Live from RoadShow Hollywood: Ringtones Dip, Mobile Music Soars

Posted on by Chief Marketer Staff

Mobile music is on pace to break new ground in the music industry and is giving marketers a variety of options to reach younger consumers. The trend was one of several highlighted yesterday at RoadShow Hollywood’s Music Day.

While ringtones are still a hot commodity, full track mobile downloads is where the money is heading, Tamara Conniff, executive editor/associate publisher for Billboard, told attendees. Mobile music revenue from full track downloads is projected to hit $14 billion by 2011, according to Forrester Research. By 2010, mobile downloads are expected to account for 20% of the business, Conniff said.

“It’s not just CDs anymore,” Conniff said.

Ringtones, themselves, which now make up 81% of mobile music sales, are expected to drop, making up only 51% of the industry by 2011, per IDC. While the outlook appears bleak for the ringtones business, the industry is ripe for brands wanting to capture a piece of the mobile space itself. For marketers, mobile music gives brands a “lifestyle association” to tout their products, she said.

The sale of music via the Internet and mobile phones generated $1.1 billion for record companies in 2005, up from $380 million in 2004. “There is a lot of opportunity on the mobile front,” Conniff said.

Outside of mobile music, the touring market is exploding. Concert tours bring in about $3 billion each year in North American ticket sales. For example, the band Counting Crows typically has a weak performance on CD sales, but is raking in the money via tours, Conniff said. “It is about branding,” she added. With a tour, “you have a captive audience.”

For marketers looking to attach themselves to an artist, Conniff told attendees to partner with a musician early, and not to be afraid to “roll the dice on which you think will be great.”

RoadShow Hollywood is a four-day event on entertainment marketing featuring sessions on music, gaming, television and the film industry. The event runs through Thursday.

For more coverage on entertainment marketing

More

Related Posts

Chief Marketer Videos

by Chief Marketer Staff

In our latest Marketers on Fire LinkedIn Live, Anywhere Real Estate CMO Esther-Mireya Tejeda discusses consumer targeting strategies, the evolution of the CMO role and advice for aspiring C-suite marketers.

	
        

Call for entries now open

Pro
Awards 2023

Click here to view the 2023 Winners
	
        

2023 LIST ANNOUNCED

CM 200

 

Click here to view the 2023 winners!