Some analysts consider that music sale through mobile phones will sharply grow in the nearest months. By estimations of analytical company A. T. Kearney, from 20 to 30 % of all sales of music by 2010 under condition of the attractive prices it can be carried out through mobile phones.
On path of formation of the new ringtone market there was already variety of problems. One of them is the complexity of the conclusion of contracts because it is necessary to co-ordinate interests of the numerous sides. So, ringtones are musical hits more often. However musicians are linked by contracts as to the companies which own the rights of music and words (musical publishers) and with the companies owning the rights to written fulfillment.
Sometimes authors of one song are some persons. To agree with all about song transformation into a ringtone is a very troublesome issue. For example, hit “Yeah!” of the hip-hoper Usher some months were not accessible in kind of a ringtones because of company T-Mobile USA Inc disagreements. With the agent representing one of seven authors of a hit. Only in the middle of August when the song has already left charts, the company has conceded, and “Yeah!” and has entered into the market. At sales of 40 thousand copies in a week this ringtone instantly became the best seller, however because of semi-annual delay all sides participating in negotiations have lost millions dollars of not received income.
Other serious problem is the piracy. Having lost the control how consumers download and listen to music on the Internet, the sound recording companies try to be insured from this error in a case with ringtones. But to make it is difficult. Just as sound recording business is threatened with the Internet-file exchange, legal business is threatened with “grey” operators which give cheap versions of hits without licenses.
By word analytics of research company Forrester Research Kirsten of Schmidt, from hundreds sites from which users download ringtones for the mobile phones, very few enter into agreements with the sound recording companies, paying them money for music usage. The right to download within a year unlimited quantity of ringtones for “the grey” operator costs $9,99, for example, and, on the contrary, for Sprint the prices for everyone license ringtone vary in limits from $0,99 to $1,99. By estimations of the British company Envisional which are engaged in Internet monitoring, losses of the world musical industry from illegal downloading from web sites can reach to $1 million a day.
One of the main methods of struggle against a piracy in sphere of ringtones are joint agreements between the companies making mobile phones, operators of cellular communication and the sound recording companies. So, last year company Motorola has signed the agreement on $70 million about three-year partnership with MTV in development and distribution of ringtone sphere.
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