Six major SPs join forces to explore wireless music market

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Six major SPs join forces to explore wireless music market [Copy link]

Sohu, TOM Online, Hurray Century, Kongzhong, Linktone, and Longteng Sunshine, the six major SPs (information content providers), jointly formed the first mobile phone record distribution alliance in China. In the future, the alliance will mainly promote and distribute signed records in the wireless music market.

　　It is reported that the alliance is the first digital music distribution model based on the mobile Internet platform. Lv Weigang, a well-known Internet commentator, said, "For the traditional physical record distribution model, this distribution alliance is a good change and innovation."

　　The wireless music market is an attractive market, accounting for 80% of the entire SP business. Last year, South Korean operator SK Telecom acquired YBM Seoul Records, which has a 17% share of the Korean record market, to enter the wireless music market.

　　At present, China Mobile and China Netcom have also signed contracts with EMI and Warner, two of the four major record companies, and started to get involved in SP business. Operators are no longer just network channels, but have also begun to provide information content services. This is not good news for SPs.

　　"SPs work together to promote and distribute original online music. On the one hand, it can increase the distribution efforts, and on the other hand, it can avoid direct competition with operators." Lv Weigang said.

　　Wu Feng, vice president of Hurray Century, said, "The establishment of the alliance has achieved complementary advantages among members in content, marketing and channel resources, which is also the best cooperation model for each in wireless music promotion."

　　SPs used to fight alone, each with a limited scale. "But the establishment of the alliance has changed the status quo, allowing SPs to join forces in the wireless music market." Lv Weigang believes, "and can maximize economic benefits."

　　Analysts pointed out that the establishment of the alliance marks that in the field of wireless music, SPs have found a win-win cooperation model with partners in the industry chain such as operators and record companies, and the interests of each other will be more directly tied together. The SP industry will also change from an extensive model of each doing its own thing to an intensive model of cooperation and mutual benefit.

　　Wu Feng also revealed that "the alliance will launch a series of major actions in the future, and will also integrate more powerful SPs to join in, and jointly develop the mobile music market with unlimited prospects."

　　This move is also inspiring for other SP businesses such as SMS, MMS and pictures.

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