Hong Kong: The Asian story continues to glow.
By 2011, the Asia Pacific region will represent 33 per cent of global music market, and 40 per cent of global digital revenues. Advanced mobile networks/handsets and expanding broadband penetration, not surprisingly, will be the key growth drivers in the region.
These were some of the findings shared by PricewaterhouseCoopers' Global Entertainment and Media Practice Leader Marcel Fenez in his presentation on Asian Fables, Facts and Figures at the Music Matters here today.The digital migration in the music sphere is happening fast but is not paying enough, he said. Fenez said that the global music market will continue its decline till 2011. However, the Asia Pacific music market will grow from US nine billion dollars to 10 billion dollars by 2011. While physical sales will decline at a nine per cent compound annual rate, the digital music market in the area will grow at 30 per cent.
The margins from the sales of digital music are 15 per cent higher than those from physical formats, allowing labels to receive a higher share of profits, he noted. Asia constitutes 60 per cent of the world's mobile music market, three times the size of the US. Japan, China and S Korea lead the charge, cornering 95 per cent of the Asian market.
Internet music leads in south Korea currently, but Japan is tipped to turn the scales by 2010. Better broadband connections, improved intellectual property environment and the ability to 'side load' from the internet to mobile or personal devices will all contribute to the changing internet music landscape, Fenez said.