On Apple’s Move Against The Culture Of Greed.

Ringtones are a highly profitable racket for cell phone companies. Music is a highly profitable business for music company executives.

Apple just entered the ringtone business using record industry music. Did Apple join the club, or move against the culture of greed?

Much has been written about cell phone ringtones since Apple announced a new feature in iTunes which lets us pay again for music we’ve already paid for once, so we can listen to it again when the phone rings.

Selling ringtones to cell phone users is obscenely profitable and yet another greedy way the cell phone companies rape abuse their customers.

By adding a 99-cent ringtone purchase feature to iTunes Store, did Apple join the culture of greed to cash in on the outrageous profits of ringtones, or set the stage for free ringtones in future iPhones?

Unfortunately, Apple’s entry into ringtones be a little of both—greed now, nearly free later. The cell phone companies don’t make it easy to create your own ringtones, regardless of the music source. Some charge up to $3.00 per ringtone, with the average around $2.50. Some cell phone companies let you rent a ringtone for 90 days. Then you pay again. See? Obscene.

The recording industry and the cell phone companies have been cashing in on ringtones, which some estimate to be a $5-billion a year industry. That’s “B” as in Billion. Is Apple out to get a cut? Yes. Will they throw a monkey wrench into the gears that drive those obscene ringtone profits? Yes.

How? Apple is letting ringtones loose. As of today there are about half a millions songs on the iTunes Store which qualify for Apple’s iTunes ringtone creation feature. The whole thing is a bit clumsy, but it works. Select an eligible song, edit the fade-in and fade-out points, purchase for 99-cents.

The ringtone gets loaded to your iPhone during the next sync. The total cost for the ringtone is $2.00, plus you get the song. Short of hacking your way to free music and free ringtones, that’s the best deal available and Apple made the process relatively simple.

Everybody gets a cut. Apple gets a cut, the record company gets a cut. Hmmm. Wait a minute. The cell phone company doesn’t get a cut. The recording artists don’t get a cut, either. See, the recording industry got the US Copyright Office to determine that ringtones were not “derivative works” so don’t infringe on the copyright of the songwriter. There’s no honor among thieves.

It’s easy to put some blame on Apple for this ringtone mess, but Apple merely found a way to make the recording industry happier by sticking with Apple, and gave us an option for ringtones that’s affordable, and not difficult to use. Mostly.

What if I have some music imported into iTunes from CDs. Can iTunes make ringtones from that music? No can do. How would the record industry get their cut? Already there are 3rd party solutions that take AAC music files (the kind that iTunes creates when you import a CD) and convert them to a ringtone—click, click, click. Sync. Done.

The Apple iTunes ringtone create lets you select a starting point and ending point, adds fades to both ends, with up to 30 seconds of music in between. That process makes for a better ringtone and saves much needed memory on your iPhone.

By developing a way to create ringtones, and by leaving the door open wide enough for 3rd party ringtone makers to step in, iPhone users will have the ability to create custom ringtones from any source, and do it with a few point and click steps. Free. Apple doesn’t get a cut, the recording industry doesn’t get a cut. See? Capitalism.

Are you worried that creating custom ringtones from music you’ve already purchased is illegal and the RIAA music cops will knock on your door? Don’t be. From what I can see, it’s perfectly legal for you to use music you’ve already purchased to create a rington. Remember, it was the recording industry that won a decision before the Copyright Office last year which determined that ringtones are not “derivative works.” Looks to me as though it all falls under fair use.

Apple has entered the ringtone business and they’ll make money. The recording industry will make money. iPhone users have a way to make ringtones from previously purchased music.

Thank Apple. They opened the door.