Obviously you always have to be a bit suspicious of research published by companies who offer commercial services in the area being researched, but this one is interesting even if it slightly exaggerates the risks. Digital media company Qpass say they reckon that a technical loophole that allows consumers to create free ringtones could be costing the music industry 50 million euros a year.
Qpass's study of 42 mobile portals and 58 online music services, combined with anecdotal chat room evidence, suggests that an increasing number of people are downloading the music used by digital music platforms as 'previews' and converting them into ring tones.
The company say that while those preview clips don't affect full download sales, a thirty second segment of a song is more than enough for a ring tone. Because on many digital music sites you can save those clips by simply 'right clicking', as more people become savvy as to how to use downloads for their ringtones this supply of clips could severely effect the ringtones market.
Qpass reckon the loophole could cost the music industry 336 million euros by the end of 2007.