music matters 2008 china music overview june 2008

June 2008June 2008

China Music Overview

WILLIAM BAO BEAN

SOFTBANK CHINA & INDIA HOLDINGS

WILLIAM BAO BEAN

SOFTBANK CHINA & INDIA HOLDINGS

2

China total end user spend on mobile music

Source: SBCI, Company reports

0.0

500.0

1000.0

1500.0

2000.0

2500.0

2007 2008F 2009F

Unit: US$m

3

SP and carrier ex-net sales on mobile music

Source: SBCI, Company reports

0.0

500.0

1000.0

1500.0

2000.0

2500.0

2007 2008F 2009F

Wireless Service Providers Carriers

Unit: US$m

4

Label mobile sales from SP and carriers

Source: SBCI, Company reports

0.0

500.0

1000.0

1500.0

2000.0

2500.0

2007 2008F 2009F

Wireless Service Providers Carriers

Unit: US$m

5

Int’l label mobile sales from SPs and carriers

Source: SBCI, Company reports

0.0

500.0

1000.0

1500.0

2000.0

2500.0

2007 2008F 2009F

Total int'l publisher mobile music revenue

Unit: US$m

6

China total end user spend on music

Source: SBCI, Company reports

0.0

500.0

1000.0

1500.0

2000.0

2500.0

2007 2008F 2009F

Mobile Offline

Games Online services

Online Advertising

Unit: US$m

7

China int’l label music sales

Source: SBCI, Company reports

0.0

500.0

1000.0

1500.0

2000.0

2500.0

2007 2008F 2009F

Mobile Offline

Online Services Online Advertising

Games

Unit: US$m

8

China offline physical music spend

Source: SBCI, Company reports

0.0

50.0

100.0

150.0

200.0

250.0

2007 2008F 2009F

Offline

Unit: US$m

9

China int’l label sales ex-mobile & offline

Source: SBCI, Company reports

0.0

50.0

100.0

150.0

200.0

2007 2008F 2009F

Mobile Online Services

Online Advertising Games

Unit: US$m

10

China music model

Source: SBCI, Company reports

Nothing really changed on carrier side Carrier competition and 3G should shake things up but only gradually Online gaming Online services Online advertising

2007 2008F 2009FTotal end-user music spend 1713.7 1933.7 2323.8Total end-user mobile music spend 1509.4 1745.6 2068.2Offline end-user music spend 196.0 147.0 176.4Games licensing 7.0 26.0 33.5Online services fees 1.3 3.5 15.2Online advertising 0.0 11.6 30.4Unit: US$m

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NBA Jam

Source: NBA/Getty Images

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Thank You!

William Bao BeanPartner

wbean@softbankci.com +86 139 1789 8171

+852 9131 0218