Companies in the Worldwide Music
Distribution Market (2003 & 2004E) - Percentage Breakdown by
Value Sales for Universal, Sony, Warner, EMI, BMG, and Others
(includes corresponding Graph/Chart) II-6
Internet Retailing in the Limelight II-6
Record Industry Moves Rapidly Towards the Internet II-6
Major Labels Finally Decide to Take the Plunge II-7
Broadband-Enabled Households to Transform Online Music
Distribution II-7

3. Impact of Internet on the Music Industry II-8
Internet to Dominate Music Considerations II-8
Table 3: World Market for Online Purchases (2007 E):
Percentage Share Breakdown by Popular Categories- Ok, Music,
PC Software, Apparel, Food and Others (includes corresponding
Graph/Chart). II-8
Internet - An Exciting Platform for Music Delivery II-8
How Internet Transformed the Music Industry II-8
Traditional Players Lose Grip on the Market II-9
Online Music - Is it Supplementary or Cannibalistic? II-9
Bottlenecks in the Growth Process II-9

4. Market Dynamics II-10
Market Highlights II-10
Market Drivers II-10
New Technologies, Accessibility and Affordability II-10
Broadband Aids in Enhancing Market Reach II-10
Table 4: Worldwide Internet Penetration Rate (2007): By
Region-Iceland, USA, Japan, Korea, Europe, Russia, China,
and India (includes corresponding Graph/Chart) II-11

Table 5: World Broadband Penetration (2005-2009E) by Number
of Households in North America, Western Europe, Europe,
EMEA, Asia-Pacific and Latin America (includes corresponding
Graph/Chart) II-11
Growth in Internet Users II-11
Availability of High Storage Capacity Portable Players II-11
Market Inhibitors II-12
Market Trends II-12
Legal Music Downloading - Taking Off, Finally II-12
Record Companies Maintain Dominance II-12
Music Service Providers - A New Breed of Middlemen II-13
Table 6: World Market for Legal Music Downloads (2004 &
2005): Percentage Share Breakdown of Value Sales by Major
Service Providers - Apple (i-tunes), Roxio (Napster),
Yahoo, (MusicMatch), RealNetwork (Rhapsody), Wal-mart and
Others (includes corresponding Graph/Chart) II-13
A Peek into Select Digital Music Service Providers Operating
in Online Music Industry in the Year 2005 II-13
Shift Toward À-La-Carte Model II-14
Music on Mobile Phone Networks Poised for Growth II-14
Table 7: Worldwide Digital Music Market (2005): Percentage
Breakdown of Music Downloads to Mobile and PC in North
America, Europe and Asia (Including Japan) (In Value Terms)
(includes corresponding Graph/Chart) II-15
Download Initiatives by Major Record Labels Find Success II-15
Consumer Behavior Trends II-15
Digital Lockers - Major Labels to Benefit in the Long Run II-15
Online Music to Blaze a Track which Online Video Follows II-16
Key Issues II-16
Online Music Sites: Subscriptions or One-off Downloads? II-16
Rights Clearance and a Host of Other Issues Choke ital Music
Market II-16
Cross Licensing and Product Support - Hot Issues the Marketplace II-17
Portability -An Issue to be Resolved II-17
Copyright and Other Issues II-17
Copy Protection Schemes Still Not Used Widely II-17
Personalization of Music Might Hinder Commercialization II-18
Competitive Landscape II-18
Consolidation Trend Grips the Industry II-18
Price Trends II-18
Table 8: MP3 Download Price Comparison by Region/Country (2004) II-18
Table 9: An Insight into Consumers Readiness to Pay for
Online Music Downloads (includes corresponding Graph/Chart) II-19
Strategies and Services of Select Players - A Brief Sketch II-19
Selling Music to Feed Other Business Interests II-19
Microsoft and Others to Eat into Apple’s Market Share II-20
Digital Download Services of Select Players II-20

5. Online Music Piracy II-21
Hampering Legitimate Online Music Services Growth II-21
Table 10: Worldwide Online Music Consumption (2005):
Breakdown of Age Bracket by Download Types - Legal on- Line,
Illegal on-Line and Physical CD II-21
Nature of Unauthorized Services II-21
Web, FTP and link sites II-21
Commercial Services II-21
Peer-to-Peer Networks II-21
Peer-to-Peer Network - How Does it Works? II-21
Table 11: World Market for Music Piracy (2003-2005) II-22

Table 12: World Online Music Piracy Market (2002- 2004):
Breakdown by Number of Infringing Files Taken Down from the
Internet II-22
Napster Storms Music Industry II-22
Napster Clones Hurting Interests of Recording Industry II-22
Major Labels Strengthen their Arsenal II-22
What can be Done? II-23
Compelling Alternative -Need of the Day II-23
Unlicensed File Sharing Services- Impact on Music Industry II-23

