*A correction has been made to the original version of this story.

New York - Performing rights organization BMI has said in its third annual projection of U.S. ringtone sales that it expects an 8% downturn in 2007, with sales dipping to $550 million.

BMI tracked $600 million in ringtone sales in 2006, $500 million in 2005, $245 million in 2004 and $68 million in 2003.

"As we forecasted last year, the ringtone market matured in 2006," said Richard Conlon, BMI vice president of new media and strategic development.

"The slowdown in ringtone growth, however, was partially offset by the first wave of promising U.S. growth in ringback tones."

BMI said in its first-ever ringback tone projection that the newer format will generate $65 million in U.S. sales this year.

The organization's data is based on processing of more than 520 million individual ringtone sales since 2001, through more than 325 outlets. 

*Correction: The original version of this story incorrectly referred to the report as BMI's first ringtone projection. It is BMI's third ringtone projection, and first ringback tone projection.

Related Links:
http://www.bmi.com/news/entry/534672