Ringback tones and mobile streaming projected to cut ringtones in 2007

New York (NY) - The ringtone market is expected to fall by 7% over last year thanks in part to an increase in the volume of mobile media streaming and the new market of "ringback tones". That’s according to projections from Broadcast Music Inc (BMI) for the rest of the year.

Estimated from BMI bring total ringtone sales to equal $550 million, a $50 dip from the $600 million in 2006. It is the first time since BMI began projecting ringtone sales more than four years ago that it expects a year-to-year decline.

Part of this is attributed to diverted sales that will instead reach the relatively new content area known as "ringback tones", which change the standard ring that the caller hears when the ringback user’s number is dialed.

In its first projection of ringback sales, BMI projects the figure for 2007 will be around $65 million.

BMI also projected that this year will see an increase in access of video and MP3-quality music on mobile phones. "We believe that the ringtone market’s growth has leveled off and the novelty phase has ended. We envision increased revenue opportunity in the streaming sectors of the mobile entertainment market, ranging from ringtones to audiovisual cellular phone TV-style offerings," said BMI VP Richard Conlon.