So you want to make money from ring tones

USA – With all this talk about The Marley faily threatening to sue over reggae legend Bob Marley’s songs being offered as ringtones on the Verizon Wireless via an agreement with Universal Music Group, we thought we’d find out just how does one make money from the sale of ringtones in the USA. Here’s the breakdown: The example shows how the sale of 50 Cent “Candy Shop” master tone might break down, based on a retail price of US$2.50:-A carrier like Verizon typically receives about $1.12,or 45 percent.-The parent label receives about $1,or 40 percent of the total,and out of that pays the artist a royalty. At an estimated 18 percent royalty,50 Cent would receive about 29 cents.-The publishers collectively receive about 25 cents,or 10 percent. From that share, the writers are each estimated to receive between 9 cents and 11 cents.-Performance societies like the American Society of Composers,Authors and Publishers,would receive an estimated 3.5 percent of the total,or roughly 9 cents.

The ringtone industry up make up 12% of total music sales by 2008

The ringtone industry, currently valued at about US$3 billion world-wide, is expected to make up 12% of total music sales by 2008, according to a recent study by Baskerville/Informa Media, reports the WallStreetJournal“However, the value of the market “will start to level out as prices come down and the effects of home copying kick in,” said Steve Mayall, an analyst with the U.K. research group.As the sector grows, the music industry will likely need to expand its fight against online piracy to include Web sites that offer unauthorized ringtones, the study said.”Source: moconews