6. Insight into Select Online Music Services II-24
Digital Music Value Chain II-24
Categorization by Sales Model II-24
Subscription Services II-24
Table 13: World Online Music (2005): Important Parameters
Ranked by Consumers in Paid Subscriptions - Copy Songs
Portability to Device, Personal Radio,
Advertisement-free,Time Limit, Share Songs and Usage Limit
(includes corresponding Graph/Chart) II-24
Subscription Services in a Confused State II-25
Customercentric Focus to Promote Subscription Offerings II-25
À-la-carte Downloads II-25
Categorization by Download Type II-25
Tethered Download II-25
Album/Track Download II-25
Bundle Download II-26
Streaming II-26
Customized Streaming II-26
Internet Radio Service II-26

7. A Close Look at Enabling Products/Technologies II-27
Technological Developments II-27
Direct-To-Device Technology - Key to Legitimate Online Music
Services II-27
Sony's OpenMG Copy Protection Technology II-27
On-chip Security to Address Security Issues II-27
New "Interactive MP3" Technology II-27
‘Bridgeport’ from SuperTracks II-28
Superdistribution II-28
The Madison Project II-28
Copyright Protection Methods II-28
Encryption II-28
Digital Watermarking II-29
Audio Fingerprinting II-29
Digital Rights Management II-29
Digital Audio Formats II-29
Common Digital Audio Formats II-30
AAC II-30
WAV II-30
AIFF and AU II-30
PCM II-30
DPCM II-30
ADPCM II-31
m-Law Compression II-31
MPEG Audio II-31
MP3 Format II-31
MPEG-Based Proprietary Formats II-31
a2b II-31
Liquid Audio II-31
MP4 II-32
Apple QuickTime II-32
Non-MPEG Proprietary Formats II-32
Dolby Digital II-32
EPAC II-32
Windows Media Audio II-32
Real Audio II-32
TAC- II-32
Twin VQ (VQF) II-33
Streaming Audio Formats II-33
Streaming Audio Systems II-33
Portable Digital Music Devices II-33

8. Regulatory Trends and Legal Issues II-34
The Secure Digital Music Initiative (SDMI) II-34
Digital Millennium Copyright Act II-34
Canadian Music Industry Wins Landmark Case II-34
European Commission Approves Recording Industry’s Licensing
Program II-34
Joint Committee to Control Music Piracy in Universities II-35
Antitrust Lawsuit Accuses Apple for Dictating Online Music
Market II-35
RIIA Vs. Napster II-36
RIIA Vs. Madster II-36
RIIA Vs. Audiogalaxy II-36
JASRAC Vs. MMO Japan Ltd II-36

9. Product/Service Introductions II-37
RS Rolls Out Three New Websites II-37
UMG Partners with imeem II-37
China Telecom Unveils I Music II-37
MP3tunes Launches ‘TuneWatch’ II-37
ReelTime Launches Online Music Store II-38
Hutchison, ViDeOnline Announce Launch of hgc.o8media.com II-38
Microsoft Partners with Sanity Digital II-38
Apple® Unveils iTunes® Plus-DRM-Free Music Tracks II-38
Extraplay.Com Introduces New Service II-39
Napster to Deploy the First OTA Music Service in Japan II-39
RealNetworks/iriver Collaboration Launches Rhapsody® DNA-
Enhanced Portable Digital Music Devices II-39
Amazon.Com to Unveil New Stores that Offer Tracks in Mp3
Format Free From DRM II-39
Apple® Launches Pioneering iTunes Service - Complete My Album II-40
AOL Introduces AOL Music Now II-40
Napster Launches Napster 3.7 Featuring Powersync Technology II-40
Destiny Media, Promo Only Jointly Launch Online Music Service II-40
RealNetworks Launches RealMusic II-41
Cdigix Unveils Ctrax Media Player II-41
RealNetworks Introduces RealCommunity Service II-41
Charter Communications Introduces Charter Music To-Go II-41
Microsoft Launches Windows Media Player 11 for Windows XP II-42
MusicGremlin Unveils Wireless Music Player II-42
Apple® Introduces the Revolutionary iTunes® II-42
Apple® Introduces Four Latest iTunes® Music Stores II-42
MP3tunes Launches Oboe Syncsoftware II-43
eMusic Introduces ‘The eMusic Dozen’ Compilation II-43
Apple Launches iTunes 5 Online Digital Music Store II-43
RealNetwork Launches RealMusic Subscription Service II-43
Motorola and Apple Jointly Roll Out the First Mobile Phone
with iTunes in Hong Kong II-44
Nifty Corporation Launches Online Music Service in Japan II-44
PodShow Launches PodSafe Music Network II-44
Televisa Launches tarabu.com, a New Digital Store for the
Mexican Market II-44
Stelios Rolls Out EasyMusic II-44
Product Launches 2001-2004 II-45

