Record Co. ringtone sales slow
Sep 13 2004 - 04:20 AM ET | Ringtones
The Wall Street Journal writes
[Subscription only] in today's issue that record companies are not seeing the profits once forecasted for ringtone sales. However, it may not be the business itself, but the legalities:
bq. That snafu shows how new technology is once again snarling up the music business. The ringtone market, once seen as the industry's next cash cow, has become a dizzying free-for-all, stymied by nightmarish contractual disputes, conflicting technical requirements and the old specter of piracy. Losing out could be a big blow to an industry that most recently missed the opportunity to control the sale of music online.
The market for ringtones in the US is about $300 million according to the article. While that may seem large (and certainly can keep a few people employed), the market in Japan is $1 billion, despite the much smaller population of Japan.