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Ringtones Are a Huge Business

InformationWeek reports that revenues from mobile downloads have soared to $4.1 billion and ringtones are a big part of the picture.
Mobile phone users are downloading data at increasing rates with Verizon Wireless attracting the highest level of interest, according to a report released Tuesday by IDC.

In all, the 230 million wireless subscribers in the United States bought a total of $4.1 billion in data services in the third quarter of 2006.

"Our research found that at $7.27 spent per-customer on data services in 3Q06, Verizon Wireless became the new market leader among the national operators, eclipsing Sprint Nextel, the long-time leader in this metric at $7.15," said IDC's Julien Blin. The two leading firms employ CDMA technology.

Blin, who is research analyst for IDC's Wireless and Mobile Communications program, said Verizon leads in total wireless data revenue, data percentage of average revenue per user (ARPU), and data spending. However, Sprint and other national carriers pace the market in some selected service offerings.
Geek.com reports that the IDC study found that "20% of subscribers purchase at least one ringtone every quarter." You can find a list of ringtone retailers here. Billboard Magazine maintains a list of the bestselling ringtones called Hot Ringtones.

Posted on January 23, 2007





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