Research Company Says Ringtone Business "Declining"

More Declines For Music Ringtones

IBISWorld Forecasts Revenue To Drop For Second Consecutive , Skipping

Mature Phase Of Life Cycle

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The music ringtone market is within the decline stage of its short life cycle, according to research firm IBISWorld. The company forecasts revenue to decline for the second consecutive year – 15 percent from its $880 million peak in 2007 – totaling just $750 million in 2009. “Music ringtones practically boomed overnight, but with consecutive years of decline it seems the industry is exiting just as rapidly as it entered,” said Toon van Beeck, senior analyst with IBISWorld. “And with the ringtone market already reaching its decline stage, its life cycle is only expected to last about 15 years.”

Normal life cycles consist of three phases: growth, mature and decline. Data indicates that the music ringtone market may have directly from growth to decline. If industry revenue peaked only two years ago and is already in decline, the mature phase was completely skipped or lasted for such a short period that it went unnoticed by most observers. Surging of digital and singles, worth an estimated $1.94 billion, are the reason the eroding ringtone market. Early ringtones were bought via text and cost consumers up to $5 a song. songs can be purchased for less than a dollar now that mobile phones can connect to the Internet and music can be stored on memory like a computer.

“Mobile Phones are now truly wireless Internet devices and allow consumers to download full songs for ringtones rather than the 30-second versions available in the past,” said van Beeck. “Providers like and Amazon.com have revolutionized the way we buy and use music, driving consumers to hang-up on ringtones.”

1 COMMENT

  1. I figured this would happen. One thing is a lot of people of found that they can create their own ringtones and add them to their phone now. So why pay $5 dollars for 1 ringtone when I can use any song from my MP3 collection and make my own ringtone.

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