10. Recent Industry Activity II-54
CHT Aims to Invest in Skysoft II-54
CHT Acquires 30% Stake in KKBOX II-54
EC Grants Clearance to Sony and BMG Collaboration II-54
Salem Publishing Acquires CMCentral.com II-54
RealNetworks and MTV Collaborate to Create Rhapsody America II-55
Orchard Acquires DMG II-55
KDDI and Sony Partner II-55
Universal Music Acquires BMG II-55
Napster Becomes AOL’s Exclusive Music Subscription Provider II-55
EMI Partners with Baidu for Internet Music Streaming Service II-56
Circuit City and Napster in Joint Venture II-56
Samsung to Unveil Internet Music Store II-56
Burned Media Completes Acquisition of Pretty Event Marketing II-56
Rogers Wireless Launches RogersMusic Store II-56
NT Media Opens Internet Music Store with a Points System II-57
IODA and Last.fm Unite to Form a Diverse Online Music Platform II-57
CBS Acquires Last.fm II-58
RealNetworks Pockets Sony NetServices II-58
WiderThan Partners with Helio II-58
EMI Music Enters into an Agreement with Amazon.com II-59
Vodafone Inks Pact with RealNetworks II-59
Napster and Ericsson Enter into Agreement with Swisscom Mobile II-59
Napster Enters into a Marketing Agreement with Motorola II-60
Oboe Technology of MP3tunes Enables Free Availability of
Online Music II-60
Ruckus Network Expands Services to All Colleges Nationwide II-60
Access to iTunes Japan from Yahoo Japan in a Click II-61
Sprint and Pandora Enters into an Agreement II-61
International Data Group to Acquire a Stake in Vietnam’s Yeu
Am Nhac II-61
Digital Music Group Takes Over Green Linnet Records II-61
Broadcast Music Enters into a Licensing Agreement with SpiralFrog II-61
Universal Music Group Acquires Vale Music II-62
MTV Launches Internet Venture with Baidu.com II-62
RealNetworks Enters into Distribution Agreement with Novell II-62
RealNetworks Enters into Agreement with Cox Communications II-62
Apple Introduces iTunes Store II-62
RealNetworks, SanDisk, Best Buy to Open Music Online Store II-63
Napster Japan Collaborates with Several Content Providers II-63
Coop Danmark and Danish TDC Open Online Music Store II-63
eMusic Forms an Alliance with SanDisk in Europe II-63
eMusic Partners with Cinema Screen, Hollywood Video and 20th
Century Fox II-64
Swish Acquires 51% Stake in Amphead Entertainment II-64
Destra Corporation Acquires Two Music Websites II-64
Buongiorno Opens Mobile Music Studio in the Netherlands II-64
Samsung Collaborates with MusicNet to Launch Portable Media
Players II-65
MusicNet Forms MediaNet Division for Licensing Digital Media
Content II-65
MusicNet Enters into Partnership with iMesh II-65
Nokia Acquires Loudeye II-66
Aeon Digital Collaborates with MusicNet to Offer Digital
Entertainment II-66
Muze Takes Over Loudeye’s Web and Mobile Digital Music Operations II-66
Mandriva Partners with Mindawn II-67
Live Nation Acquires Majority Stake in Musictoday II-67
Digital Music Group International to Distribute Tracks through
Three Record Labels II-67
Bigchampagne Incorporates Napster’s Data II-67
The Orchard Grants License to Yanga II-67
Napster Enters into a Partnership with Ericsson II-68
AOL Acquires MusicNow II-68
eMusic Partners with TVT Records II-68
Sonic Enters into a Strategic Agreement with MusicNet II-68
Baker Capital Takes Over MusicNet II-69
Musicnet Inks a Long-term Agreement with HMV II-69
RealNetworks® Enters into an Extended Online Music Agreement
with Comcast II-69
Destra Signs Pact with ABC II-70
MTV Networks and Microsoft Form Partnership II-70
Yedagng Acquires BugsMusic II-70
Napster to Sign a Joint Venture Deal with Tower Records Japan II-70
Lycos Europe Enters into an Agreement with Laut.de II-70
Yahoo Enters into Partnership Agreement with MusicNet II-71

11. Industry Activity in the Recent Past II-72

12. Focus on Select Global Players II-82
Buongiorno Vitaminic SpA (Italy) II-82
eMusic.com Inc. (US) II-82
iTunes (US) II-83
RealNetworks, Inc. (US) II-83
MusicNet, Inc. (US) II-83
MTV Networks (US) II-83
OD2 (UK) II-83
Napster (US) II-84
Ecast, Inc. (US) II-84
Wal-Mart (US) II-84
Yahoo! Music Unlimited (US) II-84

13. Global Market Perspective II-85
Table 14: World Recent Past, Current and Future Analysis for
Online Music by Geographic Region - US, Canada, Japan, Europe,
Asia-Pacific (excluding Japan) and Rest of World Markets
Independently Analyzed with Annual Sales Figures in US$
Million for Years 2004 through 2010 (includes corresponding
Graph/Chart) II-85

