One of the more bizarre mini-rants I witnessed at CTIA was the representative of a major record label publicly berating operators about holding back the mobile music industry, with the accusation that they “just didn’t get it”. This from a sector who couldn’t even see “it”, let alone get it for the last 6 years. However, they’re now all clearly in post-epiphany mode and as eager as any convert to spread the word.

There is more to this “new” music thing than I think they understand and simply putting out a few ringtones is like putting an Elastoplast on a man who has just lost both legs in a car accident.

The major contribution a record label could make to an artist in the old days was their marketing and distribution muscle. However, this is steadily eroding, even while they’re distracted by milking the ringtone market.

We wrote a few weeks ago about The Common Man’s Idol, which was launched in Finland, with the start ofGoogle Idol following shortly after. This is currently dominated by bizarrely brilliant Anthony and Katy.

However, Sandi Thom, who has just signed million pound contract with the mighty Sony Corp, went one better in the democratisation of the music business. Frustrated by lack of money and resources, the 24 year old singer/songwriter started webcamming gigs from her flat.

The first night 70 people tuned in and only 2 weeks later, 100,000 a night. Only a handful of stars could be confident of filling a stadium that big, so this is a huge achievement.

Sony then stepped in and signed up Sandi, with the deal being finalised on the webcast, naturally enough.

What I can’t quite understand though is why Sandi felt the need to sell out at all. With the job of “breaking” the artist already accomplished - or at least, with the ball rolling fast downhill - surely, her best bet would have seen to start selling direct.

While the record industry might have won this minor skirmish, just as they think they’ve embraced the new paradigms, it does signal another impending storm. They can sell ringtones today, but their very role in the music value chain is still in question - today, more than ever before.

By the way, I’m still going to stick to my somewhat controversial view, that ringtones will start to implode this year. User generated content, sharing and predatory pricing will start to take its toll.