WSJ Reports: The Ringtone Riddle, and Radio Trying To Survive In A New-Media World

Wall Street Journal

Today's WALL STREET JOURNAL carries an article called "The Ringtone Riddle" (subcription required) that suggests that labels are having regrets over pricing song downloads at just 99-cents through APPLE's iTUNES, when SPRINT's music stores charging $2.49 per song, and the same pricing for a ringtone, which is a $500 million business, domestically.

But do they have anything to do with each other? YANKEE GROUP's MICHAEL GOODMAN says "ringtones are about personalization. Music downloads are about entertainment." He indicated that the labels are stuck with 99 cents as the standard for song download. "There is no market above 99 cents." He cites a YANKEE GROUP study that found consumer interest in buying a song download dropped 60% if the price rose from 99 cents to just $1.19, and decreasing the price to 79 cents had a negligible effect on interest.

Meanwhile, the WSJ has another noteworthy report: "Radio Trying To Survive In A New-Media World" (subcription required) that examines the changing face of the medium in terms of formats, and what it's doing to maintain listenership. The upbeat, but honest article, indicates, radio is responding by embracing new technologies, and formats.

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