Ringback rebuttal

Last month I wrote an Editor's Corner [1] expressing some skepticism about the popularity of ringback tones. Unlike ringtones, which I hear all the time, I can't think of one instance where I have called someone (outside the wireless industry) and heard a ringback tone. I realize I'm not in the target demographic group but I thought that by now ringbacks would have migrated beyond the young adult and teen market.

I received lots of reader feedback on that column. Some readers agreed with me but many more chastised me for my cynical viewpoint. These readers pointed out that the M:Metrics figure I quoted (8.4 million ringback tone subscribers at the end of March 2007, up from 2.3 million at the end of December 2005) indicated some pretty strong growth. 

And here is more evidence of the escalating ringback demand. mDisney, the mobile content publisher arm of Walt Disney Internet Group, says it has steadily increased its ringback tone portfolio to meet consumer demand. In fact, initially ringback tones made up about 11 percent of the company's mastertone offering; as of May, mDisney reports ringbacks account for about 62 percent of the firm's mastertone portfolio.

But mDisney isn't the only firm bullish on ringbacks. NMS Communications, which provides a ringback solution called MyCaller, says it expects RBTs to continue to experience strong growth. The firm, which has more than 25 operator customers, says during 2006, MyCaller Ringback subscriber penetration more than tripled and is on track to triple again in 2007. 

Just as ringback tones are proliferating, enterprising companies such as Vringo are coming up with new, advanced iterations of the ringtone. Vringo, which just announced a trial licensing deal with Universal Music Group (see story below), offers Vringos, a service allowing subscribers to deliver personalized video ringtones to callers. According to Benjamin Levy, Vringo's vice president of marketing, Vringos allow subscribers to personalize their phone using rich media and be part of a social network. "We want you to project your personality onto a friend's phone," Levy says.

To download a Vringo, subscribers must have a phone that has a color screen and can handle video. In addition, they have to download an application to the handset. Currently the Vringo app works with Symbian 60 handsets and most Java devices.

Vringo doesn't have an operator partner at this time. But Levy says the firm can offer Vringos via the operator and through the off-portal channel. He expects Vringos to cost about the same as a ringtone, between $1 and $4 per download. Some may be available through a monthly subscription fee.

I don't know if Vringos will be the next big trend in mobile phone personalization. But I do believe that if Vringo wants to follow the same growth curve enjoyed by ringtones and now ringback tones, the firm needs to secure an operator deal. - Sue [2]

P.S. Be sure to check out FierceMobileContent's new Web site: www.fiercemobilecontent.com [3]. We've improved the site's navigation, changed the layout and upgraded the search functionality. I hope you enjoy the changes.