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Labels look to ringtones for better singles offer. (News).

Music Week

| May 03, 2003 | COPYRIGHT 2003 UBM Information Ltd. This material is published under license from the publisher through the Gale Group, Farmington Hills, Michigan.  All inquiries regarding rights should be directed to the Gale Group. (Hide copyright information)Copyright

Record companies are increasingly turning to "official" ringtones as alternative revenue streams as they look to make up the shortfall from the declining singles market.

While the buoyant ringtones business has, to date, been largely run by third-party telecom companies advertising in the national press, labels are discovering a substantial demand for "official" ringtones. These are often supplied and approved by the artist themselves and guarantee quality at a fair price.

"There have been a few examples where singles tagged with ringtone promotions have earned more for a label than the single itself," says Mercury Records new media manager Leo Windham. It is understood that ringtones generated from a recent Ja Rule single earned Mercury around 3,000 [pounds sterling] in extra revenue.

Mercury is also currently offering fans of David Sneddon the opportunity to pay 3 [pounds sterling] to receive two ringtones of tracks from his debut album Seven Years--Ten Weeks, which is released today (Monday). The trend has reached the compilations market, with Demon's current Love: The Essential Al Green album offering several of the tracks featured as ringtones.

Crucially, in addition to the ringtones, fans can also ...

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