November 15, 2006
Music Ringtones are Set to be Managed by Record Labels as a New Recorded Music Format
According to a Research and Markets, music ringtones in the future will be managed by record labels as a new recorded music format. Industry incumbents are finding that this shift will truly be a case of black and white. [via
"The catalyst of such a fundamental shift is the transition from monotonic and polyphonic ringtones to real music ringtones which has allowed the record labels to enter the market for the first time. This volume contains an analysis of the key trends which are shaping the development of the new ringtone industry.
Because ringtones and digital songs offer fundamentally different value sets, they are different product categories, each of which will be characterised by different pricing, promotion and positioning: the fact that a real music ringtone is simply an excerpt of a digital song is irrelevant from a marketing perspective.
... Now, through a range of sometimes aggressive initiatives the record labels, especially the majors, are sending a clear signal to the industry that they see themselves at the top of the ringtone food chain: having arrived at the table five years late, the label's are hungry and are in no mood to pussy-foot around with business partners."
Image from Rare Records
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