Feeds

Labels to delve deeper into ringtones

Money-making scheme no 93

  • alert
  • submit to reddit

Boost IT visibility and business value

Record companies may buy up mobile phone ringtone providers and are likely to go a step further by setting ringtone studios, a new report says.

In the report, research company Strategy Analytics forecasts that sales of personalisation data services for mobile phones will rise from USD3 billion this year to USD6 billion in 2008. It also said that although the sales will come from services such as mobile phone graphics, icons, screen savers and novelty voice mail, it is ringtones that will dominate.

Compelling evidence to support this claim is already surfacing, with the Japanese Society for the Rights of Authors, Composers and Publishers reporting a doubling of ringtone sales in 2002 over the previous year, with an average of 110 million ringtones being downloaded each month.

What's more, the company's report "Real Music Ringtones: Changing Dynamics in the USD4 billion Ringtone Market," predicts that record companies will consider acquiring ringtone producers and distributors to cash in on the burgeoning sector, although it's also anticipated that the big labels will continue to license their music to independent ringtone producers.

According to Strategy Analytics senior analyst Nitesh Patel, just how directly involved in the sector record companies will become remains somewhat unclear. But what is clear is that over the coming months and years, consumers will begin to demand "real" music ringtones, as opposed to the current simple tones or even the more advanced polyphonic ringtones.

As this demand grows, news ringtones will have to be created using master samples from the big record labels, allowing the record companies to take a more aggressive stance in the sector. Strategy Analytics said that in this environment, existing ringtone solution providers will be forced offer greater value to mobile operators who and record companies if they are to withstand these pressures.

"We see ringtones as a catalyst for record companies to become more actively involved in ringtone market, in light of dwindling CD singles sales, as is often reported, and we advise that this would be a key strategy for them moving forward," Patel said.

While strategy analytics believes that the increasing number of mobile handsets with open operating systems and Bluetooth will make file sharing or file conversion much easier, it advises carriers to remain focused on issues such as DRM (Digital Rights Management) and ease of payment through mobile channels.

According to Patel revenues from the real music ringtone market would help counteract the losses record companies have incurred as a result of MP3 sales and illegal file swapping, and that MP3s, ringtone sales could be monitored much more easily.

© ENN

Secure remote control for conventional and virtual desktops

More from The Register

next story
UK fuzz want PINCODES on ALL mobile phones
Met Police calls for mandatory passwords on all new mobes
Don't call it throttling: Ericsson 'priority' tech gives users their own slice of spectrum
Actually it's a nifty trick - at least you'll pay for what you get
Three floats Jolla in Hong Kong: Says Sailfish is '3rd option'
Network throws hat into ring with Linux-powered handsets
Fifteen zero days found in hacker router comp romp
Four routers rooted in SOHOpelessly Broken challenge
Netflix swallows yet another bitter pill, inks peering deal with TWC
Net neutrality crusader once again pays up for priority access
New Sprint CEO says he will lower axe on staff – but prices come first
'Very disruptive' new rates to be revealed next week
US TV stations bowl sueball directly at FCC's spectrum mega-sale
Broadcasters upset about coverage and cost as they shift up and down the dials
Tech city types developing 'Google Glass for the blind' app
An app and service where other people 'see' for you
Canadian ISP Shaw falls over with 'routing' sickness
How sure are you of cloud computing now?
UK mobile coverage is BETTER than EVER, networks tell Ofcom
Regulator swallows this line and parrots it back out at us. What are they playing at?
prev story

Whitepapers

Implementing global e-invoicing with guaranteed legal certainty
Explaining the role local tax compliance plays in successful supply chain management and e-business and how leading global brands are addressing this.
Top 10 endpoint backup mistakes
Avoid the ten endpoint backup mistakes to ensure that your critical corporate data is protected and end user productivity is improved.
Top 8 considerations to enable and simplify mobility
In this whitepaper learn how to successfully add mobile capabilities simply and cost effectively.
Rethinking backup and recovery in the modern data center
Combining intelligence, operational analytics, and automation to enable efficient, data-driven IT organizations using the HP ABR approach.
Reg Reader Research: SaaS based Email and Office Productivity Tools
Read this Reg reader report which provides advice and guidance for SMBs towards the use of SaaS based email and Office productivity tools.