Table 15: World Long-term Projections for Online Music by
Geographic Region- US, Canada, Japan, Europe, Asia-Pacific
(excluding Japan), and Rest of World Markets Independently
Analyzed with Annual Sales Figures in US$ Million for Years
2011 through 2015 (includes corresponding Graph/Chart) II-86

Table 16: World 6-Year Perspective for Online Music by
Geographic Region - Percentage Breakdown of Dollar Sales for
US, Canada, Japan, Europe, Asia-Pacific (excluding Japan) and
Rest of World Markets for Years 2004, 2007 and 2010 (includes
corresponding Graph/Chart) II-87

Table 17: World Recent Past, Current and Future Analysis for
Hard Format Market (Online) by Geographic Region - US, Canada,
Japan, Europe, Asia-Pacific (excluding Japan) and Rest of
World Markets Independently Analyzed with Annual Sales Figures
in US$ Million for Years 2004 through 2010 (includes
corresponding Graph/Chart) II-88

Table 18: World Long-term Projections for Hard Format Market
(Online) by Geographic Region- US, Canada, Japan, Europe,
Asia-Pacific (excluding Japan), and Rest of World Markets
Independently Analyzed with Annual Sales Figures in US$
Million for Years 2011 through 2015 (includes corresponding
Graph/Chart) II-89

Table 19: World 6-Year Perspective for Hard Format Market
(Online) by Geographic Region - Percentage Breakdown of
Dollar Sales for US, Canada, Japan, Europe, Asia-Pacific
(excluding Japan) and Rest of World Markets for Years 2004,
2007 and 2010 (includes corresponding Graph/Chart) II-90

Table 20: World Recent Past, Current and Future Analysis for
One-off Downloads by Geographic Region - US, Canada, Japan,
Europe, Asia-Pacific (excluding Japan) and Rest of World
Markets Independently Analyzed with Annual Sales Figures in
US$ Million for Years 2004 through 2010 (includes
corresponding Graph/Chart) II-91

Table 21: World Long-term Projections for One-off Downloads by
Geographic Region- US, Canada, Japan, Europe, Asia-Pacific
(excluding Japan), and Rest of World Markets Independently
Analyzed with Annual Sales Figures in US$ Million for Years
2011 through 2015 (includes corresponding Graph/Chart) II-92

Table 22: World 6-Year Perspective for One-off Downloads by
Geographic Region - Percentage Breakdown of Dollar Sales for
US, Canada, Japan, Europe, Asia-Pacific (excluding Japan) and
Rest of World Markets Independently Markets for Years 2004,
2007 and 2010 (includes corresponding Graph/Chart) II-93

Table 23: World Recent Past, Current and Future Analysis for
Subscription Downloads by Geographic Region - US, Canada,
Japan, Europe, Asia-Pacific (excluding Japan), and Rest of
World Markets Independently Analyzed with Annual Sales
Figures in US$ Million for Years 2004 through 2010 (includes
corresponding Graph/Chart) II-94

Table 24: World Long-term Projections for Subscription
Downloads by Geographic Region- US, Canada, Japan, Europe,
Asia-Pacific (excluding Japan), and Rest of World Markets
Independently Analyzed with Annual Sales Figures in US$
Million for Years 2011 through 2015 (includes corresponding
Graph/Chart) II-95

Table 25: World 6-Year Perspective for Subscription Downloads
by Geographic Region - Percentage Breakdown of Dollar Sales
for US, Canada, Japan, Europe, Asia-Pacific (excluding Japan)
and Rest of World Markets for Years 2004, 2007 and 2010
(includes corresponding Graph/Chart) II-96

