January 16, 2006
Ringtone growth standstill blamed on Crazy Frog
According to UK's Sunday Times, the controversy over the mis-leading marketing of the Crazy Frog ringtone has badly damaged this formerly fast-growing segment of Britain’s mobile-phone market.
"The £250m ringtone business had doubled in size since 2004, but last year’s row about the Crazy Frog and similar promotions has brought growth to a standstill. Ringtone sales for the final quarter of last year are expected to show a decline of 10% or more.
The heavily advertised Crazy Frog, a famously irritating jingle sold by Jamba, was the most high-profile example of a ringtone subscription service. Many consumers thought they had made a one-off purchase, and became angry when they realised they were being billed again and again.
Andrew Bud, chairman of mBlox, said tougher requirements imposed on ringtone subscriptions in August and September had hit business badly and it had still to recover.
... Other ringtone firms report a similar impact. Martin Higginson, chief executive of Monstermob, which has diversified its business away from Britain, said the ringtone business had probably been severely damaged. “The number of people downloading ringtones has increased but the revenue that’s been generated has declined.”
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