Napster Jumps Into Ringtone Market

Customers of T-Mobile and Cingular wireless will now have access to new ring tones, wallpapers and graphics thanks to a deal between Napster and Dwango Wireless that was made public on Monday. The companies expect the service to be available through most wireless carriers by the end of the summer, with services also planned for Rogers and Fido Wireless in Canada.

"Napster is dedicated to giving consumers the widest set of options to access the music they love in a way that fits their lifestyle," said Chris Gorog, chairman and CEO of Napster. "We are excited to work with Dwango to make Napstertones a reality and give millions of wireless subscribers a simple way to get a taste of the Napster experience."

The new ring tones, called "Napstertones," will be available at a cost of $1.99 to $2.99 USD and sold through napstertones.com. Users of Napster's music service will also be able to purchase the tones directly through the application.

Users who purchase a ringtone within the next 30 days will also be given a credit towards a free song download from the Napster music library.

Ring tones have become a cash cow for wireless companies. Revenues jumped from $91 million in 2003 to $217 million in 2004. Analyst firm Jupiter Research expects revenue to reach $724 million within the next four years, as phones with the capability to download high-quality ring tones achieve higher market penetration.