Ringtones to start long decline this year.
updated 03:55 pm EST, Mon January 18, 2010
Cellular ringtones are about to start a long decline that ultimately kills the business, IBIS World says in a new study. Despite being worth as much as $881 million in 2007, yearly ringtone sales are estimated drop to $750 million for this year and could die out entirely by 2016. The death of the format is likely attributable to the rise of messaging phones and smartphones. As more phone owners either use SMS or Internet-based services like Twitter to communicate, they’re less likely to care about voice calls and the ringtones that accompany them.
The high prices of ringtones, usually between $2 and $3 per clip, is also likely to deter those who aren’t either already disposed to ringtones or who are cost-conscious. Part of the fall may also stem from the lack of software locks on ringtones. Hardware like the iPhone and most Android devices have the freedom to use any suitably formatted audio file as a ringtone where some phones were artificially limited to built-in ringtones or those purchased through the carrier.
By Electronista Staff
http://www.electronista.com/articles/10/01/18/ringtones.to.start.long.decline.this.year/
