Music industry cries foul on ringtones

BANGALORE: Did you think ringtones are just another pastime for the young and the mobile? Think again. Just a year after their introduction, ringtones are currently ruling the mobile data services space. They rake in money — the biggest beneficiary being the service providers and number of downloads growing exponentially. But the music industry is not too happy with the present state of affairs.

"It’s only in India that the mobile service providers get the lion’s share of the profits and the music industry gets a small share", says a source from the music industry. Mobile service providers in India get a sizable 60% of the revenue. For every downloaded ringtone worth Rs.7, on an average, Rs 5 goes to the service provider and the music company gets a paltry Rs 1.50. And this, just as the music industry is beleaguered by plummeting sales of music CDs and tapes. The music industry’s grouse does not end there. Copyright issues regarding ringtones is another cause of wrangling between the music companies and portals. Piracy of cassettes and CDs causes music companies a loss of up to $6 billion per year and ringtones only add to its woes.

"In countries such as the UK, where the content provider get the major share of profits from ringtones, some music companies have reported more profits from ringtones than music CD sales. This should be replicated in India too", continues the music company source.

Is the music industry’s grouse justified? "Well, they have no right to complain. We provide the infrastructure to bring this service to cell phone users. They just sit back and enjoy the royalty," says Sean Dexter, MD, Spice Telecom.

Mobile Data Services are a sunrise industry in India and ringtones are ruling the scene, at least for a moment. With better technology and more high-end handsets hitting the market, ringtomes are becoming more sophisticated and easier to download. No wonder everybody is clamoring for a share of this pie.