So in this simple example, ring tones become viral, they spread. Now the real content opportunity is created. What we want is a user driven content system that bubbles up the best concepts, so popularity is truly viral. A new artist creates a track gives it to their buddies and urges them to share it. Thus we have:

There are a few problems here. In Skype's case they have a mechanism for distributing ringtones. It works just like voice mail. When you go to share your ringtones they are simply uploaded so the next time that person calls they will get the new ringtone. No need for a central server. Keeping track of how many are using a certain ringtone would be a more difficult exercise although this could be part of the log on experience. For the ring tags must tie back to the contacts server. Only then will the ring tones follow you everywhere, which is important if a paid viral market is desired.

Other product angles are also available. For example right now I can't download a ringtone for a one time use. A onetime use would enable me to give a "buddy" an experience. If you get positive feedback you could buy it for them etc. Thus even enabling one time uses and forwards for different ring tones means you infect others. Which leads one to thinking rather than buying one ring tone you may be better off buying 10 different ones for a dollar and only being able to share with one person per ring.

Now I can hear some objections. This makes it more complicated. Users will be confused by the ring tone they get when dialing etc. I doubt it. More importantly I think kids would get it and start creating their own content. That is consistent with eBay's desire to sell this content too.

So while it is easy to ignore Skype's first foray into content distribution, the opportunities could become many times more interesting.