6 MusicWeek 17.01.14 NEWS INDUSTRY URGED TO TAP INTO “PHENOMENAL” PROMOTIONAL POWER OF RINGBACK TONES
Labels are ‘missing out on billions of hours of airplay’
DIGITAL n BY TOM PAKINKIS
L
abels and publishers are letting billions of hours of airplay go to waste by not
fully embracing mobile ringback tones as a promotion channel. Not to be confused with a
phone’s ring tone, the ringback tone is what a caller hears before the receiver picks up at the other end – often a classic ‘ring ring’ sound. What few people realise is
that this tone can be changed by the owner of a phone number via the mobile operator to play a different sound, a message or a music track. Tech company RealNetworks
launched the first global ringback tone service in 2002 and today boasts more than 33 million active subscribers. In November this year, it launched an app called ‘Listen’, which aims to “reinvigorate” the service for smartphone users, allowing them to easily set up and manage their ringback tone. The company’s head of
global business development for
$4 billion today.” However, Jackson added that
the potential of ringback tones as a promotional tool is even greater: “On any day on this planet there are about 12 billion inbound mobile calls, the typical hold time of the ‘ring ring’ sound is about 10 seconds. If you multiply 10 seconds by 12 billion, you’ve got 2 billion minutes of one-to-one air time. “I see that as promo time. If
“Globally ringback tones are worth $4 billion today, but I see it as promo time. Think of it as a radio station - you’ve got 2 billion minutes across the planet [daily]” RICHARD JACKSON, REALNETWORKS
ringbacktones Richard Jackson (pictured) told Music Week that the potential of this sector for labels and publishers as a revenue driver is significant. “For every 100,000 subscribers
that are on the service, typically the mobile operator is generating
around £175,000 in gross revenue a month based on the current service. As people buy pieces of content and add to their library, they’re paying a license charge and that’s going back to the labels and PRS,” he explained. “Globally ringback tones are worth about
a record label wants to promote a new band or a new release for an existing band, you’ve got 2 billion minutes across the planet. You have a phenomenal amount of time where you can get music played and promoted so that people can discover and share.” The Listen app charges a
monthly subscription of £2.49 for the ringback tone service and individual tracks can be purchased by users for the equivalent of £1 in credits. RealNetworks is currently in discussions with labels for the service. Music Week understands that the key deals were expected to be done by the end of 2013.
“Record labels are aware of
the service, although I think they probably feel that it could do with some reinvigoration, that it’s gotten a bit stale over the last ten years and that the awareness of the product hasn’t been what it could be,” said Jackson. “The revenues that they get from it are ok - they could be better. “But I’m saying that, while
the revenues will improve as more people become aware of it, if we can get the record labels to embrace this service by pushing their content and using it as a promotional channel to get more airtime for the bands and music that they want, then all of a sudden more people will buy the music itself. “The main thing we want to
say to the industry is: here’s a service that we can generate revenue from today by selling content, but actually just look at the volume of inventory here and think of it as a radio station, albeit when you ring me, I’m playing something I want you to hear. That’s a one-to-one play. If we want to be viral and explore music, what better way to do it?”
RSD forms link with XFM 3DD mourns Matthews
Record Store Day will return on Easter Saturday - April 19 - and has signed XFM as its media partner for this year. Record Store Day 2014 will see independent
record shops the length and breadth of the UK and Ireland selling special limited edition records, released exclusively for the event. XFM will broadcast the official launch event
for 2014. Breaking away from the usual format of one launch, there will be two launches held simultaneously in record shops in both Manchester and London on Thursday, March 20. All of the releases for April will be announced at the launches, alongside some special in-store performances from artists releasing products for the event. Record Store Day UK co-ordinator Spencer
Hickman, said “We’re really excited about our partnership with XFM. They understand
Record Store Day and have been avid supporters of independent record shops, and we’re so pleased to have them involved.” Mike Walsh, head
of music at XFM (pictured), said: “As long time enthusiasts and supporters of Record Store Day we are honoured to have XFM be in partnership with this vital and ever-growing initiative. “Everyone at XFM has always been a
huge fan of vinyl shopping and recognises the importance of celebrating the invaluable service that independent record retailers offer to both fan and artist.” Further details about the launch event will be announced at the end of February.
Andy Matthews, respected camera director of TV music shows, died suddenly on Monday (January 13) of cancer, aged 57. His long-running employer,
The 3DD Group, paid tribute to Matthews in a statement to Music Week, calling him “a gentleman and music TV director/vision mixer supreme”. Between 2005 and 2010,
Matthews was the director of the first six seasons of Channel 4’s Album Chart Show/London Live at the Camden venue Koko. “Andy will be sadly missed by
us all,” said 3DD group CEO Dominic Saville. “He loved the artists: whether Lilly Allen or
Lady Gaga in the snow, Morrissey and Paul Weller, Stereophonics and Keane or Sugababes and Girls Aloud, he loved them all and they loved him. “He was one of those rare
men who was creative, humorous, experienced, down to earth and close to everyone, with no airs or graces. “We had one final outing with
Mark Knopfler at the Hurlingham Club – a mad night enjoyed by all. Then he found his spiritual home, following Iron Maiden around the world and up in the air - so he went out on a high (literally - 30,000 feet high).”
www.musicweek.com
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