toggle

AAPL Stock: 509.46 ( 0 )

Sony exec: digital music growth continuing

updated 11:40 am EDT, Wed August 10, 2005

Digital music growth


Sony expects digital music to grow to as much as by 2008, according to Thomas Hesse, president of Sony BMG's Global Digital Business. Hesse delivered a keynote speech at the Music 2.0 conference in Foster City, CA. This is a "fundamental transformation," Hesse said. Not only are music fans buying songs and albums online, they are also embracing new music formats. Ringtones offer the biggest example, with artist Cassidy selling over one million jingles prior to his album reaching store shelves. Hesse said he also favors a transformation in the ways that labels do business, including a simplification of artist royalties based on total revenue rather than units sold.


by MacNN Staff

print
email
(8)

TAGS :

 industry, digital music/video

Related Articles

Recent Articles

toggle

Comments

  1. throatmonster

    Fresh-Faced Recruit

    Joined: Aug 2001

    0
    08/10, 01:38pm | report spam | Reply |

    20% by 2008? sounds low..

    The revolution is well underway. Does this count all the people who still buy CD's but rip them for their players?

  1. chabig

    Addicted to MacNN

    Joined: Jun 1999

    0
    08/10, 02:08pm | report spam | Reply |

    Why ringtones

    I've never understood why people are willing to pay money for a ringtone.

  1. machappy

    Forum Regular

    Joined: Jan 2000

    0
    08/10, 02:25pm | report spam | Reply |

    re:Why ringtones

    i was thinking the same thing. I remember seeing some sales figures a few months back in some article and it just floored me. im thinking it said something like a coupla billion dollar a year niche. anybody know?

  1. SomeToast

    Senior User

    Joined: Jan 1999

    0
    08/10, 03:32pm | report spam | Reply |

    Reason

    The only reason there's a market for ringtones is because the cell carriers, already exerting control over which phones can be used with which provider, take care to make sure the phones are locked down to prevent people from putting their own media on them.

    If you want to look like an idiot every time your cell phone rings, they're more than happy to sell you the means to do so, but god forbid you want to use a song you've already bought and paid for on there.

  1. testudo

    Fresh-Faced Recruit

    Joined: Aug 2001

    0
    08/10, 04:36pm | report spam | Reply |

    Re: Reason

    No, the reason is that the cell companies have somehow managed to market ringtones, like they've marketed text messaging, to actually convince people that its a cool idea. Esp. to the young'uns, whom don't usually have to pay for any of this stuff. (All I know for sure is that, if cell phones were around in "my day", and if somehow my parents gave me one - say to keep in touch in case of emergencies - I'd be in some sad state of affairs if I'd have "bought" a ring-tone, let alone racked up serious charges for incessant text messaging. But, then again, in my day, a "telephone" was two tin cans with a string tied between them. And we liked it!)

  1. bigpoppa206

    Fresh-Faced Recruit

    Joined: Jun 2003

    0
    08/10, 04:58pm | report spam | Reply |

    Hopefully...

    Sony will get out of the music business and keep the ringtone business.

  1. budster101

    Baninated

    Joined: Dec 2004

    0
    08/10, 05:44pm | report spam | Reply |

    Funny

    They are boasting 20 percent by 2008...

    Apple has 70% now... and will increase their stronghold. I agree with bigpoppa206, Sony will remain in the 'ringtone' business.

    What a joke.

  1. theid

    Fresh-Faced Recruit

    Joined: Sep 2004

    0
    08/11, 01:57am | report spam | Reply |

    Re: Funny

    I think he meant that, overall, music downloads will be 20% of the music market in 2.5 years (the other 80% going to CD/tape/lp).

    I happen to disagree and think he is underestimating the coming wave of downloaders who have an iPod and suddenly 'discover' the iTunes Music Store. In another 2.5 years a lot can happen. If every iPod owner bought one song per week, just that would be a nice additional source of income for Apple, at their current iTMS profit margins. To see a good example of growth in the iTMS, check out the complete list of albums added in the last month. It would take an hour just to browse through the new songs each _week_.

Login Here

Not a member of the MacNN forums? Register now for free.

 
close
Photo
toggle

Network Headlines

toggle

Most Popular

10 Most Read

Recent Reviews

Logitech Cube

The world of mice could often be described charitably as stagnant: it's an endless sea of ergonomic shapes that assume you're sitting ...

NewerTech and Targus USB Hubs For Gifts

A useful holiday present to resolve an ongoing frustration is a multi-port hub. Whether as a stocking stuffer, Chanukah present, or an ...

X-Rite ColorMunki Photo

Color calibration is the art of tweaking your monitor so that the colors represented on screen better match real life and your printer ...

toggle

Most Commented

10 Most Discussed

 

Popular News