THE DECLINE OF RINGTONES

The research firm IBISWorld new study indicates that the music ringtone market is continuing its steady decline. IBISWorld forecasts that revenue will decline for the second consecutive year down 15% to $750 million from its $880 million peak in 2007.

The reason for the decline of ringtones is due to the growing demand of downloads, which is worth an estimated $1.94 billion. In the inception of ringtones they were purchased via text and cost consumers up to $5 a song. Whereas, with downloads a song can be purchased for less than one dollar.

Senior Analyst of IBISWorld indicated that the ringtone market has reached its decline stage and its life cycle is expected to last approximately 15 years. He further stated that ringtones boomed overnight and its decline is happening just as fast as it entered.