Report: The Changing Way We Capture, Record, and Store Digital Content - US

Scope and Themes
What you need to know
Definition
Data sources
Sales data
Consumer survey data
Abbreviations and terms
Abbreviations
Terms
Executive Summary
Rapid growth behind
Challenges from portables and the cloud ahead
PC role still being defined
PC usage more common than stereo, PPV/VOD
The direct to device threat
Saturation
Portability
Displays are where the money is
Building set-top box functionality into the television
Digital frame sales quadruple over two years
Video playback segment driven by DVRs
Off-site storage to decrease set-top box sales
Shiny disc player sales stalled
Convergence and redundancy
Spoils of battle to go to the best interface
PCs and portables take audio
Fragmentation
Young pioneers
Market Size
Changing media usage patterns
How listening habits are changing
- Figure 1: Audio content consumption behavior within last week, November 2008
The changing face of video consumption
- Figure 2: Video content consumption behavior within last week, November 2008
A rich landscape of products
- Figure 3: Total U.S. supplier sales of digital media hardware, in current prices, 2004-12
- Figure 4: Total U.S. supplier sales of digital media hardware, at inflation adjusted prices, 2004-12
Competitive Context
Portable technology
- Figure 5: Cell phone features used within last month, February 2007-March 2008
Disruption by the cloud
Advanced gaming consoles take on set-top boxes
Market Segmentation
Overview
Access to content at the heart of segment competition
Set-top boxes expected to make the greatest gains
- Figure 6: U.S. supplier sales of digital content hardware, by segment, 2004-12
- Figure 7: U.S. supplier sales of digital content hardware, by segment, 2006 and 2008
Displays
Overview
Digital transition, new technologies drive sales revenue
- Figure 8: Total U.S. supplier sales of displays, in current prices, 2004-12
- Figure 9: Total U.S. supplier sales of displays, at inflation adjusted prices*, 2004-12
Feature convergence, touch screens, and 3D on the horizon
TVs: a new window on the web?
- Figure 10: Samsung Series 7 LED TV
- Figure 11: U.S. sales of digital displays, by segment, 2006 and 2008
Digital display ownership
- Figure 12: Digital photo display ownership, by age, November 2008
- Figure 13: Digital photo display ownership, by household income, November 2008
- Figure 14: Digital photo display ownership, by ethnicity/Hispanic origin, November 2008
TV Ownership Trends
Multiple TV ownership the norm
- Figure 15: Number of TVs owned, October 2007-December 2008
Substantial upgrade opportunities remain in replacing tube televisions
Flat-panel ownership relatively consistent across age groups
- Figure 16: Type of TV owned, by age, October 2007-December 2008
Flat-panel ownership driven by household income
- Figure 17: Type of TV owned, by household income, October 2007-December 2008
Large screen TVs remain a potential growth arena
- Figure 18: Size of TV owned, by age, October 2007-December 2008
Kitchen displays for higher-income groups
- Figure 19: Size of TV owned, by household income, October 2007-December 2008
Attitudes toward New Uses for TVs
Will television displays remain relevant?
- Figure 20: Online video as a replacement for television, by age, November 2008
- Figure 21: Online video as a replacement for television, by household income, November 2008
- Figure 22: Online video as a replacement for television, by ethnicity/Hispanic origin, November 2008
What' s new on TV: The web
- Figure 23: Interest in web access on home television, by gender, February 2009
Young respondents want web action on the TV
- Figure 24: Interest in web access on home television, by age, February 2009
PCs as Media Hubs
Overview
PC commoditization takes hold
- Figure 25: Total U.S. supplier sales of PCs, in current prices, 2004-12
- Figure 26: Total U.S. supplier sales of PCs, at inflation adjusted prices*, 2004-12
The netbook revolution
- Figure 27: HP Mini 1000 R (Vivienne Tam limited edition)
- Figure 28: U.S. sales of PCs, by segment, 2006 and 2008
PC Entertainment Usage
Seven hours a week spent on the home PC
- Figure 29: Average hours of weekly PC usage, by gender, age, household income, and race/Hispanic origin, October 2007-December 2008
PC video usage: 12 inches or 12 feet?
- Figure 30: Sony LV All-in-one PC
- Figure 31: Attitudes on viewing content on television, PCs, and cell phones, by age, July 2008
The PC is the primary music player for one in four online
- Figure 32: PCs as audio equipment, by age, February 2009
The future of PC video looks cloudy
- Figure 33: PCs as video playback hardware, by gender, February 2009
Follow the leaders: how 18-34s use video on PCs
- Figure 34: PCs as video playback hardware, by age, February 2009
The PC as DVR
- Figure 35: Interest in DVD/DVR functions on PCs, September 2008
User-generated media usage
- Figure 36: Usage of user-generated media, by age, February 2009
Digital Video
Overview
Expanding array of features
- Figure 37: Vudu set-top box
Blu-ray unable to lift shiny disc player sales
- Figure 38: U.S. supplier sales and forecast of digital video hardware, in current prices, 2004-12
- Figure 39: Total U.S. sales and forecast of digital video products, at inflation adjusted prices, 2004-12
- Figure 40: U.S. sales of digital video products, by segment, 2006 and 2008
On-demand: DVR, PPV, and VOD
