US Ringtone Sales Expected to Decline in 2007
Published on: 8th Apr 2007
Note -- this news article is more than a year old.
Broadcast Music (BMI) has released its annual projection for U.S. ringtone sales and for the first time released a U.S. ringback tone market projection for 2007 estimating that the 2007 music ringtone market will dip to USD550 million in retail sales down USD50 million from calendar year 2006.
BMI says that it has pegged the market at USD600 million in calendar year 2006, USD500 million in 2005, USD245 million in 2004 and USD68 million in 2003.
BMI projects that ringbacks will generate approximately $65 million in retail content revenues in 2007, the company's first market estimate of the long-awaited rollout of the ringback tone market.
BMI's estimates are based on more than 520 million individual, detailed ringtone transactions analyzed by the organization over the past 12 consecutive quarters. BMI tracks census sales data on more than 325 outlets for the sale of mobile entertainment in the U.S.
"As we forecasted last year, the ringtone market matured in 2006. The slowdown in ringtone growth, however, was partially offset by the first wave of promising U.S. growth in ringback tones," said BMI Vice President of New Media and Strategic Development, Richard Conlon. "We believe that the ringtone market's growth has leveled off and the novelty phase has ended. We envision increased revenue opportunity in the streaming sectors of the mobile entertainment market, ranging from ringtones to audiovisual cellular phone TV-style offerings."