Apple Inc. launched its Apple Music service in China Wednesday, tapping into a fiercely competitive market believed to be one of the largest in the world.
Chinese customers can also access iTunes Movies and iBooks online thanks to cooperation with the domestic film industry and local publishers.
Apple Music was introduced in more than 100 countries and regions following an announcement at Apple's Worldwide Developers Conference (WWDC) in June.
The first three months for Chinese users will be free, as in other markets. The monthly subscription fee is 10 yuan (about 1.5 U.S. dollars), and the family plan provides the service for 15 yuan for up to six members with individual accounts.
The prices are less than one-sixth of those for the U.S. market.
"We think the price of 10 RMB is hard to beat for all the music and all the sensational products like radio, movies and books," said Eddy Cue, Apple's senior vice president of Internet Software and Services, in a tele-briefing on Tuesday. He said Apple wants to be very competitive in the Chinese market, where most songs and movies are available online for free.
He said Apple's service is unique for its cloud music library and ability to sync and save a user's spot in a book or song when switching between devices.
In 2013, China's leading search engine Baidu bought and launched Baidu music. Alibaba, the e-commerce giant, bought music service Xiami, and Netease launched its cloud music service. Social media and games leader Tencent inked an agreement with Sony last December to jointly promote authorized digital music services in China.
Apple Music is not the first to the market, but it may be arriving at the right time.
In July, China's top copyright regulator announced stricter rules for music streaming, demanding online streaming services stop providing unlicensed music to users. The regulation will boost licensing fees for high-quality music and sharpen competition in the sector.
"We will absolutely establish and build relationships with the local music community," said Cue, adding that Apple Music will try to discover artists and bring better music to customers.
Also through the iTunes Store, customers can download some of the latest Hollywood blockbusters as well as many local titles.
On local regulations and supervision, Cue said that Apple always complies with local laws and regulations wherever it operates. ' "We work closely with government and regulators for things like App Store," Cue said.
He said App Store in China has become the largest market in the world for app downloads, but he did not give specific figures.
Analysts believe it will take time for Apple Music to win market share in China since customers are used to free services and there are quite a few service providers who do not charge or charge very little.
But the "free lunch" will not last forever, and in the long run paying for music, movies and books will become common among Chinese consumers.
The volume of China's digital music market was estimated at 12.6 billion yuan for 2015, an increase of 30 percent year on year, according to a report by Analysys, a leading information product and service provider in China's Internet sector.
As the country's mobile music copyright environment improves, music service platforms will supplement existing content to meet the demands of users, said the report.
According to data in July, the country's top three music services, QQ, Kugou and Kuwo, took 40.7 percent, 28.8 percent and 22 percent of the country's market respectively. Apple's entry will change the situation soon.
