Music Industry Transition From Ringtones to iPhone Apps
Could iPhone apps be the D.O.A of ringtones? According to industry research firm IBISWorld, the company forecast a decline in the music ringtone market for the second consecutive year- down 15% from its $880 million peak in 2007, totaling just $750 million in 2009.
As the ringtone business decline in revenue, another market booms. Applications on cellular phones are becoming the new fad for the music industry. Several artist such as Sean “P.Diddy” Combs, Akon, Soulja Boy, T-Pain, Eminem, and the New Boyz have iPhone applications which promotes their albums. Recently New York’s radio station Hot 97 came out with an app for both BlackBerry and iPhone users allowing them to stream the station through their phones and allowing users to purchase a song.
In a Business Week article, analysts concur that the market for music apps is likely to grow. “It could get very big,” says Mike McGuire, research vice-president at consultant Gartner. “It could be a very powerful marketing and awareness tool.” In the coming months, other mobile app stores are expected to gather steam or come online. Google is pushing Android Market, a store similar to Apple’s but serving users of different smartphones. BlackBerry maker Research In Motion is due to launch its revamped mobile storefront. Microsoft is expected to launch an app store for Windows Mobile devices as well.
Though ring tones still remain a lucrative business the reason to the decline in sales is due to smartphones having the ability to connect to a computer through a USB connection. Why spend .99 cents to $3.49 for a 30 second snippet when you can create your own with programs such as WavePad and upload it to your wireless device for free. Unfortunately that method will be the D.O.A of the ringtone business.
The trend that will emerge is artist using phone applications to help promote album releases and encourage sales. The most unique thus far would have to be the I Am T-Pain app. These applications seem to build a stronger connection between the artist and consumer developing unique interactions. No estimates on how much these apps generate in revenue but I’m sure it adds on to every artists bottom line as they generate income from album sales, ringtones, tours and now applications, being able to milk as much as they can from today’s technology. We’ll just have to see if the apps could out last the ringtone in the product life cycle stages.
(Below are a couple of clips of some unique iPhone apps) Continue Reading »
admin on September 24th 2009 in Editorial