August 31, 2003
Sometimes the ring tone is even more popular than the CD
One of the most popular songs in the country last week, "Crazy in Love" by Beyoncé Knowles and featuring Jay-Z, was not released only on compact disc and to radio stations. It was also sent to cellphone users who wanted to download it as their ring tone, according to The New York Times.
"Dance-hall reggae artist Sean Paul, who records for the Warner Music Group, recently sold more copies of a synthesized digital snippet of his song "Get Busy" than CD singles of the same song. The snippet cost $2.50, compared with about $3 for a CD single.
Some 50 to 60 percent of all cellphones in the United States can download ring tones, according to Alex Slawsby, an analyst of mobile devices at IDC Research. All major carriers offer the tones, and the market is expected to grow in part because virtually all new phones can receive them. Sometimes, an image of the artist appears on the phone as the music plays.
Cellphone users made 4.8 million purchases of ring tones in the United States in 2002, according to IDC, producing revenue of $16.6 million. The Yankee Group, another research firm, predicts that the revenue will be far higher this year, at about $50 million. Verizon Wireless, for instance, says 2.5 million of its customers are buying ring tones each month.
These numbers have not been lost on the major record labels, which earn royalties for the use of their master recordings. The labels want to push the ring-tone market toward recorded music and away from synthesized ring tones, or computerized versions of songs. When songs are synthesized, only the songwriter is paid a licensing fee".
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