Real, 2ergo Acquire Ringtone Providers

By Scott M. Fulton, III | Published September 13, 2006, 3:52 PM

In the 19th century, the most revered pieces of music often featured four movements that collectively lasted as long as over two hours; in the 20th century, popular music tracks averaged about three-and-a-half minutes.

For the 21st century, it would seem, the excitement surrounds tracks that last ten seconds or less, as RealNetworks' acquisition of ringtone provider WiderThan yesterday, and British telecom services firm 2ergo's acquisition today of US-based Proteus, brings to four the number of major linkups in the ringtone space just this week.

WiderThan's target market thus far has been its native South Korea, but its plan has been to expand its global presence, with a market strategy that appears more family-friendly than some of its counterparts. In the United States, WiderThan has some "on-deck" deals already worked out with carriers, including one with Verizon Wireless' VCAST service, although that deal is non-exclusive.

RealNetworks was quick to boast yesterday that WiderThan's revenues for the first half of this year grew 39 percent over the year-ago period to $61.9 million. By comparison, Jamba reportedly earned $74 million for then-parent VeriSign in that company's fiscal second quarter alone, although that number is way down from previous earnings, and Jamba's Jamster service is supposed to be the better performer.

In Q4 2005, VeriSign disappointed the street by reporting Jamba revenues of $94 million, when analysts had expected them to top $100 million.

Meanwhile, you may want to get a piece of paper to make sense of this next part:

2ergo, which owns a portfolio of companies in the mobile telecom space, including US-based ringtone provider Zobmob, purchased US-based Proteus. On paper, Proteus is another telecom holdings company, but whose major deals of late have been with media companies for the rights to produce ringtones based on popular franchises. For instance, ringtones using the voice of South American soccer stars, is all the rage on that continent.

Proteus is owned by the US division of Norweigian telecom carrier Telitas, which lately has found itself in the ringtone business. Telitas is itself owned by a Japanese telecom services company called For-Side, which in 2004 acquired ringtone provider Zingy from an American entrepreneur. In August 2005, For-Side merged Zingy with another US ringtone provider, Vindigo.

So did 2ergo acquire Proteus' ringtone portals along with its ringtone contracts? It doesn't appear so, as Zingy was not mentioned in 2ergo's press release today. Instead, 2ergo may have effectively unplugged Proteus from Zingy in order to plug it into Zobmob (as strange as that sentence sounds).

All this polysyllabic news comes as mobile telecom analyst Telephia projects that the total worldwide audience for mobile content of all types -- ringtones included -- grew at an annual rate of 45 percent in the second quarter of this year.

Comments

View comments by with a score of at least

Haha, I liked the intro to that article.
Kids these days; no powers of concenra.... oh look, a pigeon!

Score: 0

|

Why?Algogo.com-One-stop Electronics store

Score: 0

|

Microsoft's Ray Ozzie: 'Nobody's going to be 100% open'

The mobile apps ecosystems of the world may converge over time, led by apps being ported over across platforms, according to the Chief Software Architect.

Will Firefox beat IE9 to Direct2D rendering?

Just days after Microsoft executives gave conference attendees a peek at a new rendering technology, a Mozilla contributor revealed he's working on the same thing.

Where there's smoke: Apple warranty stance raises troubling questions

Carmi Levy | Wide Angle Zoom: Smoking can be dangerous not only for your lungs, it appears, but for your Apple hardware warranty.

The fallacy of Facebook privacy

Carmi Levy | Wide Angle Zoom: If an insurance company learns something interesting about its client through the Internet, is that snooping?

Microsoft 'worked with Apple' for Silverlight on iPhone, says Goldfarb

By not making such a big deal out of trying to stream video to the iPhone, Microsoft got a big deal out of it, revealed the Silverlight product manager.

Clicker.com cuts through the Web video chaos

In a world where homemade video and Hollywood movies travel the same pipeline, it's good to have a real search engine to cut through the clutter.

A case study in improving software: What Office 2010 can learn from Notion 3

A music composition product gambles with a complete overhaul, in an effort to make headway against two well-known competitors in a tough market.

Kindle 2 update adds battery life, native PDF reader

Amazon has pushed out an update to the Kindle 2 e-reader that lengthens battery life and adds a native PDF viewer.

Safari on iPhone gets competition from a $1 browser app

Apple likes to say it gives iPhone users a full browsing experience, but a new competitor tries to incorporate more desktop browser features.

Action Replay maker sues Microsoft for Xbox 360 'predatory technological barriers'

Third-party video game accessory maker Datel has filed an antitrust lawsuit against Microsoft over the Xbox 360's recent Dashboard update.