Overview of Mobile Landscape in US and China Factors of Mobile phone growth: China: As of Nov, 2008, there were ~6.9 billion mobile subscribers in China. That number is growing 1.01%/month and 17.51%/year. US: As of Nov 2009, there were over 234MM mobile subscribers in the United States. Mobile subscriptions are growing at a 2MM/year rate (230MM Nov 08 to 232MM Nov 09) Country Number of mobile phones Population % of mobile subscribers Data Updated Date China 703,000,000 1,335,330,000 52% Dec. 2008 USA 276,610,580 308,505,000 76% Nov. 2009
North American (US+Canada) consumer spend increased 7% YOY from ‘07 to ‘08, with a predicted 4% increase YOY from ‘08 to ‘09 and similarly from ‘09 to ’10, resulting in ~$2.2B total mobile music spend for 2010
The largest area of growth for N. America is full track music spend, projected at $406.8MM for 2010
Subscription-based services potentially will not provide sufficient revenue model for artists
Lower-end handsets prevent direct downloads
Where is it heading?
Increased Spend Forecast driven by full track music downloads