June 11, 2004
Record labels crack down on soundalike truetones
The UK music industry has begun to crack down on the mobile industry's use of cover versions for master recording ringtones, according to newmediazero.
"Mobile industry insiders report that record companies have started to pressure mobile content providers NOT to develop or market cover version, or soundalike, truetones (also known by other terms such as realtones), for fear of losing revenues.
Regardless, the mobile industry is determined to press ahead with their own development of sound alike tones, as they want the revenues and because it's too difficult to strike deals with record companies.
Record companies are hinting that sound alike tones are illegal, which they're not,' said David Simmons, chairman of Songseekers. 'They're saying to content providers 'if you take sound alike tone versions we won't deal with you'.'
Simmons believed the market would shake out to a two-tier pricing model with sound alike tones and original recordings.
This was an opinion backed by Wayne Pitout, CEO of iTouch, which launched its first sound alike tones this week. Pitout said that iTouch would market them more cheaply than cover mastertones.
'We've taken the decision that we need to be in this space,' he said. 'We're happy to push cover [masters] as well if the royalties come down.'
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