Ringtone business model under attack from startups
Source: RCR Wireless News
Record labels and carriers are
looking for creative ways to keep the lucrative ringtone party alive. But a
handful of startups have taken a cue from music group REM, asking, "Why don't we
give it away?''
Ringtones for years have been the most popular type of content on carrier decks,
of course, and third parties are hoping to keep the cash cow alive with new
offerings. Sony BMG last week introduced "ringles,'' a pricey offering that
bundles a ringtone with an old-fashioned CD featuring a couple of related
tracks. And Apple Inc. recently added a ringtone offering, allowing iTunes users
to spend an additional $1 to turn a snippet of a song purchased through the
popular storefront into a ringtone for its iPhone.