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Ringback tones revenue to overtake ringtones revenue in 2010
Posted: 04-Mar-2008 [Source: IDC]

[IDC predicts ringback tones will overtake ringtones in 2010 becoming the single largest revenue source for mobile entertainment.]

Framingham, MA -- IDC forecasts the number of worldwide wireless subscribers and customers to grow by a little more than a billion over the next four years, generating $800 billion in global wireless service revenue by 2011. IDC expects mobile entertainment will account for 5.1% of this total revenue and 23% of all mobile data revenue. The vast majority of this mobile entertainment revenue will be derived from ringtones, ringback tones, and mobile television and video services.

Although there are significant regional differences, worldwide revenue and subscriber and customer totals are poised to increase at least 25% annually between 2006 and 2011. According to IDC, ringback tones will overtake ringtones in 2010 and become the single largest revenue source for mobile entertainment due to a variety of inherent advantages.

"The fact that ringback tones is expected to actually increase its share several percentage points through the forecast period is a testament to the inherent strengths of the service," says Lewis Ward, research manager of IDC's Wireless Communications Research. "One could argue that because ringback tones is the most closely tied into the network and cannibalization from third parties is virtually impossible, it has some additional advantages over other mobile entertainment services and content types for MNOs."

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