Skype signs up for Warner Brothers music

By Steve Malone

Posted on 31 Jan 2006 at 11:04

VoIP pioneer Skype has signed a deal with Warner Brothers to offer ringtones featuring the company's roster of best selling artists.

The artists include some of the world's biggest names including Madonna who will be leading the charge onto a phone near you with tracks from her latest album 'Confessions on the Dancefloor'

Each 30 second sound clip will cost $1.50 and follows similar deals that the music arm of Warner Brothers has made with the mobile phone industry. However, this is thought to be one of the first deals made with a VoIP company.

Although Skype makes its software available for free, it makes its money through offering premium services. The deal with Warner is expected to be only the first of a series of announcements with the other major labels.

Skype was bought by eBay last year for $2.6 billion. Since then, the company has been gearing itself up for a push into the more consumer-based market characterised by eBay's customers rather than its base in geeky early adoptors.

Ringtones have become big business for the music industry. It is thought that the profits made from ringtones now outstrip those made from CD singles.