September 13, 2004
Record Co. ringtone sales slow
Mobile Tracker reports on a WSJ article on how record companies are not seeing the profits once forecasted for ringtone sales. However, it may not be the business itself, but the legalities:
"That snafu shows how new technology is once again snarling up the music business. The ringtone market, once seen as the industry's next cash cow, has become a dizzying free-for-all, stymied by nightmarish contractual disputes, conflicting technical requirements and the old specter of piracy. Losing out could be a big blow to an industry that most recently missed the opportunity to control the sale of music online".
The market for ringtones in the US is about $300 million according to the article. While that may seem large (and certainly can keep a few people employed), the market in Japan is $1 billion, despite the much smaller population of Japan.
Read also Rafat Ali's take take on the WSJ article and yesterday's post linking to Reuters: "Ring tones slow to rock U.S. market".
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