Report: Record Labels Cashing In On Master Recording Ringtones

Authored by Mark Hefflinger on May 27, 2004 - 7:01am.

London -- Record labels are beginning to see major profits from cell phone ringtones, a market that previously benefited only publishers but is now being cashed in on by labels through the introduction of "sample" ringtones, which use actual snippets of the copyrighted master recording, according to a report from London-based Informa. Record labels are charging far more for sample ringtones -- as much as four times -- than the average cost of a normal ringtone, or between 25% and 55% of the total retail price. Some master recording ringtones in Britain cost a whopping $7.35. "Demanding such high percentage rates by the record companies could certainly lead to the market being depressed," said Informa's Simon Dyson. Informa projects that music industry revenues from ringtones will reach $5 billion in 2007, up from $3 billion last year.
http://www.informa.com
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