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Strategies & Market Trends : Technical analysis for shorts & longs
SPY 691.72-0.1%Jan 16 4:00 PM EST
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To: Johnny Canuck who wrote (44104)4/8/2007 3:50:47 PM
From: Johnny Canuck  Read Replies (2) of 69827
 
April 8, 2007
The Count
Mobile Ring Tones Starting to Lose Their Revenue Zing
By PHYLLIS KORKKI
As CD sales nose-dive, the music industry has been relying on cellphone ring tones as one way to lift sagging revenues. Ring tones have been such a big hit that Billboard even has charts for them now. (The No. 1 ring tone from a CD last week was “This Is Why I’m Hot” by the rapper Mims.)

But now the ring-tone market is maturing. Retail sales of ring tones are expected to drop this year by $50 million, to $550 million, compared with 2006, according to Broadcast Music Inc., which handles licensing agreements for the tones.

The big growth now is in ring-back tones, which are hot in Asia and spreading west. In case you are old and out of it, a ring back is music that the caller hears while waiting for his or her call to be answered (instead of a beep or a b-rrrrrrrrring).

In its first forecast on ring backs, BMI is estimating that they will bring in approximately $65 million in retail revenue this year.

Whether ring backs will become as popular as ring tones remains to be seen. But one thing is certain: they are much less intrusive. With a ring back, Mims tells just one person how hot he is. With a ring tone, he lets the whole room know.PHYLLIS KORKKI

<img>http://graphics8.nytimes.com/images/2007/04/07/business/08count.190.jpg</img>

nytimes.com
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