PPV and VOD usage as pillars of content access
- Figure 41: PPV and VOD usage, by age, household inocme, and race/Hispanic origin, October 2007-December 2008
Women more keen DVR usage
- Figure 42: Attitudes toward DVRs, by gender, February 2009
DVR usage: 25-34 year olds the DVR generation
- Figure 43: Attitudes toward DVRs, by age, February 2009
Digital Audio
Overview
Sales hampered by rise of PC and portables
- Figure 44: U.S. sales and forecast of home audio hardware, in current prices, 2004-12
- Figure 45: Total U.S. sales and forecast of home audio hardware, at inflation adjusted prices, 2004-12
Strong potential for docks, home theater
- Figure 46: Klipsch iGroove
- Figure 47: U.S. sales of home audio hardware, by segment, 2006 and 2008
Trended audio ownership
- Figure 48: Home audio ownership, 2002-08
Audio Usage Behavior
PCs taking steam out of dedicated audio
- Figure 49: Home music listening behavior, by gender, February 2009
Younger listeners go digital
- Figure 50: Home music listening behavior, by age, February 2009
Opportunity to market multifunction devices to low-income users
- Figure 51: Home music listening behavior, by household income, February 2009
Market Drivers
Content anytime, anywhere
- Figure 52: Desire for universal, comprehensive content, by age, race/hispanic origin, November 2008
Slashed spending on discretionary items
- Figure 53: U.S. unemployment rate, October 2008-April 2009
- Figure 54: U.S. personal income and consumption, October 2008-February 2009
Online video: The new digital revolution
- Figure 55: Use of free online video, June 2008
UGM
- Figure 56: Use of user-generated media, by age, February 2009
Declining storage costs
Advertising and Promotion
Targeting the dual-income household
- Figure 57: Role in purchasing, by gender, age, household income, and race/Hispanic origin, February 2009
The advertising landscape
- Figure 58: Adspend by leading brands, 2006 and 2007
Online advertising
Television advertising
HP chases women
- Figure 59: Hewlett-Packard ad, 2008
Microsoft gets playful
- Figure 60: Microsoft ad, 2009
TiVo takes on cable
- Figure 61: TiVo ad, 2009
Verizon demystifies FIOS
- Figure 62: Verizon ad, 2008
Product Ownership
PCs, home audio, MP3 players, camcorders, and home networks
Ownership rates consistent among under-65s
- Figure 63: Hardware ownership, by age, October 2007-December 2008
Making PCs optional for low-income users
- Figure 64: Content device ownership, by household income, October 2007-December 2008
Penetration for broadband, pay TV, smart phones, and media centers
- Figure 65: Advanced digital content device ownership, February 2009
Cord-cutting among younger respondents
- Figure 66: Advanced digital content device ownership, by age, February 2009
- Figure 67: Advanced digital content hardware and subscription ownership, by gender and income, February 2009
Race/Hispanic Origin
Tech-savvy Asians lead PC, advanced TV ownership
- Figure 68: Content hardware ownership, by race/Hispanic origin, October 2007-December 2008
Web cell phones a key platform for blacks and Hispanics
- Figure 69: Advanced digital content device ownership, by race/Hispanic origin, February 2009
Hispanics enjoy experimenting with digital music
- Figure 70: PCs as audio equipment, by race/Hispanic origin, February 2009
Short videos lead for black respondents
- Figure 71: PCs as video equipment, by race/Hispanic origin, February 2009
Interest in watching UGM, not posting
- Figure 72: Usage of user-generated media, by race/Hispanic origin, February 2009
Low DVR engagement amongst Hispanics
- Figure 73: Attitudes toward DVRs, by race/Hispanic origin, February 2009
Strong interest in viewing web content on TVs
- Figure 74: Attitudes on TV/web usage, by race/Hispanic origin, February 2009
Appendix: Other Useful Consumer Tables
Attitudes toward non-traditional usage of televisions, by household income
- Figure 95: Interest in web content on TVs, by household income, February 2009
Ownership and usage trends
Use of video and audio by race/Hispanic origin
- Figure 96: Video consumption behavior within last week, by race/Hispanic origin, November 2008
- Figure 97: Home music listening behavior, by race/Hispanic origin, February 2009
Cable vs. set-top box by gender
- Figure 98: Advanced digital content device ownership, by gender, February 2009
Audio and video usage by household income
- Figure 99: Usage of music on PCs, by household income, February 2009
- Figure 100: PCs as video equipment, by household income, February 2009
- Figure 101: Usage of user-generated media, by household income, February 2009
Wireless networks the rule, carrying eight of 10 networks
- Figure 102: Computer network type, by age, household income, and race/Hispanic origin, October 2007-December 2008
WebTV penetration and interest
- Figure 103: Web TV ownership/purchase interest, by age, household income and race/Hispanic origin, October 2007-December 2008
Appendix: DVD Player Ownership and DVD Purchasing
- Figure 104: Household DVD player ownership, 2002-08
- Figure 105: Household DVD player ownership, 2003-08
- Figure 106: Recent purchase of DVDs, 2003-08
- Figure 107: DVDs purchased in the last year, 2003-08
Appendix: Trade AssociationsThe Changing Way We Capture, Record, and Store Digital Content - US - May 2009

The Changing Way We Capture, Record, and Store Digital Content - US - May 2009

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