It must be hard to manage products at a carrier. Every new innovative thing you want to throw into the market is opening the door to competition with a bread and butter business.
Take, for example, Sprint’s launch of OTA (Over The Air) downloads of music. You can download a song to your phone for $2.50. While that may seem expensive to an iTunes user accustomed to paying $.99 or the file-sharing user accustomed to paying nothing, it is actually a great deal compared to the price of a typical ringtone. Of course, Sprint currently won’t allow you to convert a music download into a ringtone…but this discrepency in pricing can’t last.
Mocoblog has broken down the economics:
Truetone (30 second clip) vs Full-Track Math (3:00 minute song)
Truetone @ $2.99/song = $.099/second
Full Track @ $2.50/song = $.014/second
Wow! 10c vs 1c per second of music. I guess the 9c difference accounts for the cropped music, lowered audio quality, and ability to have you (and everyone else hear) it ring. Makes sense.