Ringtones Get Anti-Competitive in Japan
With ringtones big business in Japan, several big labels are now being ordered to stop their anti-competitive licensing practices. A recent probe by Japanese Fair Trade Commission reported that the top five Japanese labels are monopolizing the distribution of rights for master ringtones, the high-end tones that require master recording licenses. The FTC took special interest in a joint venture known as Label Mobile, which functions as a mobile content provider to various carriers. Label Mobile has been commanding a very high percentage of the ringtone market, while other providers have mostly been locked out of the licensing discussions. The labels in question include Sony Music Entertainment, Avex, Toshiba-EMI, Universal Music K.K. and Victor Entertainment.
Now, those labels have been ordered to stop their collusive practices. The Japanese FTC recently raided various label offices in an attempt to uncover evidence of wrongdoing, with more enforcement action expected. Already, the Japanese master ringtone market is estimated to be worth $113 million annually, with the high-end tones rivaling the entire US ringtone market. That has more wanting a piece of the pie, with over-the-air, full song downloads potentially receiving additional scrutiny.
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