Opinionated comments on mobile phone industry news
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All entries are written by Anders Borg, CEO and Consultant of Abiro, that has a long experience in strategic planning, developing embedded and Java software, usability aspects, and the mobile phone industry in general. You can also read the latest Mobile News entries on your phone via wap.abiro.com, and we provide many News Feeds from popular news services. For advertising and contribution queries, please use the feedback form. News feed (local) FeedBurner Feed
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Thursday, April 13, 2006
Ringtones destined to save the music industry
There's obviously no law saying that the music industry should be exempt from revenue pressure. Both executives and artists are paid way more than they should anyway, but if status quo is what people want, then ringtones is a good cure for the loss in CD sales.
We all know that physical delivery of music and other multimedia will go away in the longer term. Digital distribution is simply much more cost efficient (we are talking magnitudes more efficient, not "percentages", even when the music is of CD quality), which hopefully also will show in the consumer price.
What's ironical is that even though digital distribution is so incredibly cheap, the audio quality is so crappy. Hence, by paying almost the same for an album online you provide much more margin to the music company for lower-grade goods. Anyone understands the logic in that? The cost for making the album is of course the same, so at least online stores should give knowledgeable customers the possibility to download music in CD or DVD quality. I'm sure music representatives complain that the delivery infrastructure is expensive etc etc, but it's simply not. Consider that digital distribution just requires setting up a bunch of hefty servers and compare that with delivering physical media across the world to thousands of shops...
Ringtones are big business for the music industry - Apr. 12, 2006
We all know that physical delivery of music and other multimedia will go away in the longer term. Digital distribution is simply much more cost efficient (we are talking magnitudes more efficient, not "percentages", even when the music is of CD quality), which hopefully also will show in the consumer price.
What's ironical is that even though digital distribution is so incredibly cheap, the audio quality is so crappy. Hence, by paying almost the same for an album online you provide much more margin to the music company for lower-grade goods. Anyone understands the logic in that? The cost for making the album is of course the same, so at least online stores should give knowledgeable customers the possibility to download music in CD or DVD quality. I'm sure music representatives complain that the delivery infrastructure is expensive etc etc, but it's simply not. Consider that digital distribution just requires setting up a bunch of hefty servers and compare that with delivering physical media across the world to thousands of shops...
Ringtones are big business for the music industry - Apr. 12, 2006
