The music ringtone market is within the decline stage of its short life cycle,
according to industry research firm IBISWorld. The company forecasts industry
revenue to decline for the second consecutive year - down 15 percent from its
$880 million peak in 2007 - totalling just $750 million in 2009.
"Music ringtones practically boomed overnight, but with two 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 gone 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 demand of digital albums and singles, worth an estimated $1.94 billion,
are the reason behind the eroding mobile ringtone market. Early ringtones were
bought via text and cost consumers up to $5 a song. Today 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 iTunes and Amazon.com have
revolutionized the way we buy and use music, driving consumers to hang-up on
ringtones."
Related Reports:
Wireless Telecommunication Carriers:
http://ibisworld.com/industry/retail.aspx?indid=1267&chid=1
Major Label Music Production:
http://ibisworld.com/industry/default.aspx?indid=1004
Music Publishing:
http://ibisworld.com/industry/summary.aspx?indid=1253&highlight=ringtone
Global Music Production & Distribution:
http://ibisworld.com/globalindustry/retail.aspx?indid=2160&chid=1&rcid=0
Related Links:
Twitter: http://twitter.com/IBISWorld
Facebook: http://www.facebook.com/pages/Santa-Monica-CA/IBISWorld/121347533189
About IBISWorld, Inc.
Recognized as the nation`s most trusted independent source of industry and
market research, IBISWorld offers a comprehensive database of unique information
and analysis on every U.S. industry.With an extensive online portfolio, valued
for its depth and scope, the company equips clients with the insight necessary
to make better business decisions.Headquartered in Los Angeles, IBISWorld serves
a range of business, professional service and government organizations through
more than 10 locations worldwide.For more information visit www.ibisworld.com or
call 1-800-330-3772.
