MUSIC and media group Chrysalis has launched a company to capitalise on the craze for mobile phone ringtones.

The business, Chrysalis Mobile Solutions, has been launched in response to the market demand for ringtones and digital downloads via mobile devices, estimated to be worth about £610m a year.

The group operates radio stations Century and Heart FM in the North-East.

A spokesman for Chrysalis said: "Chrysalis Mobile is hoping to benefit from the growing popularity of real tunes - clips of actual songs edited for mobile phones."

He said the group's relationships in the music industry would help secure the master rights necessary for creating "real" ringtone.

Chrysalis Mobile will act as provider to media and retail partners, sourcing and hosting music for consumers on demand. The mobile content offered by the service will include:

* Monophonic and polyphonic ringtones;

* Real tunes, offering mobile edits of songs;

* Images and other artist content;

* Downloads of complete songs.

Branded ringtone services for Chrysalis Radio's Galaxy and Heart stations will be two of the company's first products to be launched.

The new division will be led by managing director Ian James, formerly director of Chrysalis Radio Interactive, and Nick Gregg, strategy and business development director and founder of mobile strategy consultancy MarketClusters.

They will report to Chrysalis Group chief executive Richard Huntingford.

Mr Huntingford said: "Mobile is fast becoming one of the most important new channels for music content delivery and crucially, unlike the Internet, it is a 'here and now' revenue stream.

"Through Chrysalis Mobile we are creating a highly innovative business that will both serve our existing Chrysalis Radio and Music divisions and also provide a valuable outsourced service to other players in the broader media and retail market places.

"With our combination of music and radio assets, we are uniquely placed to build a leading position in the fast developing and lucrative music content space."