China's Ministry of Culture recently released a report showing that China had 452 online music companies as of the end of 2011, up 28.7% over 2010.

According to the report, the growth of China's online music market in 2011 was hindered by a number of problems, including a lack of industry standards, a dearth of innovation in core business models, and insufficient original content, as well as the more obvious issue of rampant copyright infringement. This year, the MoC will devise policies aimed at promoting the development of healthy industry review mechanisms and effecting changes in the management of China's online media market, as well as encouraging innovation and supporting original and folk music. The MoC will step up its guidance of the Music Industry Standards Organization (MISO), and will begin efforts to draft online music industry standards, as well as cracking down on illegal online music sites.
 

Source:marbridgeconsulting