Sales of mobile ringbacktones to grow 50 percent: Study

March 31, 2008

Richard Conlon is vice president of new media and strategic development at Broadcast Music Inc.

A new study claims that ringbacktones will cross $210 million in U.S. retail sales this year, up 50 percent from $140 million in 2007.

That prediction was from Broadcast Music Inc.’s annual mobile music market projections for 2008 and figures for 2007.

“The most important takeaway is that there are more [mobile] services on the market,” said Richard Conlon, vice president of new media and strategic development at Broadcast Music, New York.

“Now we’re seeing ringbacktones, mobile television, streaming audio come on the market with a higher trajectory, quicker and higher interval,” he said.

Broadcast Music licenses the public performing rights for the musical works of more than 375,000 songwriters, composers and music publishers.

Mr. Conlon was unable to comment at this time on what Broadcast Music ringtones and ringbacktones were performing well.

“Ringbacktones are starting to clone the growth we saw in ringtones, Mr. Conlon said. “For the first many years ringtones had steady growth.

“When you come out with the next product, [you ask] will there still be an appetite for mobile media once ringtones wane?” he said. “Ringtones are sort of the gateway products. Now we’re seeing more products coming in. We’re pointed toward healthy growth for long-term mobile entertainment.”

A ringbacktone is a piece of music that plays for callers when they place a call to a participating mobile subscriber.

Broadcast Music’s conclusions are based on data taken from the buying behavior of more than 200 million U.S. mobile subscribers.

The company also predicted that the U.S. ringtone market will continue to decline in 2008, generating approximately $510 million in retail sales for the calendar year.

This represents a $40 million, or 7 percent, reduction from calendar year 2007, marking the second consecutive year that the U.S. ringtone market has declined.

Broadcast Music put the 2007 market at $550 million in retail sales, down $50 million from the prior year. The company estimates the ringtone domain experienced sales of $600 million in calendar year 2006; $500 million in 2005; $245 million in 2004; and $68 million in 2003.

What does BMI see in terms of streaming mobile media growth this year?

Mr. Conlon said that “mobile television is also growing at a pretty impressive rate.

“Also we’re seeing the beginning of some growth in mobile audio – mobile radio and subscription music services,” he said. “Streaming radio happening on cell phones is definitely one to watch for 2009-2010.”