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Press Release:
Ringtone Revenues to Reach $6.6bn by 2009
Press Release
News Article November 2006
According to the latest figures from Juniper Research, the global market for mobile ringtones will continue to grow strongly, driven by high growth in developing markets and the widespread introduction of new and innovative personalization products. Developing markets will lead a 22% rise on current total ringtone revenues to $6.6bn by 2009.
In contrast, more developed regions, such as Europe, will see a relatively sluggish growth over the next five years due to tough competition resulting in falling prices and restricted growth. Ringtone market share will increasingly come under pressure from other forms of mobile music content such as streamed or downloaded full track music.
Developing markets such as South America and the 'Rest of the World' will experience over 90% growth in revenues over current levels by 2009, whilst Europe will slow to 10% growth, with revenues peaking at $2.3bn and declining slightly thereafter. Of the developed markets, North America is expected to show the strongest growth, with revenues growing 50% by 2009 over the current level.
Report author Bruce Gibson said, "North America is taking on board mobile phone personalization products with real enthusiasm. The fastest growth in mobile music revenues will come from this market and from the many emerging markets with ringtones at the forefront, as has been the case in more developed markets." He continued "There is no evidence that the demand for this type of personalization product is diminishing globally. Technology and product availability will determine the exact mix in any market, but the trend is clear - one of product substitution (e.g. realtones and video ringtones), rather than product type obsolescence."
With product innovation, and subscriber growth continuing, especially in developing markets, "coupled with a rise in disposable incomes particularly among the young and 'upwardly mobile', the prospects for mobile personalization products are good. And with an increasing amount of ringtone business moving off-portal in developed markets, competition will drive product and marketing innovation and boost demand in these markets as well."
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