III. MARKET

1. The United States III-1
A.Market Analysis III-1
Outlook III-1
Overview III-1
Online Music to Account for Significant Share in the Music
Market III-2
Table 26: Comparative Analysis of US Music and Online
Music Revenues in US$ Million: 2004- 2010 (includes
corresponding Graph/Chart) III-2
What Does the Future Holds? III-2
Market Overview III-2
US Online Music Hits the Right Note III-2
Table 27: US Market for Online Music (2005): Percentage
Share Breakdown of US$0.99 Song Download by Revenue
Component -Marketing, Overhead, Corporate Profit, Digital
Service Provider, Retailer Margin, Publishing, Bandwidth
and Artist Royalty (includes corresponding Graph/Chart) III-3
Search Engines Fuelling Online Music III-3
Mobile Music- A Prime Distribution Format of Online Music III-3
Factors Influencing Growth III-4
Internet Penetration - Key To Rapid Proliferation of Online
Music III-4
Table 28: US Online Music Buyers in Millions (2000, 2004
and 2007) (includes corresponding Graph/Chart) III-4
Table 29: Percentage of US Net Population Buying Music
Online (2000, 2004 and 2007) (includes corresponding
Graph/Chart) III-4
Table 30: Percentage Share of Number of Hours Spent with
Various Media -in the US: (2006) (includes corresponding
Graph/Chart) III-5
Online Music Becomes A Mass-Market Phenomenon III-5
File Sharing Services Gain Rapid Popularity III-5
Legal Music Services and Campuses Join Hands to Reduce Piracy III-5
Record Labels to Benefit in the Long Run III-5
Online Music-A Threat to Radio III-6
Consumer Behavior Trends III-6
Buying Behavior of Online Music Customers III-6
Popularity of Music Sites Among Online Music Fans III-6
Table 31: Proportion of US Online Music Fans Visiting
Various Music Sites (2004) - Music Download Sites, Music
Retail Sites, Radio Station Sites, MTV.com, Artist Sites
and Broadcast Sites (includes corresponding Graph/Chart) III-7
Demographics and Downloading Behavior III-7
Age Group III-7
Table 32: Proportion of US Population Inclined to Music
Downloads by Age Group (2004)- Below 18, 18-29, 30-49, 50
andAbove (includescorresponding Graph/Chart) III-7
Gender III-7
Table 33: Proportion of US Adult Men and Women Inclined To
Music Downloads (2004& 2005) III-8
Income III-8
Table 34: Proportion of US Population Inclined to Music
Downloads by Annual Income (2004 and 2005) III-8

Table 35: Online Experience and Downloading Behavior in
the US (2004(includes corresponding Graph/Chart) III-8
Browsing Behavior of Netizens III-9
Table 36: Online Adult Population and Entertainment Site
Visitors in the US (2002-2004) (includes corresponding
Graph/Chart) III-9
Competitive Landscape III-9
Table 37: US Subscription Music Service Industry
(2005-2006): Number of Subscribers Used Music Services of
Major Websites- RealNetworks, Napster, Yahoo Unlimited,
eMusic and Music Now (In Thousands) (includes
corresponding Graph/Chart) III-10
Key Players III-10
Product/Service Introductions III-12
Strategic Corporate Developments III-19
B.Market Analytics III-41
Table 38: US Recent Past, Current and Future Analysis for
Online Music by Distribution Format - Hard Format, One-off
Downloads & Subscription Downloads Markets Independently
Analyzed with Annual Sales Figures in US$ Million for Years
2004 through 2010 (includes corresponding Graph/Chart) III-41

Table 39: US Long-term Projections for Online Music by
Distribution Format - Hard Format, One-off Downloads &
Subscription Downloads Markets Independently Analyzed with
Annual Sales Figures in US$ Million for Years 2011 through
2015 (includes corresponding Graph/Chart) III-42

Table 40: US 6-Year Perspective for Online Music by
Distribution Format - Percentage Breakdown of Dollar Sales
for Hard Format, One-off Downloads & Subscription Downloads
Markets for Years 2004, 2007 and 2010 (includes
corresponding Graph/Chart) III-42

2. Canada III-43
A.Market Analysis III-43
Outlook III-43
Canada Online Music Market-An Overview III-43
Table 41: Leading Companies in the Canadian Music
Distribution Market (2000)- Percentage Breakdown by Value
sales for Universal Music, Sony, Warner Music Canada, EMI
Music Canada,BMG Music Canada, and Others - Historic Data
(includes corresponding Graph/Chart) III-43
Product/Service Introductions III-43
Strategic Corporate Developments III-44
B.Market Analytics III-45
Table 42: Canadian Recent Past, Current and Future Analysis
for Online Music by Distribution Format - Hard Format,
One-off Downloads & Subscription Downloads Markets
Independently Analyzed with Annual Sales Figures in US$
Million for Years 2004 through 2010 (includes corresponding
Graph/Chart) III-45

Table 43: Canadian Long-term Projections for Online Music by
Distribution Format - Hard Format, One-off Downloads &
Subscription Downloads Markets Independently Analyzed with
Annual Sales Figures in US$ Million for Years 2011 through
2015 (includes corresponding Graph/Chart) III-46

Table 44: Canadian 6-Year Perspective for Online Music by
Distribution Format - Percentage Breakdown of Dollar Sales
for Hard Format, One-off Downloads & Subscription Downloads
Markets for Years 2004, 2007 and 2010 (includes
corresponding Graph/Chart) III-46

3. Japan III-47
A.Market Analysis III-47
Outlook III-47
Market Overview III-47
Table 45: Japanese Music Industry (2005-2006): Percentage
Breakdown of Value Sales by Recorded (Audio and Music
Video) and Digital Music (includes corresponding
Graph/Chart) III-47

