MP3 Players and Other Portable Audio Players - US - June 2006

Table of Contents

• Introduction and Abbreviations
• Introduction
• Definition
• Abbreviations and terms
• Abbreviations
• Terms
• Executive Summary
• Segment reversal in portable audio
• Portability, broadband and accessories drive MP3 player sales
• Radio - an old/new segment
• The iPods have it
• Not Apple
• Sony
• Creative
• Advertising and promotion--is it cool?
• Preferred sources for MP3 players
• The next small thing
• Product convergence and competition
• Compatibility and connectivity, concerns for the future
• Market Drivers
• Portable audio paradigm shift
• Downloadable music services help grow MP3 player sales
• Legal vs. illegal music
  • Figure 1: Legal music downloads, April 2006
  • Figure 2: Frequency of music downloads, April 2006
• Potential downside to device/download connection
• Growth of broadband and the Internet
  • Figure 3: U.S. broadband household projections, 2000-10
  • Figure 4: Manufacturers' shipments of CDs and cassettes vs single and album downloads, 2004-05
• Three key consumer groups
  • Figure 5: U.S. Population, by generation, 2000-10
  • Figure 6: Ownership of portable music players, by age, April 2006
  • Figure 7: Ownership of MP3 players, by gender, April 2006
• Hispanic population owns more MP3 players
  • Figure 8: U.S. population, by age and Hispanic origin, 2006
  • Figure 9: MP3 player, music service, and satellite radio ownership/subscription, by ethnicity, April 2006
• iPod + iTunes = icon
  • Figure 10: Apple Computer/iPod activity, 2001-06
• Whistle a happy iTune
• The downside of being market leader
• MP3 player accessories
• Expanding MP3 player capability
  • Figure 11: Ownership of MP3 player accessories, April, 2006
• Into the house
• Into the car
• Convergence
• Competition from cell phones
• New uses for new technology
• Market Size and Trends
  • Figure 12: Total U.S. manufacturer sales of MP3 players and other portable audio players, at current and constant prices, 2001-06
  • Figure 13: Graph: Total U.S. manufacturer sales of MP3 players and other portable audio players, at current and constant prices, 2001-06
• Market Segmentation
• MP3 players versus other portable audio players -- a contrasting story
  • Figure 14: Total U.S. manufacturer sales of MP3 players and other portable audio hardware, at current prices, 2001-06
  • Figure 15: Graph: Total U.S. manufacturer sales of MP3 players and other portable audio hardware, at current prices, 2001-06
• Segmented by format
  • Figure 16: Sales of portable audio players, segmented by format, 2004 and 2006
• Portable MP3 players
  • Figure 17: Manufacturer sales of portable MP3 players, at current and constant prices, 2001-06
• Portable CD players/boom boxes
  • Figure 18: Manufacturer sales of portable CD players/boom boxes, at current and constant prices, 2001-06
  • Figure 19: Unit sales of portable CD players, with average unit price, 2001-06
  • Figure 20: Graph: Change in unit sales of portable CD players compared with change in average unit price, 2001-06
• Portable radios & cassette players/recorders
  • Figure 21: Sales of portable radios & cassette players/recorders, at current and constant prices, 2001-06
• Satellite Radio
• Supply Structure
• Companies and brands
• Introduction
• Apple Computer, Inc.
• Overview
• iPod
• iTunes Music Store
• Sony Corporation of America
• Overview
• MP3 players
• Other portable audio players
• Connect Music Store
• Creative Labs
• SanDisk
• iRiver America
• RCA
• Philips Electronics North America
• Samsung Electronics Co., Ltd.
