China Electronics Wholesaler

BMI says ringtone sales are falling

Thu Mar 27, 7:26 PM ET

LOS ANGELES - Broadcast Music Inc. is projecting U.S. sales of mobile phone ringtones will fall in 2008 compared to last year. ADVERTISEMENT

The company, which licenses performing rights to musical works, said Thursday it expects ringtone sales will total about $510 million this year, down 7 percent from 2007.

It says demand has waned for the audio clips used to customize cell phone rings in part because new handsets that play music let customers use audio from their own collections instead.

The company expects U.S. sales of another type of mobile music product — ringback tones — to grow 50 percent this year to more than $210 million.

Callers hear ringback tones while calling someone.