Table 46: Japanese Online Music Industry (2005-2006):
Percentage Breakdown of Digital Music by Channels-Internet
Downloads (Single Track, Album and Others) and Mobile
Downloads (Mastertones, Ringback tones, Single Track, and
Other Contents) and Others (In Volume Terms) (includes
corresponding Graph/Chart) III-48
Downloading on Mobile More Popular III-48
Key Player III-48
Product/Service Introductions III-49
Strategic Corporate Developments III-50
B.Market Analytics III-51
Table 47: Japanese Recent Past, Current and Future Analysis
for Online Music by Distribution Format - Hard Format,
One-off Downloads & Subscription Downloads Markets
Independently Analyzed with Annual Sales Figures in US$
Million for Years 2004 through 2010 (includes
corresponding Graph/Chart) III-51

Table 48: Japanese Long-term Projections for Online Music by
Distribution Format - Hard Format, One-off Downloads &
Subscription Downloads Markets Independently Analyzed with
Annual Sales Figures in US$ Million for Years 2011 through
2015 (includes corresponding Graph/Chart) III-52

Table 49: Japanese 6-Year Perspective for Online Music by
Distribution Format - Percentage Breakdown of Dollar Sales
for Hard Format, One-off Downloads & Subscription Downloads
Markets for Years 2004, 2007 and 2010 (includes
corresponding Graph/Chart) III-52

4. Europe III-53
A.Market Analysis III-53
Market Outlook III-53
Analysis by Distribution Format III-53
Overview III-53
European Online Music Industry-In Recent Past III-53
Mobile Music-A Lucrative Segment III-54
Table 50: Percentage Breakdown of Digital Music Sales by
Channels in the Year 2005 (includes corresponding
Graph/Chart) III-54
New One-Stop Licensing Scheme to Bolster Online Music Industry III-54
Legitimate Music Download Services Gains Ground III-55
Table 51: European Online Music Market (2005 & 2011):
Percentage of Legal Online Music Downloads by Region-United
Kingdom, France, Germany and Others (In Value Terms)
(includes corresponding Graph/Chart) III-55
European Market Beset with Several Problems III-56
Collecting Societies - Hindering Online Music III-56
Technological Advancements to Boost Consumer Spending III-56
Challenges Ahead III-56
Key Players III-56
Product/Service Introductions III-57
Strategic Corporate Developments III-59
B.Market Analytics III-61
Table 52: European Recent Past, Current and Future Analysis
for Online Music by Geographic Region - France, Germany,
Italy, UK, Spain and Rest of Europe Markets Independently
Analyzed with Annual Sales Figures in US$ Million for Years
2004 through 2010 (includes corresponding Graph/Chart) III-61

Table 53: European Long-term Projections for Online Music by
Geographic Region - France, Germany, Italy, UK, Spain and
Rest of Europe Markets Independently Analyzed with Annual
Sales Figures in US$ Million for Years 2011 through 2015
(includes corresponding Graph/Chart) III-62

Table 54: European Recent Past, Current and Future Analysis
for Online Music by Distribution Format - Hard Format,
One-off Downloads & Subscription Downloads Markets
Independently Analyzed with Annual Sales Figures in US$
Million for Years 2004 through 2010 (includes
corresponding Graph/Chart) III-63

Table 55: European Long-term Projections for Online Music by
Distribution Format - Hard Format, One-off Downloads &
Subscription Downloads Markets Independently Analyzed with
Annual Sales Figures in US$ Million for Years 2011 through
2015 (includes corresponding Graph/Chart) III-63

Table 56: European 6-Year Perspective for Online Music by
Geographic Region - Percentage Breakdown of Dollar Sales
for France, Germany, Italy, UK, Spain and Rest of Europe
Markets for Years 2004, 2007 and 2010 (includes
corresponding Graph/Chart) III-64

Table 57: European 6-Year Perspective for Online Music by
Distribution Format - Percentage Breakdown of Dollar Sales
for Hard Format, One-off Downloads & Subscription Downloads
Markets for Years 2004, 2007 and 2010 (includes
corresponding Graph/Chart) III-64

4a. France III-65
A.Market Analysis III-65
Outlook III-65
Table 58: French Market for Online Purchases (2007 E):
Percentage Share Breakdown by Popular Items- Leisure
Travel, Music, Books, Stocks/Mutual Funds and Toys(includes
corresponding Graph/Chart) III-65
Strategic Corporate Developments III-65
B.Market Analytics III-66
Table 59: French Recent Past, Current and Future Analysis
for Online Music by Distribution Format - Hard Format
One-off Downloads & Subscription Downloads Markets
Independently Analyzed with Annual Sales Figures in US$
Million for Years 2004 through 2010 (includes
corresponding Graph/Chart) III-66

Table 60: French Long-term Projections for Online Music by
Distribution Format - Hard Format, One-off Downloads &
Subscription Downloads Markets Independently Analyzed with
Annual Sales Figures in US$ Million for Years 2011 through
2015 (includes corresponding Graph/Chart) III-67

Table 61: French 6-Year Perspective for Online Music by
Distribution Format - Percentage Breakdown of DollarSales
for Hard Format, One-off Downloads & Subscription Downloads
Markets for Years2004, 2007 and 2010 (includes
corresponding Graph/Chart) III-67

