Regarding Google and China - Google is fighting hard to dominate in China and surpass its #1 rival, Baidu. The downside to Google's new music offer is that the music may not be the latest release considering most record companies will wait before sharing music & profit w/Google. Baidu currently has a music sharing feature, mostly illegal since Baidu is being sued by a number of record companies. To stay ahead of Google, I imagine Baidu will approach most record companies about a new music sharing deal. And most will partner w/Baidu - they have more to gain with a partnership and by sharing profits.
http://www.forbes.com/2009/03/31/google-baidu-music-markets-equity-china.html
On another note, I thought it was interesting that the Chinese web portal and social network operator Tencent financially relies more on the selling of virtual goods rather than advertising . It sells about $750million in virtual good a year - instant messaging upgrades, wallpaper, etc. Online advertising is a very small portion if its overall revenue (10%). This is a little outdated but 88% of Yahoo's total revenue in 2006 came from marketing.
http://www.forbes.com/2009/03/19/china-social-media-tencent-technology-paidcontent.html
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