May 26, 2004

Ringtones business hosing itself

Ringtones, as noticed a few times before, are suprisingly big business for the music labels. But maybe not for long.

As a result, prices for "sample" ringtones across Western Europe are on the rise, ranging from the equivalent of $1.38 from Web-based reseller F1-Live in Belgium to $7.35 from T-Mobile in Britain, Informa said.

In contrast, song downloads tend to follow Apple Computer Inc. iTunes straightforward pricing model of 99 cents per track. In Europe, downloads are priced in the range of 0.99 euros ($1.20) or 99 pence ($1.79).

Lemme see. I can buy the song legally for about a buck, or I can download a small portion of the same song for several bucks. The sheer brilliance of such a Hobson's choice is staggering.

Thanks to Brad for the tip.

Posted by Casper at May 26, 2004 12:10 AM
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