Ringtone Business

Posted: June 25, 2009 in Uncategorized

Ed’s Note: Hey guys! Hope you enjoyed Part 1 of Michael Philips’ entry. If you missed it, check out “I love your ringtone!”

You might also want to take a look at Release our ringtone royalties

REVENUE GENERATION FROM RINGTONES, RING BACK TONES AND FULL TRACK DOWNLOAD FOR THE NIGERIAN ARTISTE (Part 2)

Michael Philips
The mobile content market in Nigeria is, comparatively, in its formative years and mobile network operators and their partners, i.e. content providers, content aggregators, billing and payment service providers, are working hard to come to terms with the rapidly changing nature of how the market is being shaped and driven by end-users.

There are huge opportunities for the Nigerian artiste to derive maximum benefits from participating in this mobile content market but there many pitfalls to be negotiated, depending on the particular business model.

There are four key players in these business models:
1. Content Owners/Copy right owners
2. Content Aggregators
3. Content Providers
4. Mobile Network Operators

Every mobile network operator in Nigeria offering ringtones, ring back tones and full track songs uses these business models with just a little variation.

CONTENT OWNER/COPYRIGHT OWNERS
They are the owners of the intellectual property be it Music or Video .This can be the artiste as an individual running his own label, record label, musical collecting societies .

CONTENT PROVIDERS
A content provider gathers products such as ringtones, logos, animated images, ring back tones, Java games, videos and offers to the mobile network operator directly or through the operator’s content aggregator.

CONTENT AGGREGATORS
The content aggregators collects different mobile content from different content providers and delivers to the mobile network operator. The content aggregator provides tools for content moderation, mobile content delivery interface and reporting tools.

MOBILE NETWORK OPERATOR
The mobile network operators offers to its subscribers all the mobile content ranging from ringtones, ring back tones for a fee deductable from the subscribers air time.

Only one mobile network operator in Nigerian uses the content aggregator model. Others use the content provider model.

Issues arising at this moment in this note are:

1. Who collects the download fees?

2. What is the revenue share model?

3. What is the revenue share percentage?

4. Are there any download tracking tools for reconciliations?

5. How open are the reconciliations?

6. Whose responsibility is the payout check?

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