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Report: U.S. Ringtone Sales Fell 24% in 2008

Authored by Mark Hefflinger on August 6, 2009 - 9:38am.
Monterey, Calif. - U.S. mobile phone ringtone sales dropped 24% between 2007 and 2008, propelled downward by consumers who figured out how to create ringtones from their own music libraries, according to a report from market research firm SNL Kagan.

Ringtone sales fell from $714 million in 2007 to $541 million in 2008, which pushed overall U.S. mobile music revenues down for the year.

The percentage of U.S. mobile music revenue deriving from ringtones fell from 80% in 2005 to 63% in 2008.

The firm predicted that mobile carriers will begin to discount ringtones in a bid to increase sales, and said increased ringback tone sales will recover lost profits.

"We estimate [ringback tones] grew at a 37% compound annual growth rate from 2005 to 2008, from $77 million to $199 million."

 

Related Links:
http://www.snl.com/SNL-Financial/Press_Releases/20090805.aspx

Published in DMW Daily, August 6, 2009
tags: Mobile | Music | Reports | Ringtones | Research | SNL Kagan | Ringback Tones |



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