Emerging Markets Seen As Next Growth Area For Music Business

As the digital music revolution spreads worldwide emerging markets, particularly China and Russia, have seen increasing start-up and partnership activity. Most emerging markets have been plagued by both physical and digital piracy, but that has not stopped new and old school music companies from making deals in search of increased revenue.

In August, Warner Music Group licensed hit tracks to Russian mobile carrier Vimpelcom. Last month digital distributor The Orchard jumped into the Chinese market via a partnership with Top100.cn only weeks after completing a similar deal in Russia and Orchard CEP Greg Scholl was reportedly overseas this past week working on additional partnerships.

Also last week shutting down popular Russian download site allofmp3.com became a key sticking point at WTO trade talks. "I have a hard time imagining Russia becoming a member of the WTO and having a Web site like that up and running that is so clearly a violation of everyone’s intellectual property rights," stated U.S. Trade Representative Susan Schwab. The owners of the site shot back with. "Susan Schwab markets us so effectively – she could already be our press secretary."  But all eyes are pointed eastward making change inevitable.

TOMORROW: AN EXCLUSIVE INTERVIEW WITH GARY CHEN CEO OF CHINESE DOWNLOAD LEADER TOP100.CN.