Everybody says the emerging ringtone business could resuscitate the music industry. If labels are failing to sell
obsolete CDs, and 99-cent online tracks aren't moving too well either, how about peddling a 15-second song snippet for
three dollars? The consumer appeal is undeniable—having your cell phone ring with your favorite song is a compelling
lifestyle identifier. Even rampant P2P downloaders are likely to be attracted to ringtone purchases.
Funny thing is, creating your own ringtones would seem to be a perfect example of fair use, protected by U.S.
copyright law. The samples are short, they are for personal use only, and they are created just once for a single
phone. Consumers don't need no steenkin' record label to collect a fee for this particular use of music. And now,
Xingtone has put the power in people's hands by developing a ringtone-ripping
program that extracts the sample from a CD and puts it into the phone.
``It's problematic, because it has the potential to eviscerate the business model early in its development,'' said Ted Cohen, EMI Music's senior vice president of digital development and distribution.
Yes, Ted, but isn't the real problem that very business model you're afraid of losing? The industry is facing the same dilemma as always: Technology has removed an intermediary function of the labels. Just as the labels are not needed anymore to manufacture plastic discs, so are they not needed to create song excerpts and feed them into our phones. The ringtone situation is even more flagrant, because creating short excerpts for personal use is absolutely legal, so if the labels try to quash Xingtone they will be attempting to quash a clear consumer right.
Same problem, same solution. The labels own the content and essentially own the artists, so they must use that ownership to create a better product than consumers can on their own. Many consumers will pay for ringtones instead of using Xingtone, simply because it's easier. For the DIY'ers, labels should develop unique ringtone product that is not found on CD. Distributed through the phone companies, that unique product could be relatively immune to ripping and file-sharing.
What sort of unique ringtone would you be willing to pay for?













1. I downloaded and bought Xingtones about three weeks ago. It is quite easy to use yet because of phone technologies you are limited to 30 sec song samples as the program will not let you send anything over 30 secs. The memory in your phone will also dictate what you can have and what you cant. The phone we used, the Motorola v600 has 5mb so it could store about twenty 30 second song clips.
As phone technology gets better this Ringtone wave will hit the US with a vengeance.
Posted at 5:58AM on Dec 19th 2005 by Casey Mack