Warner’s ringtone sales echo industry woes

The FT reports that sales of Warner Music ingtones in the US declined in the final three months of last year.

"Warner announced a $16m (£8m) first-quarter loss, a reminder of the struggle music companies face as they try to develop durable new digital products to make up for the continued erosion in physical album sales.

The US ringtones market grew 45 per cent to $873m in 2006, according to Jupiter Media. At the time it was viewed by many music executives as a vast source of new profits.

Warner’s results on Wednesday appeared to confirm other recent reports that the category had seen growth in international markets reach a plateau.

Jupiter predicts sales in the US will top out at no more than $1bn."

emily | 8:25 PM | Random Stats |
The Permanent Link to this page is: http://www.textually.org/ringtonia/archives/2008/02/018958.htm