Blog Post

Ringtones Make Sweet Music For Record Label

Now that phones are playing master tones (actual song snippets), ringtones are becoming big business for record labels, which were excluded from profiting from monophonic and polyphonic ringtones.
“While polyphonics and monophonics only provide royalties for songwriters and song publishers, the new forms generate payments for record companies and recording artists as well. Some see even more ambitious commercial use of mobile phones in the future…Sony BMG already makes as much money from ringtones as it does from computer-based digital downloads, and ringtone revenues at rival EMI Group only slightly trail those from song downloads…The performing-rights organization ASCAP, which collects royalties for songwriters and song publishers, says the $5 million it will collect from ringtones this year already matches revenue from Internet radio, online greeting cards and other “new media” combined“.
Controversy over selling practices was relegated to the end of the article, but Jamster got in early on with a plug that the Crazy Frog Axel F single was promoting the Crazy Frog ringtone. “We’ve seen very compelling ways to promote the ringtone and promote the single. It’s sort of a virtuous cycle,” said Dan Mosher, the U.S. head of Jamster.
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