Music Ringtone Revenues Predicted To Decline Significantly

Posted: Sep 22 2009, 3:00pm CDT | by , Updated: Aug 11 2010, 4:24pm CDT, in News | Mobile Phones

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The mobile phone market is slowing down in many categories and along with slowing mobile phone, sales sales of accessories are dropping in some categories too. Further declines in music ringtone revenue are predicted to occur for a second consecutive year predicts research firm IBISWorld.

The research firm predicts that revenue from the music ringtone market will decline by 15% from the peak revenue of $880 million achieved in 2007. The revenue for 2009 for the industry is predicted to be $750 million.

Data compiled by the research firm indicates that the music ringtone market skipped right over the mature segment of a typical product lifestyle going from boom to decline. The decline in revenue is due in part to the fact that ringtones are much cheaper today than they were a few years ago. Many phones are also using full tracks for ringtones rather than ringtone snippets.

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