iPod Generation - UK - April 2007

Table of Contents

• Issues in the Market
• Report Synopsis
• Home, Family and the Wider Community
• Friends, Family and Communication
• Taking Control of Finances
• Work and Career
• The Inner (and Outer) Self
• Leisure and Holidays
• Making the most of the Internet
• Ethics and the Environment
• The Future
• Mintel Research
• Technological Typologies
• Generation Typologies (GMI)
• Techie Typologies (TGI)
• Vox Pops interviews
• Lifestage and Special Groups
• Definitions
• Abbreviations
• Insights and Opportunities
• Scope to increase UK holidays
• A green future
• The electronic gym
• Making the most of time-shifting
• Lifestyle Sector in Brief
• Naming a generation...
• ...and taking control
• Attitude, as well as age, plays a role
• Cyberspace can' t replace family or friends
• Better at spending than saving
• Leisure -- getting out of the house, and getting fit
• Pirates, iPods and the Internet
• Sector Environment: The Connected Generation
• Key Points
• Internet access hits saturation point
  • Figure 1: Internet penetration, 2001-06
  • Figure 2: Internet penetration, percentage point change, by gender, socio-economic group and age, 2001-06
• MP3s -- evolution or revolution?
• The rapid increase in broadband take-up...
  • Figure 3: Methods of Internet access, 2003-06
• ...allows the iPod Generation to take control of their own media
• Mobile phone sales continue to increase...
  • Figure 4: UK retail sales of mobile phone handsets, by volume and value, 2000-06
• ...leading to new ways of getting online
• Sector Environment: The Digital Audio Market
• Key Points
• Evolution of the digital audio player
  • Figure 5: Summary of the evolution of the digital audio player, 1997-2006
• File sharing drives the market
• Rights holders fighting a losing battle...
• ...but legal downloads increase as the market matures
• BPI announces growth in UK MP3 sales
• Christmas kills iTunes...
• ...and the MP3 could kill the CD
• Sector Environment: Convergence and New Technology
• New technology blurs barriers for the iPod Generation...
• ...with mobiles leading the way
• The battle for control of the living room
• PCs move out of the home office...
• ...and games consoles move out of the bedroom
• Converting the iPod Generation to video on demand
• Can Apple TV take convergence to the mass market?
• More control to the iPod Generation...
• ...with the first user-generated TV star on the way?
• Sector Environment: Web 2.0 -- The iPod Generation Takes Control
• For media user to media provider
• Social networkers break into the mainstream...
• ...but it is the quiet revolution that is more significant...
• ...further shifting control to the consumer
• Money starts rolling into the new wave of websites
• Can big business capitalise on these trends?
• Sector Environment: The iPod Generation
• From Technofan to Technophobe -- the changing population
  • Figure 6: Breakdown of TGI Techie Typologies, 2006
• How to define the iPod Generation?
• From the gramophone to the iPod
• The tech generations -- boys' toys?
  • Figure 7: Breakdown of GMI Generation Typologies, 2007
• The young -- and the young at heart
  • Figure 8: Generation Typologies, by age, December 2006
• Paying for the downloads
  • Figure 9: Generation Typologies, by socio-economic group, December 2006
• Fun for all the family?
  • Figure 10: Generation Typologies, by lifestage, December 2006
• The Gramophone Generation goes mobile
  • Figure 11: Portable technology owned by the generations typologies, December 2006
• Staying young longer
  • Figure 12: Ownership of portable technology, by lifestage and generation typologies, December 2006
• Imports and experts
  • Figure 13: In-home technology owned by the generation typologies, December 2006
• Interactive media enter the living room
• High-tech nesting
  • Figure 14: Ownership of in-home technology, by generation typologies and lifestage, December 2006
• Innovations
• Apple TV taking convergence to the mass market...
• ...with mobiles leading the way
• User-generated TV stars?
• Home, Family and the Wider Community
• Key Points
• Family still number one
  • Figure 15: Importance of family and career, by techie typologies, lifestage and gender, 2006
• Technofans -- family, or career?
  • Figure 16: Importance of family and career, techie typologies, by gender, 2006
• Younger generation keen to get ahead
  • Figure 17: Willingness to sacrifice time with family in order to get ahead, by techie typologies, gender, and lifestage, 2006
• Women -- the more sociable sex?
  • Figure 18: Attitudes towards spending time with friends and family, by techie typologies, gender and lifestage, 2006
• Debunking the myth of the bedroom boffin...
• ...but only to a degree
  • Figure 19: Attitudes towards going out, by gender, lifestage and techie typologies, 2006
• House-proud Technofans?
  • Figure 20: Attitudes towards home decoration, by gender, lifestage and techie typologies, 2006
• Can the iPod Generation fix a shelf, as well as a PC?
