Are Ringtones a Bursting Bubble?

A few months ago, the phenomenal success of certain cell phone ringtones took many by surprise. Now, it appears, much of that may have constituted a bubble that is now bursting.

Scams, the risk of viruses, and changing consumer tastes are taking a toll on the nascent industry, which currently represents between 6% and 10% of the entire music industry. Ringtones also largely appeal to young people, who are often not as wary of fraudulent or malicious activities as their elders. But even with kids, a growing trend is the swapping of "trutones," or original ringtones, as opposed to versions of popular songs.

Fraudulent activities surrounding ringtones have led for international calls to regulate the ringtone industry... adding further to distributors' woes.

Source: Forbes