June 5, 2003

IDC Sees Carriers Dancing in the Streets Over Ringtone Revenue Opportunity

Although the U.S. ringtone market is small in 2003, a combination of several key trends will drive the revenue opportunity for this market to more than $1 billion by 2007, according to a new study by IDC.

The U.S. market for ringtones is still in a formative stage. IDC believes momentum in this market will be driven by the increased availability of polyphonic-capable devices and polyphonic ringtone content during the next 12 to 18 months.

By late 2004 and early 2005, the U.S. market will be headed toward higher-quality music content delivered through premium wireless audio services to niche markets, phasing out standard monophonic ringtones.

IDC's recently released report, Ringing in the Revenue: U.S. Wireless Ringtone Forecast, 2002-2007 (IDC #29438), examines U.S. wireless ringtone subscribers and revenue associated with those subscribers, ringtone users by age and gender, U.S. monophonic versus polyphonic ringtone purchasers, and U.S. monophonic versus polyphonic ringtone revenue share. In addition, this study describes the current ringtone offerings of the major U.S. wireless carriers and service providers.

To purchase this document, call IDC's sales hotline at 508-988-7988 or email sales@idc.com.

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