  • Figure 21: Attitudes towards DIY, by gender, lifestage and techie typologies, 2006
• Friends, Family and Communication
• Key Points
• Investigating changing communication methods
• The iPod Generation stay close to their family...
  • Figure 22: Frequency of family contact, by the generation typologies, December 2006
  • Figure 23: Frequency of family contact, by generation typologies and lifestage, December 2006
• ...but not at the expense of their friends
  • Figure 24: Closeness to family and friends, by the generation tpologies, December 2006
• The generation gap -- and the iPod Generation gap
  • Figure 25: Closeness to family and friends, by generations typologies and lifestage, December 2006
• Keeping in touch with the parents
  • Figure 26: Regular means of communication with parents, by Generations typologies, December 2006
• Brothers and sisters -- to be heard but not seen?
  • Figure 27: Regular means of communication with brothers and sisters, by generation typologies, December 2006
• Christmas cards, postcards and the decline of the extended family
  • Figure 28: Regular means of communication with other family members, by generation typologies, December 2006
• Friendship -- a multimedia experience?
  • Figure 29: Regular means of communication with close friends, by generation typologies, December 2006
• Does modern technology help the iPod Generation to keep in touch?
  • Figure 30: Regular means of communication with other friends, by generation typologies, December 2006
• Generation text
  • Figure 31: Regular means of communication with friends and family, by generation typologies and lifestage, December 2006
• Taking Control of Finances
• Key Points
• Finance -- the ideal product for a virtual world...
• ...but what impact has it had on the iPod Generation?
• Saving and investment in the iPod Generation -- low willpower...
  • Figure 32: Attitudes towards saving and investment, by techie typolgies, lifestage and working status, 2006
• ...but good intentions
• Does willpower come with age?
  • Figure 33: Attitudes towards spending, by techie typologies, lifestage and working status, 2006
• Who is most likely to profit from the iPod Generation?
• The iPod Generation moves its finances online
  • Figure 34: Usage of online financial services in the last six months, by generation typologies and lifestage, December 2006
• The CD Generation takes the financial lead...
  • Figure 35: Financial services products owned, by generation typologies, December 2006
• ...but the iPod Generation is a key target
  • Figure 36: Financial services products owned, generation typologies, by lifestage, December 2006
• The importance of cross-selling
  • Figure 37: Where financial accounts are held, by product ownership, December 2006
• The iPod Generation -- moving with the crowd, for once?
• Work and Career
• Key Points
• Technofans -- putting the hours in
  • Figure 38: Average working hours, by lifestage and techie typologies, 2006
• Show me the money
  • Figure 39: Attitudes towards job security and the reasons for going to work, by lifestage, working status and techie typologies, 2006
• Building a career -- but not being defined by it
  • Figure 40: Attitudes towards earnings and careers, by lifestage, working status and techie typologies, 2006
• Rising to the top
  • Figure 41: Career ambitions, by lifestage, working status and techie typologies, 2006
• Drive, ambition -- but a desire to have fun outside the office
• The Inner (and Outer) Self
• Key Points
• A generation of sportspeople?
  • Figure 42: Frequency of exercise, by techie typologies, gender and lifestage, 2006
• Technofans looking to improve themselves
  • Figure 43: Attitudes towards good health, by techie typologies, gender and lifestage, 2006
• Avoiding the additives
  • Figure 44: Attitudes towards additive-free foods and healthy diet, by techie typologies, gender and lifestage, 2006
• Not interested in diet food, but still checking the label
  • Figure 45: Attitudes towards food labeling and diet foods, by techie typologies, gender and lifestage, 2006
• Female Technofans -- looking for alternatives?
  • Figure 46: Attitudes towards alternative medicine, by techie typologies, gender and lifestage, 2006
• The snack food generation
  • Figure 47: Attitudes towards healthy eating, by generation typologies and lifestage, December 2006
• The new traditionalists
  • Figure 48: Attitudes towards family meals, by generation typologies and lifestage, December 2006
• Family pushes meals up the agenda
• Looking the part
  • Figure 49: Attitudes towards style and clothes, by techie typologies, gender and lifestage, 2006
• Younger Technofans -- opting for designer labels, or for comfort?
  • Figure 50: Attitudes towards comfort and designer labels, by techie typologies, gender and lifestage, 2006
• Leisure and Holidays
• Key Points
• Have cash, will travel
  • Figure 51: Number of holidays taken, by techie typologies and lifestage, 2006
• Technofans heading further afield...
  • Figure 52: Last holiday destination, by techie typologies, 2006
• ...as do the footloose and fancy-free
  • Figure 53: Last holiday destination, by techie typologies and lifestage, 2006
• A need to focus on UK breaks
• A generation of couch potatoes?
