snapshot 10/26/07

Virgin Mobile USA Opens User-Generated Music Marketplace
Phones are social devices, and that has carriers and manufacturers pushing the limits on interactivity. Just recently, Virgin Mobile USA unveiled a user-generated concept called Studio V, an image and music-oriented play. The multi-platform offering encourages participants to create their own ringtones and wallpapers, then sell them to other subscribers. The networked marketplace is designed to generate revenues for Virgin, while also kicking a percentage back to the creators.

Studio V prices wallpapers at $1.99 each, and ringtones at $2.50 each. Ringtones and images are created online, then uploaded into the mobile realm. When another subscriber purchases original content, the creator receives a 10-cent account credit. Consumers must also pay fees to transfer their own content to their handhelds. "Studio V provides the youth market, already consuming ringtones and wallpapers, with the tools to be able to express themselves and download mobile content that is unique to them," said Josh Barkin, president and chief executive of 9 Track Mind, a technology partner in the effort.


Struggling CD Squeezes Sony BMG Bottom Line
A sliding CD squeezed both revenues and earnings during the recent quarter at Sony BMG Music Entertainment. The label, a joint venture between Bertelsmann and Sony Corp., reported an earnings deficit of $8 million on sales of $851 million for the latest three-month period. Alongside a shrinking physical market, a thinner release roster was also blamed for the downturn.

Despite the rockiness, some positive spots emerged. The earnings dip is far less severe than losses of $39 million from the comparable quarter last year. And measured pre-tax, the label actually pulled profits of $8 million. Still, top-line sales dropped ten percent from $948 million previously.


AOL Plans Lyrics Offering, Taps Gracenote
AOL is now planning a lyrics offering, according to information shared Thursday by company executives. The content enhancement will involve Gracenote, a leading provider of music metadata and information. The lyrical content will be threaded throughout a number of different sections, including AOL Music.