August 17, 2002

Ring Tones By Such Artists As Naughty By Nature Are One Of Several Features That Consumers Can Access Wireless

phone entertainment, already a billion-dollar business in Europe and Asia, is starting to take off in the U.S.

"For the millions of teens and young adults that seek to discover and embrace new music, wireless represents a highly effective means of reaching them," TVT Records VP of business development and digital strategy Rob Weitzner says.

With more than 100 million wireless subscribers in America, there is a large potential market for artists and service providers to share. Among recent or upcoming programs centering on music programming for wireless are Virgin Mobile USA and MTV Networks' partnership, zingy.com's exclusive pre-release ring-tone download programs with a number of labels, the WFX (Wireless Fan Access) Britney Spears fan club with Best Buy and Samsung, and Diggit! Multimedia's fall launch of a turnkey mobile data interface featuring TLC. The bottom line for Zingy and other wireless entrepreneurs is paid downloads of everything but the promotional ring tones, with a typical $1 charge. MOBILE MUSIC TV

After a soft launch in June, Virgin Mobile USA had the official kickoff of its national cell-phone service July 24 (Billboard, Aug. 3). The service is bolstered by a strategic partnership with MTV Networks, which will bring content from MTV, VH1, and Nickelodeon to Virgin Mobile users.

"We're taking cell-phone content to a whole new level," Virgin Mobile CEO Dan Schulman says. "MTV Networks is home to some of the most-recognized youth and young adult brands in the U.S. and offers unparalleled reach to the under-30 market." MTV Networks chairman/CEO Tom Freston adds, "We are thrilled to partner with Virgin Mobile. Their complete focus on youth and young adults, coupled with their irreverent style, make them the perfect partner for us."

With various features coming online through year-end via virginmobileusa.com, the service will include hot ring-tone selections from selected recording artists; breaking news from the music industry; games from Nickelodeon, featuring characters like SpongeBob SquarePants; interactive content from MTV and VH1; interactive voting, for example, on favorite videos on MTV's Total Request Live; wake-up calls programmed into users' phones to ring at pre-appointed times; and the ability to purchase CDs and other merchandise.

Looking to capitalize on consumer interest in content and programming for wireless devices, Manhattan-based Zingy offers ring tones, graphics, voicemail greetings, live audio, and text messaging.

Zingy founder and CEO Fabrice Grinda says, "Since the launch of zingy.com last fall, we've had more than 1.4 million registered users [as of mid-July]."
The program started with free ring tones and logos for the pepsistuff.com promotion from last November through January, resulting in about 15,000 Spears ring-tone redemptions. For Loud Records, prior to last Dec. 11's release of Mobb Deep's Infamy, free ring tones of "Hey Luv (Anything)" and "The Learning (Burn)" were available, as were Wu-Tang Clan's "Uzi (Pinky Ring)," "Rules," and "Ya'll Been Warned" before the Dec. 18 debut of Iron Flag.

The 15,000-plus combined redemptions for the singles' ring tones impressed Loud chairman Steven Rifkind enough for him to join the Zingy board. "Technology is advancing so fast, and there's no better way to get involved than through the wireless networks," he says. "Cell phones are so widely used that ring tones are one of the best ways to promote our music."

From mid-April through June 1, TVT used zingy.com to promote the May 7 release of Naughty by Nature's (NBN) iicons. Fans were able to download celebrity greetings and a prerelease ring tone of "Feels Good" featuring 3LW. Each download was a free entry for a customized voicemail greeting by NBN's Vinnie & Treach.

Vinnie says, "It's great to be able to give our fans some personalized chat, along with one of our new singles for their cell phones."

Zingy's hottest paid download has been for Eminem's "Without Me" ring tone, which has racked up more than 50,000 sales since the album The Eminem Show sold 285,000 copies on release day, Grinda reports. Its latest promotion with Atlantic involves Craig David, Trick Daddy, Nappy Roots, and LMNT.

New York-based music management company Diggit! Entertainment includes TLC on its client list. The company is launching Diggit! Multimedia this fall-a venture described by Diggit! president Bill Diggins as "a one-stop shop for interactive communication between an artist and their fan community . . . we'll use TLC as an example to show how to repackage and syndicate any artist's celebrity-branded products to all wireless channels, such as cell phones, PDAs, Internet sites, and other new technologies." Included will be loyalty program ID cards for discounts that are activated by cell-phone purchases, voice messaging, icons and logos, and ring tones.

FINNISH DEMONSTRATION

The concept was demonstrated in Finland last fall with BMG act Five, utilizing top Finnish wireless operator Soneva. "It was tied in with print, radio, TV, music stores, and a flyaway contest for a taping for the Top of the Pops TV show," Diggins notes. He expects the service to be a boon to marketing partners. "Most sophisticated [label] marketers want personalized access to their artists' fans, with continual feedback on their likes and dislikes related to wireless content."

The fan-club program Spears launched through wireless entertainment company WFX kicked off in mid-May with a two-month exclusive at Best Buy's 500 stores. In conjunction with marketing and technology partner Samsung (in a sponsorship agreement positioning Samsung as the official wireless-phone manufacturer of Spears and her Dream Within a Dream concert tour), the Britney WFX cell-phone service was offered at $19.99, including a three-month, prepaid subscription.

The retail package, which is being extended to other chains very soon, features collectible merchandise, a membership card with access to Spears' exclusive messages, a replica tour laminate card, and a static-cling decal. The program allows members to get backstage reports directly from Spears on their wireless phones, as well as her opinions on the latest fashion and lifestyle trends.

"WFX is first to market with the most powerful application for wireless entertainment we've seen to date," says Best Buy personal solutions VP Dave Sprosty. "We were excited to offer this new technology exclusively to our customers."

Samsung wireless terminals marketing VP Randy Smith adds, "Through Britney WFX, we're able to create excitement with her fans that is transcending to our new cell phones. As a result, a lot of our major retail partners, like Best Buy, are getting Britney into their marketing plans."

In statement, Spears told Billboard that the offering is an "exciting new way for me to stay connected to my fans."

WFX president/CEO Jed Alpert notes that the company is dedicated to creating wireless entertainment programs with the biggest brands available and that Spears was a good place to begin. He recalls, "It took about six months to put the program together, with a wholesale price of about $14 to Best Buy that includes a superstar [10%-11%] royalty to Britney."

Other artist deals are in the works, as well as more entertainment and sports-related brands for the fall and holiday season.