October 30, 2006
Record labels sell ringtones directly to fans
Record labels have latched onto the trend of selling ringtones and other mobile content directly to fans, rather than relying solely on wireless operators to generate sales, reports Reuters.
""I don't think you will see a (marketing) tool coming out of Atlantic Records -- anything from an album, flier or advertisement -- that doesn't have some sort of mobile promotion," says Cyndi Allnot, Atlantic Records' mobile marketing manager.
... Compared with other entertainment industries, like film or TV, the music industry is more sophisticated in its usage of text messaging as a promotional too. The music industry is more progressive because they are able to immediately see the financial gain" through ringtone sales, saysaccording to Dov Cohn, VP of product management and strategy at Motricity "and they're looking to take more control over it and build their brands more directly."
In some cases, labels can even charge a fee for the text messages sent in response to recoup their marketing costs, without selling a thing."
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