Tuesday, June 01, 2004
Posted by Roberto
10:59 PM
0 comments
STEREOPHONIC RINGTONES:
THE MUSIC LABELS ARE BACK!
Ringtone sales are a strong side business for the music industry.
According to T&F Informa this market is expected to grow from $3.0 billion in 2003 to over $5.0 billion in 2007.
Monophonic | Polyphonic
Monophonic and polyphonic tones are basic renditions of a sound recording. Royalty payments are generally collected by artists and music publishers (at a rate of roughly 10 percent).
Stereophonic
The latest stereophonic ringtones (sample ringtones) are pulled from actual studio recordings, allowing record labels to demand mobile operators or other ringtone resellers to pay them a "fat" royalty rate (between 25 percent and 55 percent of the total retail price for the sample ringtone). This is a pretty lucrative business given the fact that sample ringtones carry a price tag four times higher than the typical Internet download price of 0.99 euros per song.
Price
I believe sample ringtones prices will start moving from 4 euros to 1 euro when most people will own phones like the Samsung Anycall SPH-V4300 (introduced in the Korean market February of this year): a clamshell phone that comes with the MP3 playback function, a 1.3-million-pixel digital camera, 96 MB internal memory and an external memory slot.
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