Bundling Custom Ringtones

Atlantic Records UK says the new CD single from rapper Fabolous it released this week contains software that lets users choose any part of the song and download it to their mobile for use as a ringtune. Based on "MyTone" software from Bounce Technology, buyers put the CD in their computer, choose which part they want as a ringtune, and MyTone sends an SMS with a WAP link to download the content, which is free beyond any data traffic charges.

It's an interesting new combination of things that aren't really new -- record companies have been offering ringtones and other mobile content to entice people to buy hard copies of music, and MyTone sounds a lot like Xingtone, except Bounce is selling to record labels rather than end users.

But why would Atlantic UK choose to cannibalize ringtone sales by giving them away? It's just a reflection of the higher priority record labels put on sales of physical goods, rather than digital ones.