• Panasonic Corporation of America
• Advertising and Promotion
• Introduction
• MP3 players, give away and cross promotion
• Satellite Radio
• Companies
• Apple
• iTunes Marketing
• Sony
• Samsung
• Panasonic
• Toshiba
• iRiver
• Dell
• SanDisk
• Philips
• Retail Distribution
• Overview
• Source of MP3 player purchase
  • Figure 22: Type of retail location of MP3 player purchase, April 2006
  • Figure 23: Specific retail location of MP3 player purchase, April 2006
• Best Buy
• Wal-Mart
• Circuit City
• Target
• RadioShack
• Apple Store
• Sony Style
• Catalog/Internet retailers
• The Consumer
• Introduction
• Summary
• Portable audio ownership patterns
• Portable audio purchasing patterns
• Technology attitudes
• MP3 player usage
• User satisfaction
• Ownership patterns of portable players, accessories, and subscription services
  • Figure 24: Ownership of audio products/subscription to services, May 2006
  • Figure 25: Ownership of audio products/subscription to services, by age, May 2006
  • Figure 26: Don't own audio products/subscription to services, but plan to get in next 6 months, by age, May 2006
  • Figure 27: Ownership of audio products/subscription to services, by household income, May 2006
  • Figure 28: Don't own audio products/subscription to services, but plan to get in next 6 months, by income, May 2006
  • Figure 29: Ownership of audio products/subscription to services, by Hispanic origin, May 2006
  • Figure 30: Don't own audio products/subscription to services, but plan to get in next 6 months, by Hispanic origin, May 2006
  • Figure 31: Ownership of audio products/subscription to services, by presence/number of children in household, May 2006
  • Figure 32: Don't own audio products/subscription to services, but plan to get in next 6 months, by presence/number of children in household, May 2006
• Ownership patterns of MP3 players
  • Figure 33: Gift receipt and giving and multiple ownership of MP3 players, May 2006
  • Figure 34: Gift receipt and giving and multiple ownership of MP3 players, by age, May 2006
• MP3 player brands owned
  • Figure 35: Brands of MP3 players owned, May 2006
  • Figure 36: Brands of MP3 players owned, by age, May 2006
  • Figure 37: Brands of MP3 players owned, by household income, May 2006
• Portable audio purchases
  • Figure 38: Stereo/radio equipment bought in previous 12 months, January-September 2005
• Amount spent on portable audio
  • Figure 39: Amount spent on last portable audio purchase, May 2006
  • Figure 40: Amount spent on last portable audio purchase, by gender, May 2006
  • Figure 41: Amount spent on last portable audio purchase, by age, May 2006
  • Figure 42: Amount spent on last portable audio purchase, by Hispanic origin, May 2006
• Retail locations where MP3 players are purchased
  • Figure 43: Location of MP3 purchase, May 2006
  • Figure 44: Location of MP3 purchase, by presence/number of children, May 2006
  • Figure 45: Location of MP3 purchase, by location, May 2006
• Stores where MP3 players are purchased
  • Figure 46: Store, website, or catalog where MP3 player purchased, May 2006
  • Figure 47: Store, website, or catalog where MP3 player purchased, by household income, May 2006
• Technology purchasing attitudes of respondents
  • Figure 48: Attitudes towards new technology purchases, May 2006
  • Figure 49: Attitudes towards new technology purchases, by age, May 2006
  • Figure 50: Attitudes towards new technology purchases, by race/ethnicity, May 2006
  • Figure 51: Attitudes towards new technology purchases, by presence/number of children, May 2006
• MP3 player capacity
  • Figure 52: Storage capacity of MP3 players, May 2006
  • Figure 53: Storage capacity of MP3 players, by age, May 2006
• Plans to upgrade MP3 player
  • Figure 54: Plans to upgrade MP3 player to increase capacity, May 2006
  • Figure 55: Plans to upgrade MP3 player to increase capacity, by household income, May 2006
  • Figure 56: Plans to upgrade MP3 player to increase capacity, by presence of children, May 2006
• Satisfaction with MP3 players
  • Figure 57: Overall satisfaction with MP3 player, May 2006
  • Figure 58: Overall satisfaction with MP3 player, by age, May 2006
  • Figure 59: Overall satisfaction with MP3 player, by household income, May 2006
• When MP3 players are used the most
  • Figure 60: Activities while listening to MP3 players, May 2006
  • Figure 61: Activities while listening to MP3 players, by age, May 2006
  • Figure 62: Activities while listening to MP3 players, by income, May 2006
• Amount used
  • Figure 63: Hours per week spent listening to MP3 player, May 2006
• Who pays to download music
  • Figure 64: Purchase of downloaded music, May 2006
  • Figure 65: Purchase of downloaded music, by gender, May 2006
  • Figure 66: Purchase of downloaded music, by age, May 2006
  • Figure 67: Purchase of downloaded music, by income, May 2006
• Download frequency
  • Figure 68: Frequency of music downloads, May 2006
  • Figure 69: Frequency of music downloads, by age, May 2006
• Satisfaction with download process
  • Figure 70: Ease of download process, May 2006
• Downloads other than music
  • Figure 71: Non-musical downloads, May 2006
  • Figure 72: Non-musical downloads, by gender, May 2006
• Future and Forecast
• Future trends
• U.S. Hispanic population growth
  • Figure 73: Population by race and Hispanic origin, 2001-11
• Advances in NAND memory
• Video MP3 players
• Satellite radio
• Potential portable problems
• Competition from hybridization
• Connectivity and compatibility
• More competition from cell phones
• Creative v Apple
• The MP3 world beyond Apple
• Market forecast
• Portable MP3 players
  • Figure 74: Forecast of total U.S. manufacturer sales of portable MP3 players, at current and constant prices, 2006-11
  • Figure 75: Graph: Forecast of total U.S. manufacturer sales of portable MP3 players, at current and constant prices, 2006-11
• Forecast factors
• Appendix: Trade Associations