Tuesday, December 27, 2005

Ringtones Revenue Breakdown

MocoNews points to this article on the revenue break down for ringtones.

Highlights: based on a retail price of $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.
  • Performace societies like the American Society of Composers, Authors and Publishers, would receive an estimated 3.5 percent of the total, or roughly 9 cents.