4b. Germany III-68
A.Market Analysis III-68
Outlook III-68
Product/Service Introductions III-68
Strategic Corporate Developments III-69
B.Market Analytics III-70
Table 62: German Recent Past, Current and Future Analysis
for Online Music by Distribution Format - Hard Format
One-off Downloads & Subscription Downloads Markets
Independently Analyzed with Annual Sales Figures in US$
Million for Years 2001 through 2010 (includes
corresponding Graph/Chart) III-70

Table 63: German Long-term Projections for Online Music by
Distribution Format - Hard Format, One-off Downloads &
Subscription Downloads Markets Independently Analyzed with
Annual Sales Figures in US$ Million for Years 2011 through
2015 (includes corresponding Graph/Chart) III-70

Table 64: German 6-Year Perspective for Online Music by
Distribution Format - Percentage Breakdown of DollarSales
for Hard Format, One-off Downloads & Subscription Downloads
Markets for Years 2004, 2007 and 2010 (includes
corresponding Graph/Chart) III-71

4c. Italy III-72
A.Market Analysis III-72
Outlook III-72
Product/Service Innovation/Introduction III-72
Strategic Corporate Developments in the Recent Past III-72
B.Market Analytics III-74
Table 65: Italian Recent Past, Current and Future Analysis
for Online Music by Distribution Format - Hard Format,
One-off Downloads & Subscription Downloads Markets
Independently Analyzed with Annual Sales Figures in US$
Million for Years 2004 through 2010(includes corresponding
Graph/Chart) III-74

Table 66: Italian Long-term Projections for Online Music by
Distribution Format - Hard Format, One-off Downloads &
Subscription Downloads Markets Independently Analyzed with
Annual Sales Figures in US$ Million for Years 2011 through
2015 (includes corresponding Graph/Chart) III-74

Table 67: Italian 6-Year Perspective for Online Music by
Distribution Format - Percentage Breakdown of Dollar Sales
for Hard Format, One-off Downloads & Subscription Downloads
Markets for Years 2004, 2007 and 2010 (includes
corresponding Graph/Chart) III-75

4d. The United Kingdom III-76
A.Market Analysis III-76
Outlook III-76
Music: A Leading and Lucrative Market in the UK III-76
Music Reaches Out with Innovations III-76
Digital Music: Spectacular Growth over the Years III-76
CDs Might Face the Music from Portable Digital Players and
Mobile Phones III-77
Illegal Music Downloads Pose Challenge III-77
Areas Where the US Companies Could Pitch In III-77
P2P Goes Legal and Commercial III-77
Consumer Trends in UK III-77
Table 68: Proportion of UK Population Visiting Music
Download Sites (2007 E) (includes corresponding
Graph/Chart) III-78

Table 69: Proportion of UK Population Using Peer- To-Peer
Service (2007 E) by Gender - Male and Female III-78
Select Product/Service Introductions III-78
Strategic Corporate Developments III-79
B.Market Analytics III-81
Table 70: UK Recent Past, Current and Future Analysis for
Online Music by Distribution Format - Hard Format, One-off
Downloads & Subscription Downloads Markets Independently
Analyzed with Annual Sales Figures in US$ Million for Years
2004 through 2010 (includes corresponding Graph/Chart) III-81

Table 71: UK Long-term Projections for Online Music by
Distribution Format - Hard Format, One-off Downloads &
Subscription Downloads Markets Independently Analyzed with
Annual Sales Figures in US$ Million for Years 2011 through
2015 (includes corresponding Graph/Chart) III-82

Table 72: UK 6-Year Perspective for Online Music by
Distribution Format - Percentage Breakdown of Dollar Sales
for Hard Format, One-off Downloads &Subscription Downloads
Markets for Years 2004, 2007 and 2010 (includes
corresponding/Chart) III-82

4e. Spain III-83
A.Market Analysis III-83
Outlook III-83
Strategic Corporate Developments III-83
B.Market Analytics III-84
Table 73: Spanish Recent Past, Current and Future Analysis
for Online Music by Distribution Format - Hard Format,
One-off Downloads & Subscription Downloads Markets
Independently Analyzed with Annual Sales Figures in US$
Million for Years 2004 through 2010 (includes corresponding
Graph/Chart) III-84

Table 74: Spanish Long-term Projections for Online Music by
Distribution Format - Hard Format, One-off Downloads &
Subscription Downloads Markets Independently Analyzed with
Annual Sales Figures in US$ Million for Years 2011 through
2015 (includes corresponding Graph/Chart) III-85

Table 75: Spanish 6-Year Perspective for Online Music by
Distribution Format - Percentage Breakdown of Dollar Sales
for Hard Format, One-off Downloads & Subscription Downloads
Markets for Years 2004, 2007 and 2010(includes corresponding
Graph/Chart) III-85

