$4.7 Billion Big Bucks for Ringback Tones by 2012, Says Multimedia Intelligence

Ringback tones are on track to
become the most attractive mobile content category by 2012, according to new
market research from MultiMedia Intelligence. With worldwide revenue nearly
tripling to $4.7 Billion, ringback tones will fall just short of mobile gaming
revenue in capturing the largest share of the mobile premium content market
(not including mobile video and mobile TV).

Overall, the global retail
market for mobile premium is projected to reach $29 billion by 2012, according
to MultiMedia Intelligence. Developed markets, such as Japan
and Korea, have
seen dramatic growth in premium content, with some operators seeing data
revenue exceed 30% of total service revenue. As key Asian markets continue to
evolve, growth has shifted to Europe and then the Americas.

MultiMedia Intelligence also
learned:

  • Realtone
    ringtones are gently displacing polyphonic ringtones in all regional
    markets. Polyphonic ringtones are becoming antiquated as the cell phone
    evolves in to a fully realized multimedia device.
  • Retail
    mobile music is nearly a mature market in South
    Korea
    , but an expanding market in Japan.
    By 2012, the mobile music market in Japan,
    for example, will be over 7 times the size of the mobile music market in South
    Korea
    .
  • Streaming
    mobile music is growing; however, it does not yet have the market scale
    compared to other mobile music categories. Mobile games and adult content
    are continuing to grow, but at gradually slowing rates.

"Ringback tones are
quickly becoming the 'Golden Child' of the mobile music market, due to a
winning combination of consumer popularity, and minimal impact from DRM or
piracy," according to Frank Dickson,
Chief Research Officer with MultiMedia Intelligence. "The current leading
mobile premium content category of realtones is already facing challenges
Consumers increasingly are able to create their own ringtones. The price
disparity compared to a full track download is also a growing factor. "

The research report, "Dough-Ra-Mi: A Look at Mobile Music,
Ringtones, Ringbacks, Games, Graphics & Adult Content
,"
examines and forecasts key market verticals in the mobile handset market.