  • Figure 54: Favourite leisure activities, by generation typologies, December 2006
• Music and the Internet -- the defining combination for the iPod Generation
  • Figure 55: Favourite leisure activities, by generation typologies and lifestage, December 2006
• Films and music the priority
  • Figure 56: Favourite leisure activities among pre-/no family respondents, by generation typologies, December 2006
• Making the Most of the Internet
• Key Points
• Online commerce comes of age...
  • Figure 57: Online activities in the last six months -- purchases, December 2006
• ...while interactive media offer new possibilities
  • Figure 58: Online activities in the last six months -- media usage, December 2006
• New media, new hobbies
• TV downloads -- still the preserve of early adopters
  • Figure 59: Online activities in the last six months -- downloads, by generation typologies and lifestage, December 2006
• Arguments for relaxing DRM?
• Do downloads impact on CD purchasing?
  • Figure 60: Online media usage and purchasing among the iPod Generation, December 2006
• Online commerce -- the cornerstone of the Internet revolution
  • Figure 61: Online activities in the last six months -- purchases, by generation typologies and lifestage, December 2006
• YouTube -- the new water cooler conversation piece?
  • Figure 62: Online activities in the last six months -- gaming and networking, by generation typologies and lifestage, December 2006
• Pre-/no family iPodders head for the networking sites
• The search for control
• Finances move online
  • Figure 63: Frequency of online purchasing, by product category, December 2006
• iPod Generation steadily migrating online
  • Figure 64: Frequency of online purchasing, by product category and generation typologies, December 2006
• Saving time online
  • Figure 65: Frequency of online purchasing, by product category, generation typologies and lifestage, December 2006
• Ethics and the Environment
• Key Points
• The recycling generation?
  • Figure 66: Attitudes towards the environment and recycling, by lifestage and techie typologies, 2006
• Saving the world -- at a cost
  • Figure 67: Attitudes towards ethical business and environmentally friendly products, by lifestage and techie typologies, 2006
• A fifth of the iPod Generation live a green life
  • Figure 68: Attitudes towards green living, by gender, lifestage and generation typologies, December 2006
• Fair trade, or organic?
  • Figure 69: Attitudes towards organic, fair trade and supermarket shopping, by gender, lifestage and generation typologies, December 2006
• Capitalising on the iPod' s green credentials...
• ...while avoiding accusations of greenwash
• The Future
• Key Points
• Future purchases
• More spending ahead for the iPod Generation...
  • Figure 70: Planned future purchases of in-home technology by the generation typologies, December 2006
• ...as they take control of their television, as well as their music
• Trading up to video iPods
  • Figure 71: Planned future purchases of portable technology, by the generation typologies, December 2006
• Market Size and Forecast
• Key points
• Total market sees a boom
• Growth has been boosted by:
  • Figure 72: UK retail sales of portable technology, at current and constant 2001 prices, 2001-06
• The market by product area
  • Figure 73: Estimated retail sales of portable technology, by product area, 2006
• Future trends
• Forecast
  • Figure 74: Market size and forecast of portable technology, at current and constant 2006 prices, 2001-11
• Deflation and cannibalisation
• Socio-economic factors favourable
• Factors incorporated in the forecast
• Future life events
• The DIY generation?
  • Figure 75: Expected life events in the next 12 months, by techie typologies, 2006
• Letting the future take care of itself
  • Figure 76: Attitudes towards the future, by interest in techie typologies and lifestage, 2006
• Selling to the iPod Generation -- appealing to the here and now
• Financial services
• Travel
• Health and fitness
• The high street
• Media and communications -- music
• Media and communications -- video
• Media and communications -- broadcast
• Appendix
• Macro-economic trends
  • Figure 73: Trends in the age structure of the UK population, by gender, 2001-11
  • Figure 74: Figure 78: Forecast adult population trends, by socio-economic group, 2001-11
  • Figure 75: Forecast adult population trends, by lifestage, 2001-11
  • Figure 76: Trends in personal disposable income and consumer expenditure, 2001-11
  • Figure 77: UK multichannel TV households, by platform, 2001-06
  • Figure 78: Internet penetration, by gender, socio-economic group and age, 2001-06
• The iPod Generation and Typologies -- demographic profile
  • Figure 79: Demographic profile of the Generation Typologies, by gender, age, region and socio-economic status, December 2006
  • Figure 80: Demographic profile of the Generation typologies, by lifestage, presence of children, household income and Internet usage, December 2006
  • Figure 81: Demographic profile of the Generation typologies, by TV reception, supermarket usage, TV viewing and newspaper readership, December 2006
  • Figure 82: Demographic profile of the Techie Typologies by gender, age, region, socio-economic group and children, December 2006
