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China pumps up the volume

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Several mainland companies are positioning themselves to take advantage of what is expected to be the next phase of the mobile music sector's evolution, where songs will be downloaded from the internet or over mobile phone networks.

Two of the most ambitious and well backed are Shenzhen-based A8 and Rock Mobile in Guangzhou.

Both buy rights from musicians and record labels, licensing those rights to mobile operators and others, but they do not always compete directly. In fact, A8 buys some rights from Rock Mobile, which started out as the digital music arm of Taiwan's Rock Music label and is majority owned by Rock Music.

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A fully decked-out mobile phone is a must-have accessory for trendy, under-30-year-old mainlanders, beginning with a shiny new handset and ending with the latest ring tones and ring-back tones.

Starting almost from scratch three years ago, the industry supporting mobile music downloads and providing related services - such as voice recordings of favourite pop stars - is now worth billions of yuan each year. In a market where the mobile phone is an entertainment device and status symbol, it is not surprising that these services have taken off.

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Moving beyond ring tones and ring-back tones may see A8 and Rock Mobile staking out different parts of the mobile music business. What they do share in common is a belief that digital music can thrive in China, despite rampant piracy.

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