BMI released its annual projections on the state of the ringtone business, with little good news. The company predicts that U.S. ringtone sales will for the first time fall this year to $550 million, $50 million less that the total revenues received at the end of 2006.

The fact that the ringtone market is maturing and experience flattening growth is no secret, and frankly expected by both the wireless and music industries.

The good news—ringback tone sales are expected to total $65 million this year. BMI did not measure ringbacks last year so has no bar to just this total against.