warned Wednesday that one of its carrier partners plans to develop direct licensing relationships with major record labels next year, which will cut into the online media provider's revenue from ringtones.
As a result, InfoSpace said it plans to cut costs and make operational changes to its business, with specific details to be released within 30 days.
InfoSpace's label tone business generated $55 million in revenue in the first half of the year. The company's total revenue for that period was $186.1 million.
"While we are disappointed in this decision and we will realign costs to reflect the revenue reduction, we maintain a strong presence in mobile infrastructure and search services," said Jim Voelker, chairman and chief executive, in a statement.