Ringtones and ITunes Saving Australian Music Market

Bernard Fanning and Augie March may be the hot tips for glory at this weekend's ARIA awards, however business information analysts IBISWorld say mobile ringtones and Apple iTunes will be the real stars - and saviours - of the Australian music industry in 2006 and beyond.

With CDs likely to be virtually obsolete within 10 years, and the revenue growth predictions for the recorded music industry steady at 2.1%, IBISWorld General Manager (Australia), Mr Jason Baker, said digital music distribution holds the key to the industry's future survival and success.

"Apple iTunes launched this time last year in Australia and mobile ringtones are driving the resurgence in the recorded music industry, with iTunes expected to grow the legitimate downloads market in this country by tenfold,' said Mr Baker.

"This year we'll spend about AU$30 (US$23) million on digital downloads. Next year this figure will almost double and by 2010, it is forecast we will be spending an incredible AU$200 (US$154) million on our favourite downloadable tracks. Over the same period, the ringtone market is expected to post double digit growth, compared to low single digit growth for the total recorded music industry.'

Songwriters and publishers are also cashing in on the popularity of the mobile phone ringtone market, reaping royalties of around 11% per ringtone downloaded, compared with 6% for the traditional CD format, and ringtones are already outselling CD singles in the Aussie market. And, said Mr Baker, the potential growth in the market is unlimited, with just 10% of Australia's 19.8 million mobile phone users currently downloading ringtones and/or graphics, and 3G mobile phone technology becoming increasingly widespread."

Posted to the site on 31st October 2006