August 1, 2005
Cingular ads ring with sounds of music
Record labels are singing a happier tune with help from cell phone marketers, reports USA Today.
"Flat sales of $33.6 billion in 2004 marked the best year in five years, according to a report by the International Federation of the Phonographic Industry, the global recording industry trade group. But recordings, old and new, are getting added exposure and revenue, thanks to cell phone providers that are tapping into music to help sell their brands.
Helping to ring up music sales:
-- Ring tones. Last year, sales of snippets of songs that play when cell phones ring reached $245 million in the USA, according to Broadcast Music Inc. (BMI), an industry association for songwriters, composers and music publishers.
Ring-tone sales are expected to top $500 million this year.
"Mobile is definitely the favorite child of the industry right now," says Richard Conlon, BMI's vice president of new media. "It's come to the market really fast, it delivers and delivers money."
... Another area where many marketers, including cell phone providers, are helping to add revenue for music companies is through buying music rights to use tunes in commercials."
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