April 13, 2006
Ringtones: The sound of money
The music industry may be in a state of flux but artists and record labels are hoping ringtones can help boost overall sales. CNNMoney reports.
"U.S. ringtone sales totaled $500 million last year and should increase to $600 million this year, according to data from songwriter and music publisher trade group BMI. Globally, ringtone sales were $4.4 billion last year, according to Billboard, up from $3.7 billion in 2004.
By comparison, the Recording Industry Association of America (RIAA) said that sales of physical CDs, cassettes and videos fell 7.6 percent last year.
... EMI Group, one of the world's largest music companies, said that mobile music sales increased nearly 140 percent during the first six months of its most recent fiscal year.
Passing fad or ringing in sales for the next few years?
But one wireless analyst said he's not sure how much longer the music industry can depend on strong growth in ringtone sales.
... "People that were enthusiastically buying ringtones are now buying phones that can play MP3 files. That may help to sweep ringtones aside. I'm not saying ringtones will vanish but I don't see huge growth," David Chamberlain, principal analyst with tech consulting firm In-Stat said.
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