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Brazil to Dominate Latin American Ringtone Market
Latin American ringtones billing will reach US$1.6 Billion by 2012, with Brazil representing over 36% of the region's income, says a report from Signals Telecom. The Ring Tones markets in Argentina, Brazil, Chile, Columbia, Mexico, Peru and Venezuela combined are expected to reach a 26.75% annual growth rate during the 2007- 2012 period. However, developments in Brazil's market will depend on removing regulatory hurdles in its music industry.
Signals points out that Ring Tones market growth is possible due to an increase in the youth segment of its user base, in addition to mobile data downloading as a basic application for digital musical reproduction.
Signals considers that, in spite of its large Ring Tones sales volumes, Brazil is not the market leader for user downloads. The music industry's regulatory hurdles place a considerable limit on the Ring Tones market's development as it seeks to maintain a business model in favor of its interests. This is especially true in the movement to 'True Tones' and 'Full Tracks', products which dominate the market. "The high royalty costs demanded by the music industry is the main obstacle to overcome for the Ring Tones industry", affirmed Elias Vicente, analyst for Signals Telecom Consulting and author of the report.
The report highlights that even if the Ring Tones industry could achieve a quick solution to the royalty problem by using covers or versions of popular songs, these products could go against the industry's interests by fomenting customer dissatisfaction. "The insertion in the Ring Tones market by some players using their own artists, as in the case of Toing, could be a viable alternative for the industry's growth, particularly in countries where local music is of great importance to the public", explained Vicente.
Posted to the site on 5th February 2008