4f. Rest of Europe III-86
A.Market Analysis III-86
Outlook III-86
Table 76: Netherlands Market for Online Purchases (2007 E):
Percentage Share Breakdown by Popular Items- Music, Books,
Pc Software, Leisure Travel and Electronics(includes
corresponding Graph/Chart) III-86
Belgium III-86
Digital Music and E-Commerce Industry in Belgium III-86
Product/Service Innovation/Introduction III-87
Strategic Corporate Developments III-87
B.Market Analytics III-88
Table 77: Rest of Europe Recent Past, Current and Future
Analysis for Online Music by Distribution Format - Hard
Format, One-off Downloads & Subscription Downloads Markets
Independently Analyzed with Annual Sales Figures in US$
Million for Years 2004 through 2010 (includes corresponding
Graph/Chart) III-88

Table 78: Rest of Europe Long-term Projections for Online
Music by Distribution Format - Hard Format, One-off
Downloads & Subscription Downloads Markets Independently
Analyzed with Annual Sales Figures in US$ Million for Years
2011 through 2015 (includes corresponding Graph/Chart) III-89

Table 79: Rest of Europe 6-Year Perspective for Online
Music by Distribution Format - Percentage Breakdown of
Dollar Sales for Hard Format, One-off Downloads &
Subscription Downloads Markets for Years 2004, 2007 and
2010 (includes corresponding Graph/Chart) III-89

5. Asia-Pacific III-90
A.Market Analysis III-90
Outlook III-90
Overview III-90
Favorable Environment for Rapid Proliferation III-90
Table 80: Asia-Pacific Top 10 Music Sites (2004): Ranking
by Market Shares - BugsMusic, MaxMP3, Melon, Jukeon, Muz,
MusicOn, Funcake, I like Pop,Wabar.com and My
listen(includes corresponding Graph/Chart) III-90
Australia III-91
Table 81: Leading Online Purchases in Australia (2007E):
Percentage Share Breakdown by Items - Books, Groceries,
Music, PC Software, PC Hardware (includes corresponding
Graph/Chart) III-91
China III-91
Internet Market in China III-91
Table 82: Chinese Market for Online Purchases (2007 E):
Percetage Use of Internet by Application (includes
corresponding Graph/Chart) III-92
India III-92
Table 83: Indian Market for Online Purchases (2007 E):
Percentage Use of Internet by Application (includes
corresponding Graph/Chart) III-92

Table 84: Tracking the Demographic Purchase Pattern of
Online Music in India- By Age (includes corresponding
Graph/Chart) III-93
South Korea III-93
Table 85: South Korean Piracy Market (2004-2005):
Percentage Breakdown of Dollar Sales By Segment- Music,
Motion Pictures, and Games (includes corresponding
Graph/Chart) III-93
Online Music Benefited the Most from Stringent Online
Content Protection Law III-94
Key Players III-94
Product/Service Introductions III-94
Strategic Corporate Developments III-98
B.Market Analytics III-101
Table 86: Asia-Pacific Recent Past, Current and Future
Analysis for Online Music by Distribution Format - Hard
Format, One-off Downloads & Subscription Downloads Markets
Independently Analyzed with Annual Sales Figures in US$
Million for Years 2004 through 2010 (includes corresponding
Graph/Chart) III-101

Table 87: Asia-Pacific Long-term Projections for Online
Music by Distribution Format - Hard Format, One-off
Downloads & Subscription Downloads Markets Independently
Analyzed with Annual Sales Figures in US$ Million for Years
2011 through 2015 (includes corresponding Graph/Chart) III-101

Table 88: Asia-Pacific 6-Year Perspective for Online Music
by Distribution Format - Percentage Breakdown of Dollar
Sales for Hard Formatc, One-off Downloads & Subscription
Downloads Markets for Years 2004, 2007 and 2010 (includes
corresponding Graph/Chart) III-102

6. Rest of World III-103
A.Market Analysis III-103
Outlook III-103
Product/Service Introduction III-103
B.Market Analytics III-104
Table 89: Rest of World Recent Past, Current and Future
Analysis for Online Music by Distribution Format -Hard
Format, One-off Downloads & Subscription Downloads Markets
Independently Analyzed with Annual Sales Figures in US$
Million for Years 2004 through 2010 (includes corresponding
Graph/Chart) III-104

Table 90: Rest of World Long-term Projections for Online
Music by Distribution Format - Hard Format, One-off
Downloads & Subscription Downloads Markets Independently
Analyzed with Annual Sales Figures in US$ Million for Years
2011 through 2015 (includes corresponding Graph/Chart) III-104

Table 91: Rest of World 6-Year Perspective for Online Music
by Distribution Format - Percentage Breakdown of Dollar
Sales for Hard Format, One-off Downloads & Subscription
Downloads Markets for Years 2004, 2007 and 2010 (includes
corresmponding Graph/Chart) III-105

IV. COMPETITIVE LANDSCAPE