Study shows MP3 players entering mainstream society
Tuesday September 21, 2004
No longer confined to technology fans and those ahead of the curve, MP3 players are entering mainstream society as prices fall and general consumers get used to them. This conclusion is part of the findings from a new study called " Worldwide Compressed Audio Player Forecast 2004-2008: MP3 Reaches Far and Wide" from technology consulting firm IDC. Key developments in this growth, according to a press release about the new study, are:
- The worldwide portable flash player market exploded in 2003 and is expected to grow from 12.5 million units in 2003 to over 50 million units in 2008, fueled by falling flash memory costs and the availability of players at multiple storage capacities.
- Apple, which has been a portable jukebox market leader since introducing the iPod in late 2001 and iPod mini in early 2004, will see new competition in the portable jukebox player market during the forecast period from vendors offering devices based on 1.0in. and smaller hard drive form factors.
- The portable and home MP3 CD/MiniDisc player categories will grow only modestly during the forecast due to stagnating portable and home CD player markets, growing consumer awareness of and falling price points on portable flash and jukebox devices, and cannibalization by DVD players and DVRs of standalone home compressed audio players.
- The availability of subscription and pay-per-download paid music service providers (MSPs) will drive demand for compressed audio players by providing an exciting new source of music content for consumers and because paid MSPs are expected to partner with device manufacturers on consumer education and marketing programs.
- The "Other" category of devices that support compressed audio encoding and decoding as a secondary feature, such as DVD players, gaming devices, DVRs, and mobile phones, is expected to lead unit shipments and revenue for the overall compressed audio player market during the forecast period. These devices are also expected to represent competitive substitutes for audio-only devices.