• Technology ownership
  • Figure 83: Ownership of in-home technology, by generation typologies and lifestage, December 2006
  • Figure 84: Ownership of portable technology, by generation typologies and lifestage, December 2006
• Family
  • Figure 85: Importance of family and career, by techie typologies and lifestage, 2006
  • Figure 86: Willingness to sacrifice time with family in order to get ahead, by gender, lifestage and techie typologies, 2006
  • Figure 87: Attitudes towards spending time with friends and family, by gender, lifestage techie typologies, 2006
  • Figure 88: Attitudes towards going out, by gender, lifestage and techie typologies, 2006
  • Figure 89: Attitudes towards home decoration, by gender, lifestage and techie typologies, 2006
  • Figure 90: Figure 94: Attitudes towards DIY, by gender, lifestage and techie typologies, 2006
  • Figure 91: Frequency of family contact, by lifestage and generation typologies, December 2006
  • Figure 92: Closeness to family and friends, by generation typologies and lifestage, December 2006
  • Figure 93: Regular means of communication with parents, by generation typologies and lifestage, December 2006
  • Figure 94: Regular means of communication with siblings, by generation typologies and lifestage, December 2006
  • Figure 95: Regular means of communication with other family members, by generation typologies and lifestage, December 2006
  • Figure 96: Regular means of communication with close friends, by generation typologies and lifestage, December 2006
  • Figure 97: Regular means of communication with other friends, by generation typologies and lifestage, December 2006
  • Financial services
  • Figure 98: Attitudes towards spending and saving, by techie typologies, lifestage and working status, 2006
  • Figure 99: Ownership of selected financial services products, by generation typologies and lifestage, December 2006
  • Figure 100: Where financial accounts are held, by product ownership, December 2006
  • Figure 101: Where financial accounts are held, by generation typologies , December 2006
• Working status
  • Figure 102: Average working hours, by lifestage and techie typologies, 2006
  • Figure 103: Attitudes towards job security and the reasons for going to work, by lifestage, working status and techie typologies, 2006
  • Figure 104: Attitudes towards earnings and careers, by lifestage, working status and techie typologies, 2006
  • Figure 105: Career ambitions, by lifestage, working status and techie typologies, 2006
• The Inner (and Outer) Self
  • Figure 106: Frequency of exercise, by techie typologies, gender and lifestage, 2006
  • Figure 107: Attitudes towards good health, by techie typologies, gender and lifestage, 2006
  • Figure 108: Attitudes towards additive-free foods and healthy diet, by techie typologies, gender and lifestage, 2006
  • Figure 109: Attitudes towards alternative medicine, by techie typologies, gender and lifestage, 2006
  • Figure 110: Attitudes towards food labeling and diet foods, by techie typologies, gender and lifestage, 2006
  • Figure 111: Spending on toiletries and cosmetics, by techie typologies, gender and lifestage, 2006
  • Figure 112: Attitudes towards style and clothes, by techie typologies, gender and lifestage, 2006
  • Figure 113: Attitudes towards comfort and designer labels, by techie typologies, gender and lifestage, 2006
  • Figure 114: Attitudes towards family meals, by generation typologies and lifestage, December 2006
  • Ethics and the environment
  • Figure 115: Attitudes towards the environment and recycling, by lifestage and techie typologies, 2006
  • Figure 116: Attitudes towards ethical business and environmentally friendly products, by lifestage and techie typologies, 2006
  • Figure 117: Attitudes towards green living, by gender, lifestage and generation typologies, December 2006
  • Figure 118: Attitudes towards organic, fair trade and supermarket shopping, by gender, lifestage and generation typologies , December 2006
• Leisure and Holidays
  • Figure 119: Number of holidays taken, by techie typologies and lifestage, 2006
  • Figure 120: Last holiday destination, by techie typologies and lifestage, 2006
• Making the most of the Internet
  • Figure 121: Online activities in the last six months -- media usage, by generation typologies and lifestage, December 2006
  • Figure 122: Online activities in the last six months -- purchases, by generation typologies and lifestage, December 2006
  • Figure 123: Online media usage and purchasing among the Generation typologies, December 2006
  • Figure 124: Frequency of online purchasing, by product category, generation typologies and lifestage, December 2006
• Future
  • Figure 125: Expected life changes in the next 12 months, by techie typologies and lifestage, 2006
  • Figure 126: Planned future purchases of in-home technology by generation typologies, December 2006
  • Figure 127: In-home technology -- future purchasing intentions, by lifestage and generation typologies, December 2006
  • Figure 128: Planned future purchases of portable technology by generation typologies, December 2006
  • Figure 129: Portable technology -- future purchasing intentions, by lifestage and generation typologies, December 2006