The music copyright competition in China is anticipated to become much more intense with the launch of Apple Music in the country, according to tech industry analyst Li Anlin.
Apple launched Apple Music, its music streaming service, in China on Sept. 30.
According to Eddy Cue, Apple's Senior Vice President of Internet Software and Services, China is already the company's largest market in terms of app downloads.
China's business model is to offer each potential subscriber of Apple Music a free trial lasting three months. This is especially useful for China, a country used to free Internet content.
After the trial period, a monthly subscription to Apple Music will cost subscribers a token amount of 10 yuan ($1.57) per person or 15 yuan ($2.36) for a shared device to be used by a maximum of six subscribers.
Music streaming has had a rough start in China, with Chinese companies, including Internet giants Baidu, Alibaba and Tencent, having failed to find a profitable model for music streaming services, even with music apps popular among mobile users, according to Li.
With the many companies competing in the industry, including NetEase, Omusic and Kugou, record companies have the capability to charge more for music, taking advantage of each company's need for exclusive content, said Li.
Internet firms pay record companies, such as Warner Music, Sony, Universal and Rock, over 100 million yuan ($15.74) annually.
Li also pointed out that Alibaba's music service may become a casualty of Apple Music's rise as a market leader.