According to a new report by Baskerville, the increasing involvement of the major music labels in the real music
ringtone business means that revenue shares must to be revisited. However, some operators and ringtone vendors have argued that labels are becoming over-enthusiastic about the share of revenues they deserve from sample ringtones, with figures ranging between 25 – 55% of the end user price.
According to this report, the ringtone market was worth $3 billion in 2003. Of this total, authors’ societies received $148 million in royalty collections, equivalent to year-on-year growth of almost 50%. The report forecasts that the value of ringtone sales in 2008 will be $4.7 billion. Assuming that the value of traditional music sales increase’s at 2% each year, ringtones will account for around 12% of total music sales.
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