The music ringtone market is continuing its steady decline, according to a new study from industry research firm IBISWorld. The company forecasts that revenue will decline for the second consecutive year down 15% to $750 million from its $880 million peak in 2007.
Growing demand of downloads, worth an estimated $1.94 billion, are the reason behind the eroding mobile ringtone market according to the study. Early ringtones were bought via text and cost consumers up to $5 a song. Today songs can be purchased for less than a dollar.
“Music ringtones practically boomed overnight, but with two consecutive years of decline it seems the industry is exiting just as rapidly as it entered,” said Toon van Beeck, senior analyst with IBISWorld. “And with the ringtone market already reaching its decline stage, its life cycle is only expected to last about 15 years.”
“Mobile Phones are now truly wireless Internet devices and allow consumers to download full songs for ringtones rather than the 30-second versions available in the past,” said van Beeck. “Providers like iTunes and Amazon.com have revolutionized the way we buy and use music, driving consumers to hang-up on ringtones.”