Idolator
For years, the ringtone was assumed to be the growth sector in the music biz, especially once CD sales started tanking and before digital downloads started pulling their own weight. But recently the rumors of the format's demise, rumors which began a few years ago, have started to get louder. And there might be another death knell sounded in this article on the closure of ringtone distributor Zingy, as it "chang[es] its name to a brand it bought and killed two years ago," Vindigo:
As a result of this reorg, the company is closing down its "personalization services" division, meaning it will do away with its ringtones, wallpapers and other content apps. What it will focus on is slightly confusing, from the statement: "Our new strategic direction leverages our strengths as market leader in network-aware applications and refocuses us on the high growth opportunities in mobile entertainment, which today are cross platform applications, mobile advertising, and casual games." This says it more clearly: the company will develop more mobile applications similar to Vindigo's MapQuest Mobile, MovieGoer, and Vindigo City Guide applications, in effect going back to Vindigo's original charter.
Which may just be one unique instance of a company being given a new direction by its parent corporation—"Japanese mobile content company For-Side, which bought them three years ago"—after it has become unprofitable. Or it could be a sign of the times, the conquering digital hero of a few years ago forced into early retirement as new-school applications supplant old-school ringtones.
Zingy Changes Names To Vindigo; Closes Ringtone Division [mocoNews.net]
Comments
this is awesome. i want to email this to one of my old bosses who laughed at me when i told him that ringtones were a passing fad.
so, they've stopped selling ringtones to become a sub-par google? sell yr stocks.
Wait (sorry, getting off-topic for a minute): is Vindigo dead? As in the location-specific Palm app? Been using that shit for, like, six-seven years.
@dennisobell: Apparently it is! R.I.P., outdated Clubplanet listings.
@brainchild: I don't think ringtones are "a passing fad", but I've always thought that the business models in this space were way off-base. $10/mo. subscriptions and $4/ringtone charges are ridiculous. [N.B. I bought one one-off ringtone 6+ years ago, so I may be somewhat unfamiliar with this market. Be nice to me.] I've always thought this space would eventually rightsize itself -- like the overall music biz is being forced to do -- with players dropping out as the margins decreased, and I think the news reported here is just evidence of that happening.
if ringtones are dead, would someone please tell that to the Midwood High students i have to ride the Q train with?
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