Ringbacks are a Positive Note for the Mobile Music Industry

2006 opened with the ringtone industry coming out of temporary insanity brought about by Crazy Frog, and ended with a whimper. According to M:Metrics, while ringtone purchasing declined in Europe and leveled out in the U.S. market, a new star was rising: the ringback tone.

The mobile measurement firm found that ringbacks have grown most aggressively in the United States, at a rate of 225 percent from the quarter ended January to the quarter ended November. Ringback subscriptions grew across Europe, at a rate of 150 percent Germany and 146 percent in the U.K. during the same period. Between July and November, ringbacks grew 12.8 percent in France and 11 percent in Spain.

Mobile Subscribers that Purchased Ringtone in Past Month 2006 (Three Month Average Ended in Month)

CountryJANFEBMARAPRMAYJUNJULAUGSEPOCTNOV
United States10.0%10.0%9.9%9.7%9.9%10.0%10.4%10.4%9.5%9.0%8.9%
United Kingdom6.8%6.5%6.3%6.4%6.0%5.7%5.4%5.6%5.5%5.3%5.1%
Germany7.3%7.5%7.2%6.9%6.8%6.5%6.6%6.4%5.9%5.3%4.7%
France   6.8%6.5%6.0%6.2%6.0%5.9%5.5%5.4%
Spain     8.0%8.9%9.1%9.1%8.7%8.4%
Italy       6.3%5.9%5.9%6.0%

Mobile Subscribers With Ringback Subscriptions in Previous Month 2006 (Three Month Average Ended in Month)

CountryJANFEBMARAPRMAYJUNJULAUGSEPOCTNOV
United States1.3%1.5%1.7%1.9%2.4%3.0%3.7%3.8%4.0%3.9%3.8%
United Kingdom0.4%0.5%0.7%0.7%0.8%0.8%0.7%0.6%0.6%0.7%0.8%
Germany0.7%0.9%1.1%1.3%1.3%1.2%1.3%1.3%1.4%1.2%1.6%
France   2.3%2.2%2.1%2.3%2.3%2.4%2.5%2.5%
Spain      9.7%9.9%10.5%10.0%10.4%

"The rise in ringbacks indicates that personalization remains an important motivation for mobile content purchases," said Jen Wu, entertainment analyst at M:Metrics. "While we see a decrease in ringtone purchases, we do see an increase in user-created ringtones. Since it's impossible to hack a ringback tone, this growing market is not threatened by piracy and end-user savvy."

In fact, the firm found that the number of users who say they made their own ringtone grew from 11.3 percent in May to 12.3 in November in Germany, from 10.2 to 12.6 percent in France, from 17.1 percent to 19.1 percent in the UK and from 5.1 percent in to 6.6 percent in the U.S., during the same period. In Spain, 9.3 percent of mobile subscribers created their own ringtone in June, more than doubling to 19.7 percent in November. Italian subscribers account for the largest percentage of ringtone creators. In August, 19.2 percent created their own ringtone, growing to 20.4 percent in November.

Below are the findings of its November Benchmark Survey.

French Mobile Subscriber Monthly Consumption of Content and Applications

ActivitySubscribers (1000s)PctPct Change
Sent Text Message30,65170.5%0.5%
Used Photo Messaging9,01320.7%(0.2%)
Browsed News and Information3,5668.2%(4.3%)
Used Personal E-Mail2,7316.3%2.7%
Purchased Ringtone2,3465.4%(1.6%)
Used Mobile Instant Messenger1,3643.1%0.9%
Purchased Wallpaper or Screensaver1,0072.3%(6.7%)
Used Work E-Mail9552.2%6.4%
Downloaded Mobile Game5771.3%8.0%

German Mobile Subscriber Monthly Consumption of Content and Applications

ActivitySubscribers (1000s)PctPct Change
Sent Text Message36,52280.3%0.2%
Used Photo Messaging9,35520.6%(1.3%)
Used Personal E-Mail2,7696.1%4.3%
Purchased Ringtone2,1384.7%(10.2%)
Browsed News and Information1,5263.4%(1.1%)
Used Mobile Instant Messenger1,3743.0%10.2%
Used Work E-Mail1,2682.8%9.5%
Downloaded Mobile Game1,1772.6%1.0%
Purchased Wallpaper or Screensaver9212.0%(6.3%)

Italian Mobile Subscriber Monthly Consumption of Content and Applications

ActivitySubscribers (1000s)PctPct Change
Sent Text Message36,95785.0%3.3%
Used Photo Messaging13,32230.6%(0.3%)
Used Personal E-Mail3,9989.2%3.0%
Browsed News and Information3,0747.1%7.4%
Purchased Ringtone2,5966.0%4.7%
Used Mobile Instant Messenger2,5605.9%7.1%
Used Work E-Mail2,0114.6%3.4%
Downloaded Mobile Game1,6623.8%8.4%
Purchased Wallpaper or Screensaver1,3053.0%10.2%

Spanish Mobile Subscriber Monthly Consumption of Content and Applications

ActivitySubscribers (1000s)PctPct Change
Sent Text Message26,17484.4%1.5%
Used Photo Messaging8,77128.3%(2.6%)
Used Personal E-Mail2,9109.4%(3.4%)
Purchased Ringtone2,5988.4%(2.5%)
Used Mobile Instant Messenger2,2867.4%(1.8%)
Browsed News and Information2,1366.9%(3.4%)
Used Work E-Mail1,7335.6%2.6%
Downloaded Mobile Game1,5985.2%3.8%
Purchased Wallpaper or Screensaver1,0283.3%(0.5%)

UK Mobile Subscriber Monthly Consumption of Content and Applications

ActivitySubscribers (1000s)PctPct Change
Sent Text Message37,95686.3%1.3%
Used Photo Messaging13,20430.0%(1.1%)
Browsed News and Information6,33914.4%2.0%
Used Personal E-Mail3,0717.0%9.4%
Purchased Ringtone2,2485.1%(3.1%)
Downloaded Mobile Game2,0614.7%5.6%
Used Mobile Instant Messenger1,8434.2%6.8%
Used Work E-Mail1,6353.7%10.4%
Purchased Wallpaper or Screensaver9262.1%(3.1%)

USA Mobile Subscriber Monthly Consumption of Content and Applications

ActivitySubscribers (1000s)PctPct Change
Sent Text Message76,81438.4%2.4%
Used Photo Messaging29,79714.9%2.4%
Browsed News and Information21,31210.7%(4.5%)
Purchased Ringtone17,7958.9%1.7%
Used Personal E-Mail16,7278.4%(2.3%)
Used Mobile Instant Messenger12,7726.4%(10.1%)
Used Work E-Mail9,9975.0%(1.7%)
Downloaded Mobile Game7,3473.7%8.4%
Purchased Wallpaper or Screensaver5,9123.0%0.8%
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Posted to the site on 22nd January 2007

Posted to: www.cellular-news.com/story/21506.php